Report 2012-603 All Recommendation Responses

Report 2012-603: High Risk Update: State Agencies Credited Their Employees With Millions of Dollars Worth of Unearned Leave (Release Date: August 2014)

Recommendation for Legislative Action

The Legislature should amend state law to clarify the statute of limitations for recovering the overpayment of leave credits. For example, it could require state agencies to provide notice to the employee that he or she was inappropriately credited leave hours within three years from the date the employee was credited the hours or three years from the date the employee separated from state service and, in instances of fraud, three years from the date the State discovered the fraud.

Description of Legislative Action

Senate Bill 848 (Chapter 35, Statutes of 2016) provides that an administrative action shall not be taken by the State to recover an overpayment by an employee unless the action is initiated within three years from the date of overpayment. If an overpayment involves leave credits, the date of overpayment is the date that the employee receives compensation in exchange for leave erroneously credited to the employee. For purposes of this provision, leave hours are considered exchanged for compensation in the order they were credited.

California State Auditor's Assessment of Annual Follow-Up Status: Legislation Enacted

Description of Legislative Action

AB 1753 would have prohibited the State from taking that action unless the action is initiated within three years from either the date the employee separates from state service or, when the State alleges that the employee obtained the overpayment as a result of fraud, embezzlement, or falsification, the date the State discovers the fraud, embezzlement, or falsification. This bill was not enacted.

California State Auditor's Assessment of Annual Follow-Up Status: Legislation Proposed But Not Enacted

Description of Legislative Action

Legislation has not been introduced to address this recommendation.

California State Auditor's Assessment of Annual Follow-Up Status: No Action Taken

Description of Legislative Action

AB 1753 would have prohibited the State from taking that action unless the action is initiated within three years from either the date the employee separates from state service or, when the State alleges that the employee obtained the overpayment as a result of fraud, embezzlement, or falsification, the date the State discovers the fraud, embezzlement, or falsification. This bill was not enacted.

California State Auditor's Assessment of 1-Year Status: Legislation Proposed But Not Enacted

Description of Legislative Action

Legislation has not been introduced to address this specific recommendation

California State Auditor's Assessment of 60-Day Status: No Action Taken

Recommendation #2 To: Human Resources, California Department of

To correct the erroneous leave hours we identified in our analysis of the leave accounting system, CalHR should work with the state controller and all state agencies under its authority to review and take the appropriate action to correct the errors by January 2015.

Annual Follow-Up Agency Response From August 2018

CalHR has completed this recommendation and worked with departments to ensure they took appropriate action to address the errors identified by the CSA. CalHR has provided instruction to correct the errors that may lawfully be corrected. Some errors identified in the CSA's report were unable to be corrected (e.g., overpayment occurred outside the statute of limitations or the department is unable to verify the error). All 84 departments report that they have corrected the errors they are lawfully able to correct.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

We reviewed CalHR's tracking spreadsheet for the errors we originally identified and found that all associated departments have finalized their corrective actions.

Annual Follow-Up Agency Response From August 2017

CalHR continues to work with departments to ensure they take appropriate action to address the errors identified by the CSA. CalHR has provided instruction to correct the errors that may lawfully be corrected. Some errors identified in the CSA's report are unable to be corrected (e.g., overpayment occurred outside the statute of limitations or the department is unable to verify the error). Currently, 82 of the 84 affected departments report that they have corrected the errors they are lawfully able to correct. CalHR will continue to assist the remaining departments as needed.

California State Auditor's Assessment of Annual Follow-Up Status: Partially Implemented

Although CalHR has made progress correcting erroneous leave hours, there are still a large number of errors at two departments. CalHR should continue to work with these departments to resolve the errors.

Annual Follow-Up Agency Response From August 2016

CalHR continues to work with departments to ensure they take appropriate action to address the errors identified by the CSA. In addition, CalHR has maintained regular contact with each department to ensure continued actions are taken as appropriate. Some errors identified in the CSA's report are unable to be corrected (e.g., overpayment occurred outside the statute of limitations or the department is unable to verify the error). However, CalHR has provided instruction to correct the errors that may lawfully be corrected. Currently, nearly 80% of affected departments report that they have corrected the errors they are lawfully able to correct. CalHR will continue to assist the remaining departments as needed.

California State Auditor's Assessment of Annual Follow-Up Status: Partially Implemented

Although CalHR has made progress in implementing our recommendation, there are still multiple departments that need to correct errors. Therefore, we do not consider this recommendation fully implemented.

