Loading...
HomeMy WebLinkAboutCOM 0636.000 2020-2022 (7 � County of I-lawai'i Office of the County Auditor �; J1 County Auditor 120 Pauahi St., 309 °. County of Hawai'i Hilo, HI 96720 w Office of the County Auditor F 608.961.6905 Ph 808.961.8386 o a February 7, 2022 CD Honorable Maile eerios avid, Council Chair c and Members of the awai`i County Council - awai`i County Council CD 25 Aupuni Street .. � Hilo, awai`i 96720 M e Dear Chair David and Council Members, In accordance with generally accepted government auditing standards and the awai`i County Charter Section 3-18( )(3), the Office of the County Auditor has a responsibility to monitor and follow-up on audit recommendations to ensure that audit findings are being addressed through appropriate corrective action and to aid us in planning future audits. We have completed our follow-up audit of the County of Hawai`i's Department of Human Resources Hiring Practices Report No. 2017-03, dated September 7, 2017. The objective was to determine if the Department of Human Resources (DHR) implemented the 2017 hiring practices audit recommendations. In this follow-up audit we tested and found five recommendations were completed and three were resolved. Completed Sufficient and appropriate evidence Department implemented an was available to support all aspects alternative solution that fully of the recommendation, addresses the audit finding or risks. In response to a draft of this follow-up report, the Acting Director of Human Resources expressed general agreement with our audit results. A copy of management's full response can be found in Chapter 3. o m'm rn No Rei. To: � Ref. Dcuje °t , � � Hawaii County is an Equal Opportunity Provider and Emloyar We would like -to express our sincere appreciation and commend the Department of Human esources for their continued efforts to improve hiring practices and for their professionalism, cooperation, and prompt feedback during the follow-up audit process. If you have any questions or concerns about the status of recommendations discussed, please feel free to contact me at 961-8336. Respectfully, C,.. County Auditor County of Hawaii cc: Mitchell D. Roth, Mayor Lee Lord, Managing Director Jon Henricks, County Clerk Merit Appeals Board Waylen Leopoldino, MHR , PHR, Acting Director of Human Resources Lee Botelho, HR Manager, Recruitment and Examination Division Deanna Sako, Finance Director Ikaika Rodenhurst, Director of Public Works Maurice Messina, Parks and Recreation Director Ramzi Mansour, Director of Environmental Management .s a•q _� �J.,��Ill Np P• r4T V�i E pip }=P County of Hawaii Office of the County Auditor Report No. 2022-01 February 7, 2022 J 4Y �1 IW91: 1 lit eL e T County of Hawaii _ Office of the County Auditor County Auditor 120 Pauahi St., 309 ..'; County of Hawai'i Hilo, HI 96720 Office of the County Auditor F 808.961.8905 - -- Ph 808.961.8386 www.hawaiicounty.gov February 7, 2022 Honorable Maile Mederios David, Council Chair and Members of the Hawaii County Council Hawaii County Council 25 Aupuni Street Hilo, Hawaii 96720 Dear Chair David and Council Members, In accordance with generally accepted government auditing standards and the Hawaii County Charter Section 3-18(d)(3), the Office of the County Auditor has a responsibility to monitor and follow-up on audit recommendations to ensure that audit findings are being addressed through appropriate corrective action and to aid us in planning future audits. We have completed our follow-up audit of the County of Hawai`i's Department of Human Resources Hiring Practices Report No. 2017-03, dated September 7, 2017. The objective was to determine if the Department of Human Resources (DHR) implemented the 2017 hiring practices audit recommendations. In this follow-up audit we tested and found five recommendations were completed and three were resolved. Status of Recommendations Completed Resolved 5 3 Sufficient and appropriate evidence Department implemented an was available to support all aspects alternative solution that fully of the recommendation. addresses the audit finding or risks. In response to a draft of this follow-up report, the Acting Director of Human Resources expressed general agreement with our audit results. A copy of management's full response can be found in Chapter 3. Howoi'i County is on Equol Opportunity Provider and Emloyer We would like to express our sincere appreciation and commend the Department of Human Resources for their continued efforts to improve hiring practices and for their professionalism, cooperation, and prompt feedback during the follow-up audit process. If you have any questions or concerns about the status of recommendations discussed, please feel free to contact me at 961-8386. Respectfully, County Auditor County of Hawaii cc: Mitchell D. Roth, Mayor Lee Lord, Managing Director Jon Henricks, County Clerk Merit Appeals Board Waylen Leopoldino, MHRM, PHR, Acting Director of Human Resources Lee Botelho, HR Manager, Recruitment and Examination Division Deanna Sako, Finance Director Ikaika Rodenhurst, Director of Public Works Maurice Messina, Parks and Recreation Director Ramzi Mansour, Director of Environmental Management Table of Contents Executive Summary........................................... 1 AboutUs ................................................................ 3 Chapter 1 Introduction Objective......................................................... 4 Scope and Methodology ................................. 4 Definitions ....................................................... 5 Chapter 2 Status of Recommendations Administrative Recommendation 1 .............................. 6 Recommendation 2 .............................. 8 Monitoring and Oversight Recommendation 3 .............................. 