Report I2019-1 Recommendation 4 Responses

Report I2019-1: Investigation of Improper Activities by a State Agency and Its Employees: A Director Committed Gross Misconduct When She Repeatedly Violated Merit‑Based Employment Principles and Attempted to Retaliate Against Suspected Whistleblowers (Release Date: March 2019)

Case Number I2019-1

Recommendation #4 To: California, State of

The oversight agency should discipline the director's daughter for her improper activities and document the actions in her official personnel file.

Agency Response From December 2019

The agency filed a corrective action in October 2019 and after reviewing the daughter's subsequent response, the agency reported in November 2019 that its initial determination would stand. Thus, in December 2019 the department voided the daughter's following three appointments: (1) November 2011 appointment to staff services analyst, (2) June 2012 appointment to compliance analyst, and (3) May 2017 appointment to associate information systems analyst.

In addition, the department found that as a result of the daughter's bad faith in the third appointment, she is required to reimburse all compensation resulting from that appointment, totaling approximately $30,000. Information regarding all of these actions were placed in the daughter's official personnel file in December 2019 for a period of one year.

California State Auditor's Assessment of Status: Fully Implemented

Agency Response From September 2019

The agency stated that it is working diligently to investigate, prepare, and serve corrective actions related to the daughter's appointments, which includes seeking reimbursement for all compensation resulting from her associate information systems analyst appointment, as ordered by the SPB. The agency estimated that it will file its actions no later than October 2019.

California State Auditor's Assessment of Status: Pending

Agency Response From June 2019

The agency stated that unless it discovers contrary evidence, it will place in the daughter's official personnel file the SPB's April 2019 published findings that she acted in bad faith with regard to the staff services analyst and associate information systems analyst positions. The agency did not state when it anticipates placing the statement in her file.

California State Auditor's Assessment of Status: Pending

Agency Response From March 2019

In May 2018, the agency asserted that because the daughter resigned from state employment effective April 2018, she was no longer subject to state disciplinary action. We responded that although she was no longer a state employee, the agency still should document in the daughter's official personnel file that she resigned shortly after we shared our investigation with the agency. The agency stated in February 2019 that it intends to discuss the recommendation with CalHR, SPB, and other appropriate entities prior to making a final decision. In March 2019 the agency stated that it contacted CalHR and SPB and that neither of them had finalized their reviews at that time. The agency stated that SPB anticipated finalizing its review by April 2019.

California State Auditor's Assessment of Status: Pending

All Recommendations in I2019-1