1-Year Agency Response

CalHR worked with the State Controller and provided instructions to all affected agencies on how to confirm and take appropriate action to correct the errors identified by the CSA. CalHR has also requested agencies to update CalHR of its progress in reviewing and correcting errors. Some errors identified in the CSA's report are unable to be corrected by the affected agency (e.g., overpayment occurred outside the statute of limitations or the agency was unable to verify the error). However, CalHR has provided instruction to agencies to correct the errors that may lawfully be corrected, and will continue to assist each affected agency as needed

California State Auditor's Assessment of 1-Year Status: Partially Implemented

6-Month Agency Response

CalHR and the State Controller's Office have provided instructions to affected departments on how to research and take appropriate action to correct the errors. CalHR continues to provide guidance to departments that have yet to complete their corrections, and will be providing guidance on a monthly basis until all appropriate action has been taken.

California State Auditor's Assessment of 6-Month Status: Partially Implemented

60-Day Agency Response

CalHR is working cooperatively with SCO on this recommendation. CalHR developed and provided initial instructions to affected departments to begin researching the errors identified by the State Auditor's Office. Starting on October 24, 2014, the SCO will share the erroneous leave transaction data provided by the State Auditor's Office with affected departments. CalHR expects to meet the January 2015 implementation for this recommendation.

California State Auditor's Assessment of 60-Day Status: Partially Implemented

Recommendation #3 To: University, California State

To correct the erroneous leave hours we identified in our analysis of the leave accounting system related to the CSU, CSU's Office of the Chancellor should work with the CSU campuses to review and take the appropriate action to correct the errors by January 2015.

1-Year Agency Response

The data we received from the California State Auditor that listed the erroneous leave hours included 797 potentially affected employees. Once we determined that many items were not actually erroneous and after applying other factors such as statute of limitations timelines and cost/benefit parameters, ultimately, we concluded that leave balances for only 35 employees (four percent of those initially identified) required adjustment. Further, eight of those employees have since retired. The total dollar value of all the adjustments was $39,517.68. The collective bargaining agents whose respective members were affected were notified and an official (technical letter) communication was distributed by our systemwide Human Resources office on May 22, 2015 to all campuses. The technical letter contained instructions for the relevant campuses to notify the affected employees and make the necessary adjustments for the validated erroneous leave hours.

While we did not track the staff time that was required to review the data, establish validation procedures, and implement adjustment protocols, it should be noted that it took considerable time and effort, at both the Chancellor's Office and the five affected campuses, to accomplish this effort.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

After applying factors such as statute of limitations, the California State University stated that it was able to recoup nearly $40,000 in erroneous leave hours. This amount does not include the value of erroneous sick leave hours which the California State University reported to the California Public Employees Retirement System for adjustment. Because the State converts unused sick leave to state service credit upon an employee's retirement, these errors might have improperly increased the State's pension payments to the employees. Further, the California State University notes that it took considerable time and effort to correct the errors we identified. It is the California State University's responsibility to accurately account for its employees' leave.

6-Month Agency Response

We have provided the list of erroneous leave hours to each of the affected campuses and they have begun verifying the information. In addition, our Office of General Counsel is finalizing its review of the proposed guidelines for resolving the identified errors. The proposed guidelines address statute of limitations and other recoupment considerations, including cost/benefit parameters. We anticipate resolution of the identified errors to be completed by the end of March 2015. However, many of the affected employees are represented by unions and therefore, the planned approach may have collective bargaining implications that need to be resolved prior to initiating reconciliation of the validated erroneous leave hours.

California State Auditor's Assessment of 6-Month Status: Partially Implemented

60-Day Agency Response

We received the list of erroneous leave hours and we are reviewing the data. As noted in the audit report, some of the transactions date back to 2008. In addition, some of the individual transaction errors are as small as .001 hours and total less than one hour per person. We are conferring with our Office of General Counsel and others in an effort to determine any statute of limitations or other recoupment considerations, including cost/benefit parameters for resolving the identified errors.

California State Auditor's Assessment of 60-Day Status: No Action Taken

Recommendation #4 To: Controller's Office, State

To improve the accuracy of information in the leave accounting system and to ensure that agencies do not improperly credit employees with leave in the future, the state controller should implement additional controls by June 2015 to prevent the leave accounting system from processing the types of inappropriate transactions we identified in our statewide electronic analysis. For example, it could develop cost-effective controls in the leave accounting system that would prevent employees from receiving annual leave and sick leave during the same pay period.

Annual Follow-Up Agency Response From August 2019

We are pleased to report the remediation of a significant system flaw that allowed employees to accrue annual leave and sick leave concurrently. This required several years of complex analysis to identify causes of the erroneous leave accruals and to program the fix. We have tested this system change and are confident that it will substantially reduce the potential for future errors.