9 Recommendation 4............................ 10 Training Recommendation 5............................ 11 Continuous Recruitment Recommendation 6 ............................ 13 Prohibited Personnel Hiring Practices Recommendation 7 ............................ 14 Recommendation 8 ............................ 16 Conclusion .................................................. 17 Chapter 3 Management Response ............ 18 Chapter 4 Attachments Post Audit Progress Report on Hiring Practices for 2018......................................... 19 Executive Summary Background The Office of the County Auditor has completed a follow-up engagement with the County of Hawai`i's Department of Human Resources (DHR) Hiring Practices. The original audit was conducted in response to numerous complaints from employees and the public. The audit identified the Staffing Review Committee as having a significant role in the hiring process and consisted of members who exerted undue influence. DHR's previous process contained questionable hiring authority, inadequate segregation of duties, and insufficient monitoring and oversight. Based on the conditions at the time, eight (8) recommendations were made. The purpose of this follow-up audit was to determine if DHR implemented the prior recomendations. Status of Recommendations Status 1. We recommended DHR and the Office of the Mayor ensure sole hiring Completed authority rests with the appointing authority and prevent preferential treatment. 2. We recommended DHR and the Office of the Mayor consider implementing Resolved an independent whistleblower hotline. 3. We recommended DHR develop and implement policies to address Completed monitoring and oversight to detect, deter, and prevent questionable hiring practices and ensure compliance with laws, rules, and regulations. 4. We recommended DHR require hiring departments use the NeoGov Completed system to track and monitor applicant's status during the interview and selection process. 5. We recommended DHR provide on-going mandatory hiring procedure and Completed merit principles training for employees involved in the hiring process. 6. We recommended DHR only use open-competitive recruitments on a Completed continuous basis for "difficult-to-fill" classes of work. 7. We recommended DHR develop and implement written policies and Resolved procedures clearly defining prohibited personnel hiring practices. 8. We recommended DHR work with other jurisdictions to have the State's Resolved Hawaii Revised Statutes be updated or reinstated to include provisions addressing prohibited personnel practices using federal laws as a guideline. Executive Summary 1 1 Department Actions 1. DHR eliminated the Staffing Review Committee. DHR updated their rules, policies, and procedures to ensure hiring selection rests with the appointing authority. Top 5 ranked applicants plus ties replaces the previous practice of referring the entire list without proper vetting of the applicant pool. 2. DHR agreed to the initial recommendation and through multi-department discussions it was determined the independent Office of the County Auditor would administer a whistleblower hotline. 3. DHR audited hiring packets to ensure departments were following rules and enforcing updated procedures. 4. In May 2017, DHR required departments use NeoGov, the applicant tracking system. 5. DHR updated interview and selection procedures. They administered "Conducting an Effective Job Interview"training. This training is mandatory for employees and non-employees serving on interview panels. Several other training modules are also offered. DHR tracks training attendance. 6. In December 2016, DHR closed recruitments for positions that were not difficult-to-fill. 7. DHR affirmed their recruitment and examination system were consistent with equal opportunity, state statutes, selections were impartial, and training materials were consistent with merit principles. In October 2018, DHR developed, adopted, and circulated, "Human Resources Best Practices" to re-enforce their actions and decisions. Attachments 1.2 - 1.4. 8. DHR contacted and was unable to convince the state to seek reinstatement of provisions to address prohibited personnel hiring practices. DHR mitigated the risk internally by reinstating written examinations and testing applicant's ability and fitness for identified classes of work. Conclusion We commend the Department of Human Resources for their efforts to improve hiring practices for the County of Hawaii. To further strengthen internal controls over the County's hiring process, we've identified some opportunities. DHR should continue ongoing monitoring of all department's interview packets as a best practice and address the following in their rules, policies, and procedures: • Adopt monitoring and oversight procedures • Define nepotism • Define conflict of interest • Define familial relationships including Hanai, relationships • Establish a policy addressing nepotism and conflict of interest • Disclose any potential conflict of interest on the interview panelist acknowledgment form We commend the Department of Human Resources for their commitment to the impartial selection of individuals for public services by means of competitive tests which are fair, objective, and practical in serving the people of Hawaii County. It is the policy of the County to ensure hiring departments are filling all civil service positions with the most suitable applicants available for the position based on the merit principle using fair and uniformly administered procedures. 