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HomeMy WebLinkAboutFollow-up on Temporary staffing services reportFollow-up report on Temporary Staffing Services #11/12-8 March 2012 FOLLOW-UP REPORT Temporary Staffing Services (Internal audit report #10/11-2 issued May 2011) Deschutes County, Oregon David Givans, CPA, CIA Deschutes County Internal Auditor 1300 NW Wall St Bend, OR 97701 (541) 330-4674 David.Givans@deschutes.og Audit committee: Michael Shadrach, Chair - Public member Chris Earnest - Public member Gayle McConnell - Public member Jean Pedelty - Public member Greg Quesnel - Public member Jennifer Welander - Public member Anthony DeBone, County Commissioner Tom Anderson, Community Development Director Scot Langton, County Assessor Follow-up report on Temporary Staffing Services #11/12-8 March 2012 TABLE OF CONTENTS: 1. INTRODUCTION 1.1. Background ………………………………………...………………................................... 1 1.2. Objectives & Scope ……………………………………..………………………….…….… 1 1.3. Methodology ……………………………………………………..…………………….……. 1 2. FOLLOW-UP RESULTS ……………….…...………………………….............................. 2 3. APPENDIX I – Internal Audit Recommendations - Updated Workplan for Report #10/11-2 (Status updated as of March 2012) ........…….…...………................ 3-4 Follow-up report on Temporary Staffing Services #11/12-8 March 2012 Page 1 1. Introduction 1.1 BACKGROUND Audit Authority: The Deschutes County Audit Committee has suggested that follow-ups occur from nine months to one year after the original report issuance. The Audit Committee’s would like to make sure departments satisfactorily address recommendations. 1.2 OBJECTIVES and SCOPE Objectives: The objective was to follow-up on the audit recommendations in the report. Scope: The follow-up included four (4) recommendations from the internal audit on Temporary Staffing Services (#10/11-2) (issued May 2011). The follow-up reflects the status as of March 2012. The original internal audit report should be referenced for the full text of recommendations and discussion. 1.3 METHODOLOGY The follow-up report was developed from information provided by various departments, including Administration, Fair & Expo, and Road. In cases where recommendations have not been implemented, comments were sought for the reasons why and the timing for addressing these. The follow-up is, by nature, subjective. In determining the status of recommendations that were followed up, we relied on assertions provided by those involved and did not attempt to independently verify those assertions. Administration, Fair & Expo and Road are the most responsible for the movement on these recommendations and should be acknowledged. Since no substantive audit work was performed, Government Auditing Standards issued by the Comptroller General of the United States were not followed. DESCHUTES COUNTY INTERNAL AUDIT REPORT DESCHUTES COUNTY INTERNAL AUDIT REPORT DESCHUTES COUNTY INTERNAL AUDIT REPORT Follow-up report on Temporary Staffing Services #11/12-8 March 2012 Page 2 2. Follow -up Results Figure I - How were recommenda- tions implemented? The follow-up included four (4) recommendations in the report. Management did not disagree with any of the recommendations. Figure I provides an overview of the implementation status of the four (4) recommendations that were accepted by management. The detail of the updated workplan is provided in Appendix I. With this follow-up, 75% of the accepted recommendations are complete. This is a good effort considering the nature of these recommendations. The County modified the Personnel Rules as well as went out for bid on temporary staffing services. Follow-up report on Temporary Staffing Services #11/12-8 March 2012 Page 3 3. Appendix Appendix I –Updated Workplan for Report #10/11-2 (Status as of March 2012) Rec# Recommendation Agreement Status Initial Department Comments Updated Comments Estimated Date 1 It is recommended for County departments to consider utilizing the County’s personnel/payroll system for handling some hourly and on-call workers. Agree Ongoing/ Complete ROAD: The Department concurs that there may be some cost savings realized by handling the hiring of temporary employees internally. However, it is the Department’s experience that the benefits of contracting through a temporary staffing agency out- weigh the cost differences in certain situations. This is particularly true with a large seasonal workforce that fluctuates on a daily basis. Being able to make one call and get already screened workers on an as needed basis is a big advantage. Fair/Expo: Agrees there still could be additional savings if some of the temp help was processed through Personnel. The Fair/Expo only uses a handful throughout the year which could be processed, however the annual Fair or large events should be run through the temp agency. 2 It is recommended for the County to consider coordinating a County- wide invitation to bid to minimize cost to County for temporary staffing services. Agree Complete ROAD: The Department concurs with recommendation. The only concern with a County-wide contract is to retain individual departments ability to contact the staffing agency and work directly with them to fulfill specific department needs in a timely manner. FAIR Expo: The Fair/Expo agrees with this also, however is concerned if there will be a cost back to departments for Personnel to do background checks etc. Example: Temp agencies we have used in the past would do the checks at their expense, so if we were paying 31% in the past and now 25.9% the question is will we be charged an indirect from Personnel in the future which would off-set the savings? As mentioned above we use a couple temp help per week for most events and the annual Fair could be up to 200. County Administration completed the public bid process on temporary staffing in June 2011. Six proposals were received and contracts were awarded to two temporary staffing firms. Follow-up report on Temporary Staffing Services #11/12-8 March 2012 Page 4 Rec# Recommendation Agreement Status Initial Department Comments Updated Comments Estimated Date 3 It is recommended the personnel rules indicate that temporary staffing agencies cannot be used to circumvent the rules around hiring or supervising a “member of an individual’s family” (provided for in §3.16.040). Agree Complete County Administration is currently working on expanding the applicability of this specific personnel rule to temporary staffing agency workers by addressing supervisory responsibilities. County Administration completed the public process of expanding the personnel rules to temporary staffing in June 2011. 4 It is recommended for Departments seeking temporary help develop procedures for circumstances when temporary agency employees are related to their employees. Agree Planned ROAD: The Department will institute a policy of checking all temporary agency employees and ensure that placement of the employees in the Department does not violate County Code or policies (this has been the Department’s practice, but we have no written policy in place). May 1, 2012 {END OF REPORT}