Since the audit, the CLAS team continues to monitor reports monthly to ensure that employees are not receiving dual accruals. We have continued to monitor other areas of concern identified in the audit, to ensure that our controls are still effective. As stewards over CLAS, we are continuing to monitor and identify any remaining system weaknesses and develop controls to prevent future errors. We consider this recommendation fully implemented.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

Annual Follow-Up Agency Response From August 2018

Our endeavor to prevent employees from accruing both Annual Leave and Vacation or Sick Leave continued this year without resolution. The CLAS team's year-long quest to fully analyze relevant system functions uncovered multiple weaknesses that contribute to this problem. We submitted a work order, and the programmer is analyzing the various processes surrounding this issue. The fix will take months of analysis and reprogramming, yet we believe the related system flaws can be patched before June 2019. We anticipate that next year we will report a successful conclusion to this lengthy endeavor.

California State Auditor's Assessment of Annual Follow-Up Status: Pending

Annual Follow-Up Agency Response From August 2017

Since our previous report, the SCO's CLAS Unit has made several changes to prevent errors in keying Holiday Credit hours. We recently eliminated the generic transaction, and replaced it with separate transaction codes for specific ways to earn Holiday Credit (e.g., working on a holiday, holiday on Saturday, holiday on regular day off). Departments will begin keying these new codes for September 2017 leave.

We have not yet completed the complex changes necessary to ensure employees cannot accrue both Annual Leave and Sick Leave simultaneously. This endeavor has proven more difficult than expected. However, we are confident that this will be completed by Summer 2018. The CLAS Unit produces a monthly report of employees accruing both Annual and Sick Leave, and ensures such errors are corrected promptly.

California State Auditor's Assessment of Annual Follow-Up Status: Pending

Annual Follow-Up Agency Response From October 2016

Since our last report, the SCO's CLAS Unit has (1) updated system controls to prevent Personal Holiday accruals for ineligible employees; (2) implemented a system audit and corresponding warning message to alert users when they are attempting to post any Earn transaction over 100 hours, over 80 hours for the CTO benefit, over 8 hours for the Excess Hours benefit, or over 30 hours for the Holiday Credit benefit; and (3) disabled the Earn transaction for benefits that no longer earn hours, such as the various Personal Leave Program and Furlough Hours benefits.

As stated in our previous report, we are continuing the complex effort of updating the CLAS system audits to prevent employees from accruing both Annual Leave and Sick Leave simultaneously. In addition, our effort to eliminate the transaction that is currently used to post duplicate Holiday Credit "earn" transactions will be completed by Summer 2017.

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

1-Year Agency Response

Our original proposal to modify our system to prevent employees from accruing both Annual Leave and Sick Leave simultaneously was found to be not feasible. Therefore, we have begun the process of developing new business requirements for updating the leave accounting system's audits to prevent dual accruals from posting for these benefits. This complex effort should be completed by Summer 2017. In the meantime, all employees who were accruing both Annual Leave and Sick Leave have been identified and the Sick Leave accruals have been turned off. Also, an exception report has been created, and will be made available to the departments by Fall 2015. The SCO is now monitoring for any dual accruals on a monthly basis, and making necessary corrections. In addition, we are making other system modifications for the Personal Holiday and Holiday Credit benefits, to prevent accruals from posting for ineligible employees, and to automatically calculate the "earn" transaction amount for employees who work on a holiday. However, we are awaiting CalHR policy clarification regarding both Personal Holiday and Holiday Credit. System modifications for Personal Holiday and Holiday Credit that may be made without CalHR's input will be implemented between Fall 2015 and Spring 2016, respectively. In addition, we are currently developing a system change in which the leave accounting system will warn users when they attempt to credit an employee with an unusually high amount of earned hours. Users must validate the amount before completing the transaction. This warning message will be implemented by Summer 2016.

California State Auditor's Assessment of 1-Year Status: Pending

6-Month Agency Response

The SCO is working to identify and analyze potential system enhancements with the goal of preventing keying errors. For example, we are considering whether pop-up warning screens that alert users when they have keyed an unusually high earn amount will be effective. Another option that we are analyzing is the addition of limitations to the number of hours a user can key for high risk transactions for leave types such as Holiday Credit (HC) and Compensated Time Off (CTO). We are also continuing to investigate the most effective method to prevent employees from receiving annual leave and sick leave concurrently; whether improved automated controls are possible, as well as implementation of earlier detection through reporting on employees that are inappropriately accruing both benefits. We are actively working toward meeting the June 2015 deadline for this recommendation.

California State Auditor's Assessment of 6-Month Status: No Action Taken

60-Day Agency Response

We have begun the planning and analysis to determine if a cost-effective system change to prevent employees from receiving annual leave and sick leave concurrently is possible. We are also analyzing other controls we can implement to prevent errors, based on the information in the report. We expect to be able to meet the June 2015 deadline for this recommendation.