2 1 Executive Summary About us Mission It is our mission to serve the Council and citizens of Hawaii County by promoting accountability, fiscal integrity, and openness in local government. Through performance and/or financial audits of County agencies and programs, the Office of the County Auditor examines the use of public funds, evaluates operations and activities, and provides findings and recommendations to elected officials and citizens in an objective manner. Our work is intended to assist County government in its management of public resources, delivery of public services, and stewardship of public trust. Audit Authority Hawaii County Charter §3-18 establishes an independent audit function within the Legislative Branch through the Office of the County Auditor. Purpose The purpose of this engagement is to follow-up and monitor the responses to audit recommendations by audited entities by evaluating if the County's current hiring practices are adequate to ensure equitable, uniform, and transparent selections of civil service candidates. About Us 1 3 This page intentionally left blank. Chapter 1 Introduction Objective Did the Department of Human Resources implement the 2017 hiring practices audit recommendations? Scope The prior audit evaluated hiring practices from January 2016 to September 2017. The follow-up audit evaluated hiring practices from October 2017 to January 2022. In addition, we reviewed recruitments identified in the original audit scope including Department of Public Work's Laborer II, Department of Finance's Clerk III, Department of Parks and Recreation's Park Caretaker I, and the Department of Environmental Management's Scale Attendant. This follow-up audit was limited to reviewing and reporting on the implementation of the recommendations. We did not consider new or previous issues that did not relate to our original recommendations. Methodology To verify the Department of Human Resources implemented the 2017 hiring practices recommendations, we: • Corroborated information with appropriate staff to follow-up on the responses to audit recommendations • Reviewed applicable laws and other relevant governance • Performed tests of internal controls and transactions over the recruitment process • Conducted site visit to verify monitoring and oversight practices • Was mindful of potential fraud, waste, and abuse during the audit • Noted exceptions and identified areas for improvement We conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives. Our conclusions on the effectiveness of these controls are detailed within this report. Introduction 1 4 Definitions Completed: Department has fully implemented the audit recommendation. We reviewed sufficient and appropriate evidence to support all aspects of the recommendation. Resolved: Although department did not implement the audit recommendation, it implemented an alternative solution/mitigating/compensating control that fully addressed the applicable audit finding or risk. "Merit principle" means the selection of persons based on their fitness and ability for public employment and the retention of employees based on their demonstrated appropriate conduct and productive performance. "Merit system" means the human resources management system based upon the purposes of the merit principle and building of a career service in government, free from coercive political influences, to render impartial service to the public at all times, according to the dictates of ethics and morality and in compliance with all laws. "Skill set" means a particular category of knowledge, skills, and abilities desired to perform the essential job duties. The skill set may be more encompassing and specific than the minimum qualification requirements. "Open-competitive recruitment" means a recruitment whereby everyone, including the public and County employees, may apply. "Registration recruitment" means a method of recruitment for unskilled classes of work with no examination. Hawaii Revised Statues (HRS) §76-11 defines the "Appointing authority" as the department head or designee having the power to make appointments or changes in the status of employees. 5 1 Definitions Chapter 2 Status of Recommendations Administrative Condition and Cause The Staffing Review Committee (SRC) influenced the County's hiring process. Effect of the Condition In select cases, Department staff were pressured to place priority on persons of interest above the merits of other applicants. Additionally, staff feared retaliation, resulting in a bypass of established internal controls. Recommendation 1 "While the Staffing Review Committee (SRC) has already been eliminated, we recommend the Office of the Mayor, and the Department of Human Resources ensure that hiring selection rests solely with the appointing authority and prevents preferential treatment of new hire candidates. This may include updating policies and procedures, the County Charter, and/or the County Code." Department Action To meet this recommendation, DHR updated their rules, policies, and procedures, strengthened segregation of duties, and ensured the appointing authority determined the method of filling its civil service vacancy. Specifically, the department took the following actions: In October 2018, DHR reaffirmed through a memorandum, "the Department of Human Resources will not be involved in the actual decision of a hire." In December 2019, DHR revised their rules which provides for: • The referral of the top five ranked names (rule of 5 plus tie scores)on an open-competitive list unless otherwise requested by the appointing authority. The applicant ranking on the referred list is also based on their examination rating and conditions of employment. Previously, DHR referred the entire eligible list and left it up to the hiring department to determine the interview pool using their skill set evaluation criteria method. • For non-public safety