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

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Introduction The Office of the Legislative Auditor conducted this performance audit of the County of Hawai "i Department of Human Resources' hiring practices pursuant to Section 3-18 of the Hawaii County Charter, which outlines the Office of the Legislative Auditor's primary duties. Performance audits typically examine the effectiveness, economy, or efficiency of a government program. They can include analyzing the services of an entire department or activity, identifying possible cost savings, identifying the outcomes achieved by a program, or comparing actual department practices against the practices called for in law or policy. Our objective in performance auditing is to improve public services provided by county government. We do this by recommending specific actions that will address the issues we raise and by providing valuable information to the public, the administration, program leadership, the Hawai "i County Council, and the Mayor. A performance audit of Department of Human Resources' hiring practices was included in our fiscal year 2016-2017 annual audit plan based on the results of our countywide risk assessment. There are inherent risks associated with hiring practices. When internal controls are not functioning as designed; internal, ethical, and legal risks related to the program may increase, thereby increasing the risk exposure to the County. Some examples may include: • An existing employee manipulating the recruitment or selection process to ensure the hiring of a close friend or family member. Acting to advance the interests of a friend is risky if the person is not the best candidate for the position. • The assigned members to the selection committee who could be influenced in order to ensure a specific candidate is chosen. A strategic recruitment panel should not be strategically biased. • Bypassing or failing to abide by legislation pertaining to the recruitment and selection process.' Furthermore, numerous constituent concerns regarding unfair hiring practices at the County have been expressed in public forums and directly to the Office of the Legislative Auditor. Due to these risks, we determined a thorough examination of the County's hiring practices, policies, and procedures was warranted. 1 Tooley, Meghan. "Hiring controls: a close look at managing the risks of hiring." http://icblog.firstreference.com/hiring-controls-a-close-look-at-managing-the-risks-of-hiring/ Introduction 1 1 P a g e