California State Auditor's Assessment of 60-Day Status: No Action Taken

Recommendation #5 To: Controller's Office, State

To improve the accuracy of information in the leave accounting system and to ensure that agencies do not improperly credit employees with leave in the future, the state controller should work with CalHR to establish procedures by January 2015 for updating the criteria it uses to produce the monthly exception reports to ensure that the criteria reflect changes in state law and collective bargaining agreements.

6-Month Agency Response

With concurrence from CalHR, we have formalized procedures for updating the criteria used to produce our monthly exception reports. We are providing documentation of the procedures with this report.

California State Auditor's Assessment of 6-Month Status: Fully Implemented

60-Day Agency Response

We are working with CalHR on establishing procedures for updating the criteria used to produce our monthly exception reports. We will meet the January 2015 deadline for this recommendation, and will provide documentation of the procedures at that time.

California State Auditor's Assessment of 60-Day Status: No Action Taken

Recommendation #6 To: Controller's Office, State

To improve the accuracy of information in the leave accounting system and to ensure that agencies do not improperly credit employees with leave in the future, the state controller should, using criteria provided by CalHR, develop monthly exception reports that identify transactions in the leave accounting system that are inconsistent with the guidelines established in state law and collective bargaining agreements, such as instances in which state employees receive too many personal holidays or too much holiday credit. By June 2015 begin providing each state agency's human resources management with the transactions identified in the exception reports for review and correction as necessary.

Annual Follow-Up Agency Response From October 2016

Since our last report, the SCO's CLAS Unit has (1) modified the existing High CTO, Holiday Credit, and Excess Hours report to include high earned amounts posted to any leave benefit, and renamed it as the Earned Benefit Audit Report; (2) created and released the new Retroactive Earned Benefit Audit Report, which includes data between February 2011 and December 2015; (3) created and released the Annual Leave and Sick Leave Report, which includes retroactive data, to assist departments in correcting erroneous Annual Leave and Sick Leave accruals; and (4) created a new Personal Holiday Audit Report, which identifies Personal Holidays posted for ineligible employees, and instances where both Personal Holiday and Holiday Credit are posted in the same leave period. Eliminating the transaction used to post duplicate Holiday Credit "earn" transactions will be reported in response #4 with the status of other CLAS system updates. While the SCO will continue to monitor and modify our reports to ensure they provide valuable information, we consider this recommendation fully implemented.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

1-Year Agency Response

We completed three of four planned reports and have begun developing additional reports to ensure leave records are accurate. First, in May, per CalHR's request, we reduced the hours in the existing High CTO, Holiday Credit, or Excess Hours Report from 100 hours to 80 hours for CTO, 30 hours for Holiday Credit, and 8 hours for Excess. We plan to further refine this monthly report by including errors from previous months until they are corrected; the current report includes transactions for the prior leave period only. Second, as requested by CalHR, the SCO made the Leave Activity and Balance (LAB) Report available for download from ViewDirect to Excel. Third, an exception report has been created to locate when both Annual Leave and Sick Leave accruals are received, and will be made available to departments by Fall 2015. We are continuing to develop a report to identify instances in which employees are credited with Holiday Credit in a leave period that has no holidays (i.e., April, June, August, and October); this report will be available by Fall 2015.

In addition to exception reports, the SCO plans to eliminate the transaction that is currently used to post duplicate Holiday Credit "earn" transactions. Also we are developing separate tracking for employees who work on a holiday. These system updates will be done instead of an exception report, which will bring more clarity to the reason hours are being posted. This effort will be completed by April 2016.

California State Auditor's Assessment of 1-Year Status: Partially Implemented

6-Month Agency Response

We are making good progress on this recommendation and are working to develop several new exception reports. CalHR has requested reports to identify when a record has more than one earn transaction for a leave type (such as when there is both a Holiday Credit earn as well as a earn in lieu of Saturday Holiday in the same leave period), when a record has a Holiday Credit earn transaction in a leave period that doesn't have any holidays (such as April, June, August, and October), and when a record has an inappropriate concurrent accrual for Annual Leave and Sick Leave. We are currently creating the criteria for these reports, and are on track to have them available to departments by June 2015. Also, CalHR has provided updated criteria to improve the value of two previously implemented reports. They have requested that we reduce the hours in the existing High CTO, Holiday Credit, or Excess Hours Report from 100 hours to: 80 hours for CTO, 30 hours for Holiday Credit, and 8 hours for Excess. We have validated that the criteria is appropriate and are working to update the report and put it into production by June 2015. They also requested that we modify the existing Leave Activity and Balance (LAB) Report to allow download capabilities from ViewDirect to Excel. We are currently testing a new application that will accomplish this, and are on track to make it available to departments by June 2015.