positions, ten names on a registration list will be randomly generated for each vacancy based on the assigned district and duration of employment. Previously, DHR referred the entire list of eligibles and left it up to the hiring department to determine the interview pool using their skill set evaluation criteria method. Status of Recommendation 1 6 DHR updated and strengthened uniform policies and procedures to ensure selections for the positions are impartial, free from coercive political influences, based on the needs of the County, including applicant's fitness and ability for public employment. Specific procedures were updated to provide internal control over: • Filling Civil Service Positions • Interview and Selection • Request To Fill (RTF) Vacant Position DHR also provided human resources training for cabinet members discussing the role and responsibilities of the appointing authority. Audit Activity To verify completed status, we reviewed laws, rules, procedures, and traced applicable source documents maintained in NeoGov, the applicant tracking system and tested hiring practices to determine if DHR followed and enforced their rules, policies, procedures and found: • DHR updated rules, policies, and procedures to align with best practices. • The appointing authority determined the method of filling its civil service vacancies, no exceptions noted. The appointing authority also known as the department (head) is responsible for determining the method by which the vacant position is to be filled. The Managing Director for the Executive Branch and the Council Chair for the Legislative Branch respectively, reviews and approves the Request to Fill. The appointing authority has discretion in filling its vacancies by: • Transfer • Demotion • Appointment from an open-competitive or registration list • An internal recruitment within the department • An internal recruitment within the County • Intergovernmental movement, and • Any other means provided for by statute, these rules, or procedures • The appointing authority provided justification for filling its vacancy, no exceptions noted. • DHR reviewed and approved uniform Police department's Interview and Selection Procedures in November 2018, no exceptions noted. We determined this recommendation is completed. Status: Completed 7 1 Status of Recommendations Administrative Condition and Cause County employees and the public had concerns about preferential treatment. Effect of the Condition With limited opportunity to report concerns, employees remained silent for fear of retaliation. As a result, stakeholders lost confidence in the hiring process. Recommendation 2 "We further recommend the Office of the Mayor, and the Department of Human Resources consider implementing an independent whistleblower program and system to allow anonymous complaints to be reported." Department Action To meet this recommendation, DHR provided the following response, "DHR agrees an independent whistleblower program would be an effective means to receive anonymous complaints related to hiring practices. DHR supports an independent program where the administration and oversight fall outside the purview of the mayor. An independent program would decrease the potential for political influence or interference in response to complaints." Audit Activity In January 2022, the Office of the County Auditor implemented fraud and whistleblower hotlines to provide County employees and members of the public, a way to confidentially report suspected fraud, waste, and abuse of County positions or resources in a one-year pilot program ending June 30, 2023. The program is outside the purview of the Mayor and the Department of Human Resources. We determined this recommendation is resolved. More information is available: Online: https://www.hawaiicounty.gov/departments/office-of-the-county-auditor/whistleblower Fraud and waste hotline: (808) 480-8213 Whistleblower hotline: (808) 480-8279 Status: Resolved Status of Recommendations 1 8 Monitoring and Oversight Condition and Cause DHR did not monitor hiring department's interview and selection process to ensure compliance with the merit principle. Effect of the Condition The County did not ensure uniform and transparent hiring practices. Recommendation 3 "We recommend the Department of Human Resources develop and implement policies and procedures that address monitoring and oversight of countywide interviewing and selection processes to deter, detect, and prevent questionable hiring practices and ensure compliance with applicable laws, rules, and regulations." Department Action To meet this recommendation, DHR established a process to review interview packets to ensure hiring departments are following employment laws including lawful and non-discrimination practices, countywide interview and selection procedures, and the merit principle. From October 2018 to November 2021, DHR reviewed twenty-two hiring department's interview packets for: • Position's information sheet with instructions to the panelists • Interview questions with model answers/concepts • Assessment exercise(s) with criteria for rating applicants • Rating sheets DHR disclosed the following exceptions: • DHR reviewed all County departments except for the Office of Management because there was no civil service request to fill to test. • A review of Mass Transit Agency interview packets is past due as of December 30, 2021. Audit Activity To verify completed status, we reviewed all twenty-two interview packets or 100% of the testing population, and found no exceptions. We identified opportunities to further strengthen monitoring and oversight of the County's hiring process. DHR should continue ongoing monitoring of all department's interview packets