2017-03 Performance Audit Report: County of Hawai'i's Department of Human Resources Hiring Practices

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Valerie To Poindexter Chair & Presiding Officer Council District I 77 • OF 0 Aw V.�/Iiunfv of ILIFaftral"i Bonnie S• Nims, CGAP Legislative Auditor Business Address 1266 Kamehameha Avenue Suite A-8 Hilo, Hawai `i 96720 OFFICE OF THE LEGISLATIVE AUDITOR 25 Aupuni Street Hilo, Hawai `i 96720 * (808) 961-8386 * Fax (808) 961-8905 website: http://hawaiicounty_.gov e-mail: publiclao(yhawaiicounty_.gov September 7, 2017 The Honorable Valerie T. Poindexter, Council Chairperson and Members of the Hawai `i County Council Hawai' i County Council 25 Aupuni Street Hilo, Hawaii 96720 Dear Chair Poindexter and Council Members, In accordance with Hawaii County Charter Section 3-18(d)(2), attached is the Office of the Legislative Auditor's report of our audit of hiring practices at the Department of Human Resources (DHR). The purpose of this audit was to determine whether hiring practices in place were effective at ensuring equitable, uniform, and transparent selection of candidates and ensuring compliance with applicable laws, regulations, County policies and procedures and best practices. In addition, we identified potential areas for improvement. We reviewed and evaluated internal controls over hiring practices during calendar year 2016 through January 2017. We also examined 46 new hire civil service positions in four departments during calendar year 2016. According to Hawai "i state law, DHR has the ultimate authority and responsibility of the human resource function for the County of Hawai ' i. However, we found numerous questionable hiring practices including how applicants were identified to be interviewed, how applicants were assessed, and how departments were using DHR's referred list of eligible applicants. This situation resulted, in part, from a fear of retaliation including a lack of a safe mechanism for reporting concerns or complaints. We also found inappropriate involvement by the Staffing Review Committee (SRC), which was established by the prior Office of the Mayor and DHR in March 2013. The current Office of the Mayor eliminated the committee in early 2017. This situation also resulted from: insufficient monitoring by DHR to ensure departmental compliance, the human resources software (NeoGov) was not fully utilized, extended open recruitment of not "difficult to fill" positions, and unclear guidance of prohibited personnel practices. The County of Hawaii Office of the Mayor and DHR should continue to ensure that the hiring selection rests solely with the appointing authority and prevent preferential treatment of potential new hire candidates. They should also consider implementing an independent whistleblower program. The Department of Human Resources should implement procedures to provide