California State Auditor's Assessment of 6-Month Status: Partially Implemented

60-Day Agency Response

We have already created several monthly exception reports that we share with agency human resources management for review and correction as necessary. We are currently analyzing the feasibility and value of other potential exception reports, beginning with reports of extra personal holidays and excessive holiday credit. At this time, we expect to be able to meet the June 2015 deadline for this recommendation.

California State Auditor's Assessment of 60-Day Status: No Action Taken

The State Controller's Office's response references exception reports that we discuss on page 27 of our report. The State Controller has not developed any new exception reports in response to our recommendation.

Recommendation #7 To: Human Resources, California Department of

To ensure that state agencies accurately account for their employees' leave benefits, CalHR should consolidate guidance by January 2015 regarding the appropriate amount of leave that employees should earn each month and provide these criteria to the state controller to use when developing the leave accounting system's monthly exception reports. For example, CalHR should identify the number of holiday credit hours that employees covered by each collective bargaining agreement should receive for working on a holiday.

Annual Follow-Up Agency Response From August 2018

As reported last year, CalHR has provided necessary criteria to the State Controller's Office regarding the appropriate amount of leave employees should earn each month.

CalHR has completed guidance covering employees who work on a holiday. Policy 1712 - Holiday Guidance was published to CalHR's Online Human Resources Manual on November 30, 2017.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

We reviewed CalHR's published guidance and believe it fully implements our recommendation.

Annual Follow-Up Agency Response From August 2017

As reported last year, CalHR has provided necessary criteria to the State Controller's Office regarding the appropriate amount of leave employees should earn each month.

CalHR has drafted guidance covering employees who work on a holiday. Upon final approval, and consistent with the Ralph C. Dills Act and other applicable laws, CalHR will issue notice to state employee bargaining representatives by September 22, 2017. Bargaining representatives will thereafter have an opportunity to meet and confer over the holiday guidance. After CalHR has met its obligations under applicable labor laws, it will post the guidance in its Online HR Manual.

California State Auditor's Assessment of Annual Follow-Up Status: Partially Implemented

Annual Follow-Up Agency Response From August 2016

As reported last year, CalHR has provided necessary criteria to the State Controller's Office regarding the appropriate amount of leave employees should earn each month.

In an effort to clarify state employee holiday guidelines, CalHR and state employee representatives discussed or will be discussing holiday-related issues during the state's ongoing negotiations for successor collective bargaining agreements. Once negotiations are complete and contracts have been ratified, CalHR will finalize and issue holiday guidance consistent with the Ralph C. Dills Act and other applicable law.

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

1-Year Agency Response

CalHR has finalized guidance for annual leave, vacation, sick leave, and personal holidays, and has provided the guidance to the State Controller's Office.

CalHR has nearly completed drafting consolidated guidance regarding state employee holidays. Before providing the guidance to state agencies, CalHR must determine the appropriate next steps consistent with the Ralph C. Dills Act. Once finalized, and after CalHR has fulfilled its obligations under governing labor law, the guidance will be provided to state agencies and the State Controller's Office.

California State Auditor's Assessment of 1-Year Status: Partially Implemented

6-Month Agency Response

CalHR has now finalized guidance for annual leave, vacation, sick leave, and personal holidays. This guidance consists of leave summaries for each bargaining unit with detailed instructions on accrual and usage. We will also provide the SCO a matrix to assist in developing the leave accounting system's monthly exception reports. CalHR expects to provide the criteria to the State Controller's Office within the next 45 days.

CalHR has also drafted guidance regarding state holiday policies, and is currently evaluating ways to promulgate its policies in a manner consistent with CalHR's obligations under the Dills Act and other governing labor law.

California State Auditor's Assessment of 6-Month Status: Partially Implemented

60-Day Agency Response

CalHR has completed the review of the state's leave policies addressing annual leave, vacation, sick leave, holiday leave and other types of leave provided to state employees. CalHR has developed criteria for calculating leave that is currently under internal review. CalHR expects to meet the January 2015 implementation for this recommendation.

California State Auditor's Assessment of 60-Day Status: Partially Implemented

Recommendation #8 To: Human Resources, California Department of

To ensure that state agencies accurately account for their employees' leave benefits, CalHR should work with the state controller to establish procedures by January 2015 for updating these criteria to ensure that they reflect any changes to state law and collective bargaining agreements.

6-Month Agency Response

CalHR developed procedures for communicating with the State Controller's Office when there are changes to state law and collective bargaining agreements.