as a best practice and address the following in their rules, policy, and procedures: • Adopt monitoring and oversight procedures • Define nepotism • Define conflict of interest • Define familial relationships including Hanai, relationships. A term used in the Hawaiian culture that refers to the informal adoption of one person by another • Establish a policy addressing nepotism and conflict of interest • Disclose any potential conflict of interest on the interview panelist acknowledgment form Status: Completed 9 1 Status of Recommendations Monitoring and Oversight Condition and Cause DHR was not monitoring hiring department disposition of all applicants referred in NeoGov. Effect of the Condition DHR was unaware hiring departments were bypassing qualified applicants for an interview and not uniformly vetting qualified applicants. Recommendation 4 "We recommend the Department of Human Resources require individual hiring departments to use the NeoGov system to track and monitor the status of candidates during the interview and selection process." Department Action To meet this recommendation, in May 2017, DHR required hiring departments track the status of all applicants referred in the NeoGov system: • Date of contact o if still interested in an interview o schedule job interview o selection o reason for non-selection: ■ no response by deadline ■ decline interview ■ interviewed, not selected ■ decline offer • Method of written contact o Electronic notification through NeoGov or US mail DHR also monitors: • Reason for extending referred list beyond 90-day eligibility period • Justification for requesting additional names • Accurate reporting of new hire • Expiration of referred lists Audit Activity To verify completed status, we reviewed applicable NeoGov source documents (e.g., exam plan, evaluation steps with detail, referred list with status detail, notices to eligibles, etc.) and found hiring departments were notifying and tracking applicants in NeoGov, no exceptions were noted. We determine this recommendation is completed. Status: Completed Status of Recommendations 1 1 0 Training Condition and Cause Although DHR trained hiring departments to uniformly apply skill set evaluation criteria method to determine the interview pool, lack of oversight lead to a breakdown of internal controls. Effect of the Condition Hiring departments used questionable criteria (i.e., letters of interest from the applicant requesting an interview without civil service status, mailing address, interviewing the same number of applicants as vacancies when there is large pool of applicants, etc.) as a tool to identify the interview pool. Recommendation 5 "We recommend that the Department of Human Resources provide mandatory on-going hiring procedure and merit principles training for all employees involved in the hiring process." Department Action To meet this recommendation, DHR updated their interview and selection procedures to eliminate using the skill set evaluation criteria method to identify the interview pool but used as a tool to identify the desired education, skill set, licenses(s), special working conditions, and ability to perform the essential job duties. DHR provided "Conducting an Effective Job Interview" (CEJI) training, a mandatory course for employees and non-employees serving on interview panels. This training provided an overview of the interview and selection process in filling a county position training included a: • Review of class specification • Review of position description • Required knowledge, skills, and abilities • Development of skill set and criteria • Roles and responsibilities of interview chair/panelist • Asking standard questions and clarifying questions • Interview questions with guidelines for panelists • Protected categories under federal and state laws • Lawful/unlawful employment inquires • Recommendation(s) for selection 1 1 1 Status of Recommendations DHR also tracked mandatory training for employees and non-employees serving on interview panels. In addition, DHR conducted the following training: • Guidelines for Pre-Employment Inquiries • Skill Set Development and Evaluation • Developing Interview Questions & Assessment Exercises • Human Resources Boot Camp • Cabinet Human Resources Training • Supervisory Training Program Audit Activity To verify completed status, we reviewed sign-in sheets and training material containing hiring procedures and merit principles, and found no exceptions. We determine this recommendation is completed. Status: Completed Status of Recommendations 1 1 2 Continuous Recruitment Condition and Cause DHR conducted continuous recruitment for classes of work that were not difficult-to-fill. Effect of the Condition Hiring departments were unable to manage large lists of qualified applicants. Recommendation 6 "We recommend the Department of Human Resources only use open-competitive recruitments on a continuous basis for"difficult-to-fill"classes of work." Department Action To meet this recommendation, DHR closed continuous recruitment in December 2016 for classes of work that were not difficult-to-fill. DHR no longer conducts open-continuous recruitments for entry-level classifications for Custodian-Groundskeeper, Laborer II, and Park Caretaker I. These registration recruitments are advertised for 10-calendar days. Difficult-to-fill positions generally include positions that: • Require specialized education, training, and/or certifications • Have a low number of qualified applicants Audit Activity To verify completed status, we reviewed and found: • Recruitment announcements were advertised for 10-calendar days, no exceptions noted. • Open-competitive recruitment on a continuous basis were for difficult-to-fill positions, no