Report 2021-104 Recommendation 13 Responses

Report 2021-104: Metropolitan Water District of Southern California: Its Leadership Has Failed to Promote Transparency or Ensure a Fair and Equitable Workplace (Release Date: April 2022)

Recommendation #13 To: Metropolitan Water District of Southern California

To ensure that the board is informed of how often EEO matters are being settled and by what means, by October 2022 MWD should:

- Amend its administrative code to require that all personnel-related settlements that invoke confidentiality or have any financial impact—including paid and reinstated leave—be reported quarterly to the board's Legal and Claims Committee, regardless of settlement type.

- Develop a written policy that outlines mandatory information required when reporting settlements. This reporting on each settlement should include whether EEO issues were implicated, whether the employee is still employed by MWD, the existence and type of any financial or confidentiality terms, and whether MWD has taken any corrective action in response to the alleged issues.

- Implement centralized recordkeeping procedures for all employee settlement agreements, including a means of confidentially indicating the existence of such settlements in the EEO complaint database, its personnel database, or some other central repository.

6-Month Agency Response

Metropolitan amended its administrative code to require all personnel-related settlements that invoke confidentiality or have any financial impact, including paid and reinstated leave, be reported quarterly to the Board regardless of settlement type. (Board Letter 7-12 dated October 11, 2022 and Board Letter 7-8 dated September 14, 2022.)

Metropolitan established a written policy within the administrative code that outlines mandatory information required when reporting settlements. It states that each settlement should include whether EEO issues were implicated, whether the employee is still employed by Metropolitan, the existence and type of any financial or confidentiality terms, and whether Metropolitan has taken any corrective action in response to the alleged issues.

Metropolitan implemented a centralized online database system and a process for compiling information on all employee settlements for quarterly reports to the Board.

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

After working with our office on proposed changes to its administrative code regarding the reporting of settlements, MWD provided evidence that the code has been updated to fully address our recommendation. MWD also provided the written policy it describes in its response. If followed, the policy and new code will provide increased transparency and accountability in MWD's handling of EEO-related personnel issues.

60-Day Agency Response

Metropolitan is reviewing and updating its administrative code and to require all personnel-related settlements that invoke confidentiality or have any financial impact—including paid and reinstated leave—be reported quarterly to the Board regardless of settlement type.

Metropolitan is currently drafting an amendment to the administrative code that outlines the mandatory information required when reporting settlements.

Metropolitan is currently evaluating options for a centralized online database, which will be managed by human resources.

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

All Recommendations in 2021-104

Agency responses received are posted verbatim.