California State Auditor's Assessment of 6-Month Status: Fully Implemented

60-Day Agency Response

CalHR is currently reviewing internal procedures for communicating with the State Controller when there are changes to state law and collective bargaining agreements. CalHR expects to meet the January 2015 implementation for this recommendation.

California State Auditor's Assessment of 60-Day Status: No Action Taken

Recommendation #9 To: Human Resources, California Department of

To ensure that state agencies accurately account for their employees' leave benefits, CalHR should establish general parameters and issue guidance to state agencies by January 2015 on how to account for the leave hours for employees who work alternate work week schedules.

Annual Follow-Up Agency Response From August 2017

CalHR has completed guidance describing general parameters regarding how state agencies should implement and maintain alternate work week schedules for their employees. The guidance was published to CalHR's Online HR Manual on July 25, 2017.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

Annual Follow-Up Agency Response From August 2016

CalHR has completed guidance describing general parameters regarding how state agencies should implement and maintain alternate work week schedules for their employees. The guidance will govern how employees request and maintain alternate workweek schedules, and instruct agencies on the proper maintenance of leave hours for employees on alternate workweek schedules. Prior to issuing the guidance, CalHR must determine the appropriate next steps, consistent with the Ralph C. Dills Act, including how the guidance will be impacted by ongoing collective bargaining between the state and state employee representatives. After CalHR has fulfilled its obligations under governing labor law, the guidance will be provided to state agencies.

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

1-Year Agency Response

CalHR has completed guidance providing general parameters regarding how state agencies should implement and maintain alternate work week schedules for their employees. The guidance will govern how employees request and maintain alternate workweek schedules, and instruct agencies on the proper maintenance of leave hours for employees on alternate workweek schedules. Before providing the guidance to state agencies, CalHR must determine the appropriate next steps consistent with the Ralph C. Dills Act. Once finalized, and after CalHR has fulfilled its obligations under governing labor law, the guidance will be provided to state agencies.

California State Auditor's Assessment of 1-Year Status: Partially Implemented

6-Month Agency Response

CalHR has drafted a comprehensive policy that provides guidance for administering alternate work week schedules for Work Week Group 2 employees and for Work Week Group E/SE employees. The policy will govern how employees request and maintain alternate work week schedules, and will instruct departments on the proper maintenance of leave hours for employees on alternate work week schedules. CalHR is currently evaluating a variety of options to promulgate this policy consistent with the Dills Act and other governing labor law.

California State Auditor's Assessment of 6-Month Status: Partially Implemented

60-Day Agency Response

CalHR has drafted a comprehensive policy addressing alternate workweek schedules that is currently being reviewed. The policy will govern how employees request and maintain alternate workweek schedules, and will instruct departments on the proper maintenance of leave hours for employees on alternate workweek schedules. Subject to CalHR's obligations under the Dills Act, CalHR expects to have the finalized policy ready for distribution by January 2015.

California State Auditor's Assessment of 60-Day Status: Partially Implemented

Recommendation #10 To: Human Resources, California Department of

To ensure that state agencies accurately account for their employees' leave benefits, CalHR should provide additional guidance to state agencies by January 2015 on interpreting the provisions of the collective bargaining agreements related to the amount of leave employees earn. For example, CalHR could provide scenarios to illustrate the number of hours employees should earn under common circumstances.

Annual Follow-Up Agency Response From August 2018

CalHR has developed and made available consolidated guidance regarding state employee leave benefits, including annual leave, vacation, sick leave, and holidays. The guidance summarizes the leave benefits set forth in each collective bargaining agreement. The guidance was posted within HR Net on August 16, 2016.

CalHR has completed guidance covering employees who work on a holiday. Policy 1712 - Holiday Guidance was published to CalHR's Online Human Resources Manual on November 30, 2017.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

We reviewed CalHR's published guidance and believe it fully implements our recommendation.

Annual Follow-Up Agency Response From August 2017

CalHR has developed and made available consolidated guidance regarding state employee leave benefits, including annual leave, vacation, sick leave, and holidays. The guidance summarizes the leave benefits set forth in each collective bargaining agreement. There are 23 Leave Summary documents in total, each averaging 30 pages in length. There is one for each bargaining unit contract with the exception of Bargaining Unit 3, which required two summaries to separate the academic employees from the excluded employees. The guidance was posted within HR Net on August 16, 2016.

CalHR has drafted guidance covering employees who work on a holiday. Upon final approval, and consistent with the Ralph C. Dills Act and other applicable laws, CalHR will issue notice to state employee bargaining representatives by September 22, 2017. Bargaining representatives will thereafter have an opportunity to meet and confer over the holiday guidance. After CalHR has met its obligations under applicable labor laws, it will post the guidance in its Online HR Manual.