exceptions noted. • DHR authorized continuous recruitment for Clerk III and Cashier II positions to increase the applicant pool island-wide because there are more Request to Fill (RTF) requests, a low number of qualified applicants for these positions, and the prior list expired, no exceptions noted. • We determine this recommendation is completed. Status: Completed 1 3 1 Status of Recommendations Prohibited Personnel Hiring Practices Condition and Cause DHR did not have provisions clearly addressing prohibited personnel hiring practices in writing. Effect of the Condition Appearance of, or actual preferential treatment of applicants. Recommendation 7 "We recommend the Department of Human Resources develop and implement written policies and procedures clearly defining prohibited personnel hiring practices." Department Action To meet this recommendation, DHR asserted their rules, policies, and procedures conform to Hawaii Revised Statutes Chapter 76 Civil Service Laws including the merit principle, providing: • Equal opportunity is in accordance with all laws prohibited discrimination. No person shall be discriminated against in examination, appointment, reinstatement, reemployment, promotion, transfer, demotion, or removal, with respect to any position when the work may be efficiently performed by the person without hazard or danger to the health and safety of the person or others. • Impartial selection of individuals for public service by means of competitive tests which are fair, objective, and practical. DHR also said lawful and unlawful employment practices are covered in various written procedures conforming with the merit principle in various training they provided. In October 2018, DHR developed, adopted, and circulated "Human Resources Best Practices" as a foundation of their actions and decisions. It describes the best practice they strive to maintain the core values of the merit system which the County's personnel system is based on in accordance with state law. (Attachments 1.2 — 1.4) DHR oversees departments and agencies compliance with: • Continuous recruitment request requirements. • Employee training requirements to ensure hiring practices are fair, impartial, and relevant to the position. • Interview and selection procedures. • Audit of Interview Packets Memorandum No. 018-078. • Filling Civil Service Positions procedures. • HRS §76-1: selection of persons based on their fitness and ability for public employment. Status of Recommendations 1 14 Audit Activity To verify resolved status, we reviewed DHR rules, applicable policies and procedures, HR Best Practices, various training materials and memos that addressed employment laws including lawful and non-discrimination practices, equal opportunity, and discrimination and compared to hiring practices and found DHR applied compensating controls to address the risk. We identified opportunities to further strengthen internal controls. For example, DHR should clearly define, develop, and implement written policies and procedures to address prohibited personnel hiring practices to ensure future administrations adhere to applicable federal and state laws, their rules, and County's policy and procedures. Otherwise, incorporate Human Resources Best Practices into their rules, policies, and procedures. Prohibited personnel practices (PPPs)is defined as employment-related activities that are banned in the workforce because they violate the merit system through some form of employment discrimination, retaliation, improper hiring practices, or failure to adhere to civil service laws, rules, or regulations that directly concern the merit system principles. Status: Resolved 1 5 1 Status of Recommendations Prohibited Personnel Hiring Practices Condition and Cause DHR changed its rules to allow the SRC to make questionable hiring decisions. Effect of the Condition Appearance of or actual preferential treatment of candidates. Recommendation 8 "We further recommend the Department of Human Resources work with other jurisdictions to have the State's Hawaii Revised Statutes updated or reinstated to include provisions that addresses prohibited personnel practices using federal laws as a guideline." Department Action To meet this recommendation, in October 2017 and November 2021, DHR contacted the Legislature as well as the State Department of Human Resources Development (DHRD) regarding steps to address prohibited personnel practices, but actions did not result in reinstating Prohibited Activities in Hawaii Revised Statutes Sections 76-91, 92 that was repealed in 2001. To mitigate the risk, in December 2019, DHR reinstated written examinations to ensure testing of fitness and ability of applicants for positions in civil service as follows: • Classes of work are entry level into a series: o Clerical o Professional o Blue collar • Classes of work are within a career progression series • Education and experience requirements are either non-existent or minimal • Applicant pool size is large based on recruitment history • For designated classes such as fire and police, examinations are conducted at the department's request annually, and they are for internal recruitments Audit Activity To verify resolved status, we reviewed rules, NeoGov exam plan, notes, corroborated with DHR staff, and found no exceptions. Status: Resolved Status of Recommendations 1 1 6 Conclusion Hawaii County is an Equal Opportunity Provider and Employer. The County does not discriminate in employment, provisions of services, and access to programs and facilities in accordance with federal and state laws. It is the policy of the County to ensure hiring departments are filling all civil service positions with the most suitable applicants available for the position