Report 2011-120 Recommendation 32 Responses

Report 2011-120: California Department of Transportation: Its Poor Management of State Route 710 Extension Project Properties Costs the State Millions of Dollars Annually, Yet State Law Limits the Potential Income From Selling the Properties (Release Date: August 2012)

Recommendation #32 To: General Services, Department of

To ensure that it complies with its nepotism policy, General Services should have its office of human resources review and approve its existing temporary authorization appointments for casual laborers. If the office of human resources finds that personal relationships exist, General Services should take appropriate action in accordance with its policy.

1-Year Agency Response

As noted in prior status reports, DGS determined that its Office of Audit Services (OAS) would be the most appropriate entity to review DCU's operations for compliance with the department's nepotism policy. In a report dated April 29, 2013, OAS presented its conclusion that DCU has established sufficient policies and procedures to prevent nepotism in the hiring of its casual trades employees. Specifically, based on the results of its evaluation of appointment documentation for a sample of recent casual trades' employee hires and interviews of numerous permanent civil service management and staff, OAS determined that DCU's hiring practices provide reasonable assurance that nepotism is not occurring in the hiring of casual trades employees.

In addition, to provide additional guidance to staff, on February 22, 2013, Administrative Order 13-01 was issued amending the DGS' nepotism policy. The amended policy clearly states that employees will not use their authority or the influence of their position to secure the authorization of employment or benefit for a person closely related by blood, marriage, or other significant relationship as defined in the administrative order.

To ensure that its employees are fully aware of the department's current nepotism policy, DCU provided a copy of the department's amended policy to each of its permanent civil service employees. This process included each employee signing the nepotism policy document acknowledging the receipt and understanding of the policy. Further, DCU now includes the administrative order in the hiring packages of its casual trades' employees.

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

6-Month Agency Response

General Services stated that its office of audit services is conducting a review of the construction unit's operations to determine compliance with the nepotism policy, which it expects will be completed in March 2013. General Services also stated that it is updating its nepotism policy, as well as the nepotism process contained in its Personnel Operations Manual, to provide additional guidance to staff. General Services plans to issue its updated nepotism policy by May 2013. Further, General Services stated that, upon issuance of the new policy, its office of human resources will work with the construction unit to ensure that the construction unit's staff are fully trained on its nepotism policy and practices.

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

60-Day Agency Response

General Services stated that its office of audit services is conducting a review of the construction unit's operations to determine compliance with the nepotism policy. General Services also stated that it is updating its nepotism policy, as well as the nepotism process contained in its Personnel Operations Manual, to provide additional guidance to staff. General Services plans to issue its updated nepotism policy by October 31, 2012. Further, General Services stated that, upon issuance of the new policy, its office of human resources will work with the construction unit to ensure that the construction unit's staff are fully trained on its nepotism policy and practices. (See 2013-406, p. 175)

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

All Recommendations in 2011-120

Agency responses received after June 2013 are posted verbatim.