California State Auditor's Assessment of Annual Follow-Up Status: Partially Implemented

Annual Follow-Up Agency Response From August 2016

CalHR has developed and made available consolidated guidance regarding state employee leave benefits, including annual leave, vacation, sick leave, and holidays. The guidance summarizes the leave benefits set forth in each collective bargaining agreement. There are 23 Leave Summary documents in total, each averaging 30 pages in length. There is one for each bargaining unit contract with the exception of Bargaining Unit 3, which required two summaries to separate the academic employees from the excluded employees. The guidance was posted within HR Net on August 16, 2016.

California State Auditor's Assessment of Annual Follow-Up Status: Partially Implemented

Although CalHR has made progress on implementing the recommendation, it has not provided additional guidance to state agencies regarding holiday credit. Therefore, we do not consider the recommendation fully implemented.

1-Year Agency Response

CalHR has developed consolidated guidance regarding state employee leave benefits, including annual leave, vacation, sick leave, and holidays. The guidance will include information reflecting the leave benefits set forth in state employee collective bargaining agreements. Before providing the guidance to state agencies, CalHR must determine the appropriate next steps consistent with the Ralph C. Dills Act. Once finalized, and after CalHR has fulfilled its obligations under governing labor law, the guidance will be provided to state agencies and the State Controller's Office.

California State Auditor's Assessment of 1-Year Status: Partially Implemented

6-Month Agency Response

CalHR has now finalized guidance for annual leave, vacation, sick leave, and personal holidays. This guidance consists of leave summaries for each bargaining unit with detailed instructions on accrual and usage. These summaries will be posted on line to provide departments easy access. CalHR expects to provide this guidance to state agencies within the next 45 days.

CalHR has also drafted guidance regarding state holiday policies. This draft guidance includes scenarios which will illustrate the number of hours employees should earn under common circumstances. CalHR is currently evaluating ways to promulgate its policies in a manner consistent with CalHR's obligations under the Dills Act and other governing labor law.

California State Auditor's Assessment of 6-Month Status: Partially Implemented

60-Day Agency Response

CalHR has completed the review of the state's leave policies addressing annual leave, vacation, sick leave, holiday leave and other types of leave provided to state employees. CalHR has developed criteria for calculating leave that is currently under internal review. CalHR expects to meet the January 2015 implementation for this recommendation.

California State Auditor's Assessment of 60-Day Status: Partially Implemented

Recommendation #11 To: Human Resources, California Department of

To ensure that state agencies accurately account for their employees' leave benefits, CalHR should develop guidelines and procedures by January 2015 requiring all state agencies to review information their personnel specialists enter into any system they use to track state employees' leave transactions.

6-Month Agency Response

CalHR has released a policy memorandum (PML) directing departments to create internal review processes to ensure all leave accounting transactions are timely and accurately inputted.

California State Auditor's Assessment of 6-Month Status: Fully Implemented

60-Day Agency Response

CalHR has completed a draft policy that is currently under internal review. This policy will instruct departments of their responsibility to maintain accurate and timely leave accounting records and direct departments to create internal review processes to ensure all leave accounting transactions are timely and accurately inputted. CalHR expects to meet the January 2015 implementation for this recommendation.

California State Auditor's Assessment of 60-Day Status: Partially Implemented

Recommendation #12 To: Science Center, California

By February 2015 the Science Center should provide training to all of its personnel specialists on the number of leave hours employees earn for working on holidays.

Annual Follow-Up Agency Response From September 2017

The California Science Center worked with CalHR on holiday compensation training materials to clarify and ensure accurate calculations are used when keying transactions for employees who work on a holiday. In addition to training the Personnel Specialist and Senior Personnel Specialist, subsequent training was also provided for timekeepers department-wide. A Personnel Specialist File was established with references for correct calculations and codes. Likewise, a Timekeeper File was established on the Department's public drive to serve as an ongoing resource. The Science Center remains committed to ensuring the ongoing implementation of CSA's recommendation; and will continue to look to, and work with CalHR on training updates. The Department will also continue to internally audit, train and monitor personnel staff to ensure all leave transactions are keyed accurately.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

The California Science Center provided training to its timekeepers and personnel specialists between July and September 2017.

Annual Follow-Up Agency Response From September 2017

The California Science Center HR Department's Personnel Specialist and Senior Personnel Specialist worked closely with CalHR on holiday compensation and training material to clarify and ensure accurate calculations are used when employees work on holidays. Subsequent training was also provided for timekeepers department-wide and a Timekeepers File was set up on the Department's public drive as a resource. The Science Center remains committed to ensuring the ongoing implementation of CSAs recommendation and will continue to look to and work with CalHR on training updates. The Department will continue to internally audit, train and monitor personnel specialist staff to ensure all eave transactions are keyed accurately.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

The California Science Center provided training to its timekeepers and personnel specialists between July and September 2017.