based on the merit principle using fair and uniformly administered procedures. We commend the Department of Human Resources for their commitment to the impartial selection of individuals for public services by means of competitive tests which are fair, objective, and practical in serving the people of Hawaii County. We also thank the department for their post audit progress report on hiring practices. See Attachments 1 — 1.5. In closing, we welcome County employees and members of the public to address concerns over the misuse of County resources or position through our fraud and whistleblower hotlines. Often, the improper use of government resources or positions is discovered thanks to employees and the public. Submit confidential tips to deter improper conduct by: Fraud and waste hotline: (808) 480-8213 Whistleblower hotline: (808) 480-8279 Email: concerna-hawaiicounty.gov Fax: (808) 961-8905 Mail: Office of the County Auditor, 120 Pauahi St., 309 Hilo, HI 96720 To access complaints directory, visit: https://www.hawaiicounty.gov/departments/office-of-the-county-auditor/whistleblower Submit a claim: https://www.hawaiicounty.gov/our-county/legislative/office-of-the-county- auditor/inquiry-and-complaint/intake-form 17 1 Conclusion Chapter 3 Management Response Mi%hrz L).JZ06 T..K.[,r-irUu ILnL A&W County of HawaUi Department of Hi man Resources AwpuM Center.101 --t.ti--2 1 967,','-t.J6! i February 1,2022 To: Tyler I Benner,County Auditor From: Waylen L.K.Leopoldino,Acting Director of Human Resources Subject: Management's Response to the County of HawaiY5 Denartment of Human Resources Hiring Frit J4.:es Fc)!low--p -!,-wort No. 2C:2-01 The DepCir-ricrt c-°0,ricr) -: .,-, 1•�Kril:g Nrq-,ticcs '610w o;� A.1idit kcco-. d3tc,,cl Jar,-ciry ",.,22. Our cz-r t--i- i In lhe 1-tecri'v 31 t-t I Sy0t?m an.:. a I appllc:;Lla laws,pcic f., Vr ---Ddu,es. a,,, co lect c bai rjcirinc -;f,.'cndida-cs for public servi�:e' I�o 11-10;Ret iu'tlr'ew & -xc3mi a'i:Dn Divisi:;n has mci,.a m—it c.-xv s-i•dcs n riprovingits as ret ectpd it t,ie i-W,vflic.n ci-LDoded arc, tesrtd(J,ninj 'h-s-ecent follow- up wi '1w Airing 11acticcs Aud t. ci-e--::.rnm fted to cv to:-vvcr , k-)uv),,�7riue its efforts to improve and slrcamire cur ti.;rig l.-,vV,fair,and ulJormly odministerea procedures, D-I P 2'4'! -:C^nfir-e to C ._i' ' 'A I 11--�:c-ilcr I rit utilize C11 I ', c,,we -,:i t iheirco,v ::--;i -cl 1) -o compJance. Finally,wew- -:,':orate best practices and prohibited hiring :::o i,,. �:,canc.j r procadures as we have positioned ourst k.;-. 1,: -.r; L';riority given 10 strengthen our internal controls where necessary. We are grateful for your collaborative approach to this follow-up audit and look forward to cotrifinuing our partnership with the Office of the County Auditor, WLKLgy I lawaii Cowity is an Equal Opymumity PrNider oxg Em#oyer. Management Response 1 8 This page intentionally left blank. Chapter 4 Attachments C[.4 Y;ry'e +ii 71L'.q -Deceit of jfin gn RGS UTICCS Inter,Office Nemo Tom; Bonnie Nims, tegisfofive Auditor -Ram William V- Brilhonte, Jr-, Director of Human Resources 7)Aq- . November 14, 2018 5VBjE(_7i Post Audit Progress Report on Hiring Pruc'_.Ces for 2018 -I-e fcllcw n,, s a c-ogress repor-t on our department`s efforts in improvement of the Cuunly's hiring practices for the year 2018: 1 j -h? process for the rete-ra cr - :vves for the •c-;is-•.^tion recruitmenfs fC-s-cd'an,'(a•a•.-Td5.ocpc• I. 1 :117.. II, Par.< (-::retoker 1, etc.) was ir•ir:•Ier,er-e d .:1 -1urie_ 11C 1,5. The -e.. pro ccss irriaIves our department ccrdu,-h,-j a '7n"m- n,-:nc:ra :. r)f I1_T bel c3r'.•:1 •r.atchingthe numbers to the alph,abel (:(.1 .)•.;Fr cal n. e . va loble to t•-e distdct where the vacancy exists- rel, nomcs a'�' rc r': -c -he hiring i'l.a Fportrt enf and in turn,the dcpc�r:,I-run- •TIVSI ;:Fnc;l cl °Fr it the electronic recruitment system to then applicants for ar n-cr.;v.vv. --is random generation process occurs for each vacant registr[ati()R- r:•:-)sili_n. The purpose of this new process is to provide a fair and transparer-I opportunity for those on the registration list to have a chance of being interviewed. 2) We conducted the fo4owing training sessions pertaining to the hiring process: . "How to Conduct an Effective.fab Interview"—7 sessions-, 152 employees attended, "Skill Set Development and Evaluation" -3 sessions, 40 employees attended, "Developing Interview Questions"—2 sessions. 42 employees attended "Developing Assessment Exercises"—2 sessions-,35 employees attended. 3) Development of HR Best Practices and HR Organ zotionol Goals (enclosed)_ 4) timplernent€:d guidelines and process for the audit of interview packets. interview packets were audited for the following departments initially audited by the legislative Avditor: Environmental Management, Finance, Parks & Recreation, and Public Works. HavAN C'aualy fs an Management Response 1 9 Bonnie Aims: Legislative Auditor November 14,2018 Page 2 of 2 5) Monitoring of the referred lists in NeaGev continuesw'th end of month reminders to oar deportrnents of referred lists scheduled to expire the following mor-tn; req„e•stirig exfensiom of the referred lists when their deporfrnf-nO c_ci-)nct make a selection within the 90doy period including justification fo�the roclucst;followving up with departments on their mandatory docuw,erilo7iori of referred list actions;reporting of hire,s or) a timely and accurate basis.. 