Annual Follow-Up Agency Response From October 2016

The Department continues to work on the full implementation of the BSA recommendation and understands the proper allocation of collective bargaining contracts related to holiday leave credits and the California Leave Accounting System (CLAS). Our Personnel Specialist (PS) attended an information session held by CalHR and the State Controller's Office on how to administer the corrections identified in the CSA audit; and the PS has taken all other available training related to this issue.

We also continue to reach out to CalHR and the SCO on the status of additional CLAS training which will also address the application of the holiday credit. The Department will send its PS to this training as soon as it is offered.

The Science Center remains committed to fully implementing the CSA's recommendation and will continue to work with CalHR and the SCO.

Meanwhile, the Science Center will continue to internally audit, train and monitor personnel specialist staff to ensure leave transactions are keyed accurately.

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

1-Year Agency Response

The California Science Center will continue to work with the State Controller's Office (SCO) and CalHR on leave balance corrections pertaining to Holiday Credit.

The California Science Center will send staff to the SCO's Leave Accounting System Training (CLAS refresher training) as soon as it is available.

California State Auditor's Assessment of 1-Year Status: Pending

6-Month Agency Response

THE CALIFORNIA SCIENCE CENTER'S PERSONNEL SPECIALIST STAFF ATTENDED AN INFORMATION SESSION HELD BY CALHR AND THE STATE CONTROLLER'S OFFICE IN DECEMBER 2014 TO REVIEW HOW TO ADMINISTER THE CORRECTIONS IDENTIFIED IN THE AUDIT. THE DEPARTMENT REMAINS COMMITTED TO SENDING STAFF TO THE SCO'S LEAVE ACCOUNTING SYSTEM (CLAS) REFRESHER TRAINING AS SOON AS IT IS AVAILABLE.

AS OF MARCH 6, 2015 THE DEPARTMENT COMPLETED CORRECTIONS OF THE LEAVE BALANCE ACCOUNTS TRANSMITTED BY THE SCO AND CONTINUES TO WORK WITH THE SCO AND CALHR ON LEAVE BALANCE CORRECTIONS PERTAINING TO HOLIDAY CREDIT.

California State Auditor's Assessment of 6-Month Status: Pending

60-Day Agency Response

60-Day Status: The California Science Center is committed to having personnel specialist staff repeat the SCO's California Leave Accounting System Training or attend any CLAS refresher classes by or before February 2015. Re-training will allow staff to refresh and update their knowledge on various leave credit scenarios including the number of leave hours employees earn for working holidays. The Science Center continues to work with the SCO and CalHR regarding the correction of leave balances.

California State Auditor's Assessment of 60-Day Status: No Action Taken

Recommendation #13 To: Veterans Affairs, Department of

By February 2015 Chula Vista should provide training to all of its personnel specialists regarding the number of leave hours employees earn for working on holidays that fall on Saturdays.

6-Month Agency Response

-On February 23, 2015, Chula Vista personnel specialists received CLAS training on properly compensating and keying leave hours earned by employees working on holidays including those that fall on Saturday;

-Two of nine personnel specialists have completed new/refresher CLAS training. Four additional personnel specialists are confirmed for CLAS training in March 2015;

-In coordination with CalHR, CalVet has corrected or has initiated collection efforts on all confirmed erroneous transactions or overpayments identified in the CSA Audit.

California State Auditor's Assessment of 6-Month Status: Fully Implemented

Chula Vista implemented our recommendation that it train its personnel specialists.

60-Day Agency Response

CalVet has implemented the following actions in its efforts to correctly process employee leave:

Nine of the sixteen personnel specialists are enrolled in CLAS training or CLAS refresher training during the Jan-Jun 2015 SCO training period. The remaining seven personnel specialists have participated in recent CLAS training.

On a monthly basis each Veterans Home HR office reviews and resolves discrepancies that appear on the leave accounting exception reports. These findings and resolutions are reported to the HR Division for compliance review.

CalVet is currently awaiting communication from CalHR who is coordinating the corrective action recommendations in the audit. CalHR has confirmed that they will contact CalVet in the near future to discuss a plan of action for correcting the erroneous transactions processed by the Chula Vista Veterans Home.

California State Auditor's Assessment of 60-Day Status: No Action Taken

Chula Vista has not provided the recommended training to its personnel specialists. However, they are scheduled to attend training in Spring 2015.

All Recommendations in 2012-603

Agency responses received are posted verbatim.