6) Development of a whistleblower policy and program is under review with ongoing discussions with various resources. Thank you for the opportunity to provide a post-audit progress report for 2018. Enclosures xc: Harry Kim,Mayor Wil Okabe,Managing Director Valerie Poindexter, Council Chair David Nohvino. Chair, Merit Appeals Board 2 0 Attachment 1.1 October,2018 COUNTY OF HAWAII HUMAN RESOURCES BEST I'RAC7ICE5 Huwai"i County ("County") is an Equal CJpportunily Provider and Employer. The County does not discriminate in employment. provasior �]I services, and access to programs and facilities in accordance wi'I l-ciercI and stuIe iaws- As leaders in rhe;hr,mcir r,sc t r; ^, r.°f,•::ir::-n for the (.c�tan* . c.t:r as c;r, the core values of the merit syste-n anc t;,,Djgh oir oversight, the fo:lov.,ir g :)rct7-(7 as shall be adhered to with integrity and foirriess, The c:dministration of the County humor~ reSourc e, progrm h l:c.sed on the following p^rsciples purs.aant to Section 76-1, Havwa 'i 5: + Equal oL; pc>:•l•unily fo,all in cornaliance with ca1 l av6 oion-bil:bg discrim nation. No pp,srn shall be discr-n.17noted against in examinuk3n, vppc:i"I`rr':eni. reinsta icmcrt,rccraployment, promotion, -rarsfor. dc..-mo. f0-i. or removal,with respect -c any position when the warts may be the person wi•l~out hazard or danger to the heo th cno sc'e--° of t,7e pe•t^,, or othc s. • impartial selection of indiviVuta-s fo, public sery ce by means of compeii-ve to{i{ vvhMch are fair, objective,and practical. • Incentives for competent employees within the service,whether financial or promotional opportunities and other performance based group and individual owords that encourage continuous improvement to achieve superior p,.--rformGnce, • I'e arc:nable job security for competent employees and discharge of unnecessary :::-i--,e t-ici::n-c rployees with the right to grieve oncl appeal. • Eqjcl p,v...; fo,aclial work shall apply between cases in the sarr►e bargaining unit ar7-.-ng ju,•isd'ciions far those classes delefarrined to be equal through sysfematic class i cation of positior-15 based an objective criteria orad odequote job evaluation,unless it has been agreed 1n accordance with Chapter 89,HRS.to negotiate the repricing of classes. Harmonious and cooperative relations between government and its employees, including employee cxgonizations representing them,to develop and maintain a wedtrained, efficient, and productive wad farce that utilizes advanced technology to ensure efficient effective government operations and delivery of public services. 1 Attachment 1.2 12 1 October,2018 The merit systern principle is the foundation of our human resources dechlons. As such, departments and agencies shall ensure compliance with the followfng human resources best practices. 1. Chris specifications and position descriptions are reviewed prior to filling a vacant pobition and amendments are made accordingly. 2. Classification of positions is based on operational needs. Focus on the position and not the person. Guidance 4 sought from the ClassAcotion&Pay Division for non-routinG-position changes such as allocations, permanent reallocationsr transfers,reorganizations, etc. 3. ConfinuoLis recruitment Improvements arecansidere:a c.-d .r-pe-rented to str arnline the recruitment process so that positions are frlied in the most fair, economic. efficient, and expeditious manner possibje_ 4. TroirJi,'rg is cenducIed to employees on proper job interviewing. skill set dove opment -,in€t ev-:a t.noon, and Mc .-,evetopment of effective interview questions arci as,t~r 7~^ t c:x�.ris_{ {c: tra- each department and agency's prc-ess is'oir, ir~n:-,-: -fal. a-,ic reke--;crit io the �c—ition_ 5. Der.ca i-y,, and agencies' interview and selection procedures are reviewed and oL.d" :;f of^rview pa,-<nts are conducted by DH R. 6. Consid iVruli:)r o" u v.cra.ified applicants refelr'ed to a department or agency by DHR withcmit cvr.y �-,, er'erence from other persons.or5oufces. 7_ Recuse oneself when c co-M ct exists or to avoid the appearance of any impropriety,especially when immediate family members or business partners are involved. B. Utilize a whole-person oporooch "o cssii�ssrnent road sele_'ion of quolffied applicants for the fi'l-ng 01 Ca Civi. se,vice position, App�opriaie pe--rsr:rnel nssessrment to015 care ufilized in a purposeful manner. 9. Selection are impartial and are based on an applicant's fitness, kncve ecc6. ski ls, and ability to perform the essent:cl duties of the position. 10. Reeasonab°a racccrnmodation is prc- ded gi�-:Ff:ed applic--nt{ or eirploVeesr as appropriate `_, *he si7L;at;.=:r, o .era:;e t, ,, perk�,,r f�j pCrliCi;:L.°e irl 1 F job application prc c&3s. to i,iv - a e-i cry beriefitS and prlV-Ilege£ C-.- e-r"'i::t "-I—,I' C.0 .J:J s^ -1-,y C- C`.rl-]y{-~t t7';" -Fc.r c'.'r'!t-iout zi ai5aGil ty. 2 2 2 1 Attachment 1.3 October,2018 1 l, The confider-i.-jlity of appliconrt identilie5, opplicotiom, examination rnateritils, interview qur_.�,�-:-is, assessment exercises, personnel forms, and other related PSR nformotion u ! _.c' ;;i ..i maintained at all times. 12. Records of employment-related ocflvifies. induclIng exam[nation staiistic�and interview and asses`ment scores,are accurate and ore retained in accordance with each department and agency's record retention schedule_ 3 Attachment 1.4 12 3 October,2018 HIR ORGANIZATIONAL GOALS 1. Develop and mointoin c sY.- ,trong r_. , :-:r :,Iior�o Culture t)ased on the fallowing: smor' firg of applicants • p­xxliv..-• ni-,� p-c so7nel development • jcb and review + a reasonable and fo'r benefits program. 2. Develop and mafnlain integrity, good meal conduct,and concern for the public interest based on the following-, • honesty • integr1y • professiarualism • ethics 3. Develop and maintain posit-ve empl>yee-employer redatfonships fostering abetter work environmenl and pry....'r''r-rp efficierit service to the public through the following: • open co:'n•rL harmonious,.,;<,,'-,' ._; Iionships • mutuol respect and trust fair a-id consistent treatment 2 4 1 Attachment 1.5