Report 2008-103 All Recommendation Responses

Report 2008-103: California Unemployment Insurance Appeals Board: Its Weak Policies and Practices Could Undermine Employment Opportunity and Lead to the Misuse of State Resources (Release Date: November 2008)

Recommendation #1 To: Unemployment Insurance Appeals Board, California

To better ensure that its hiring decisions are fair and that employment opportunity is afforded to all eligible candidates, and to minimize employees' perceptions that its practices are compromised by familial relationships or employee favoritism, the appeals board should prepare and formally adopt a comprehensive hiring manual that incorporates the State Personnel Board's guidelines and that specifically directs hiring managers to do the following:
- Conduct and score hiring interviews using a structured interview format and a corresponding rating scale, and benchmark answers that describe the responses that reflect each level of performance on the rating scale.
-Maintain documentation of each of the steps in the hiring process for at least two years. For example, managers should maintain all applications received from eligible applicants and should preserve notes related to interviews and reference checks.
- Forward a memo to the appeals board's personnel services unit that documents the results of the hiring process, including the names of the candidates interviewed, the dates of the interviews, the names of the individuals on the interview panel, and the panel's selection, along with an explanation of why that candidate was chosen. After the appeals board approves hiring the selected candidate, personnel services should maintain this memo for a period of two or more years so that it can demonstrate that the hiring process was based on merit and the candidate's fitness for the job.

1-Year Agency Response

The appeals board issued a new hiring guide in January 2009, which prescribes the use of an interview format, rating scale, and benchmark answers. The guide also instructs that the recruitment file shall be maintained for two years. In addition, the appeals board created a request-for-hire form, which requires the hiring office to obtain and document appropriate approvals and to include on the form the following information: the number of applications received for the position; the number of applicants interviewed; whether an official personnel file was reviewed, references contacted, and if the employee is related to an appeals board employee; and an explanation of why the proposed hire is the most qualified candidate. The appeals board asserts that this form will be maintained with the position action package in its personnel services unit for five years. (See 2010-406 p. 60)

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

Recommendation #2 To: Unemployment Insurance Appeals Board, California

Before implementing another soft hiring freeze, the appeals board should carefully consider whether the projected budgetary advantages outweigh the risk that it may not hire the strongest and most qualified candidates during any such freeze.

1-Year Agency Response

The appeals board reports that it agrees that before implementing another soft hiring freeze for budget reasons, it will consider whether the projected budgetary advantages outweigh the risk of possibly not hiring the most qualified candidates. The appeals board also agrees that it will present this option to the board members for their consideration since it would have an impact on the budget, and the board members have the responsibility for adopting and approving the budget. (See 2010-406 p. 61)

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

Recommendation #3 To: Unemployment Insurance Appeals Board, California

The appeals board should rescind its recently adopted, but legally unenforceable, policy that prohibits hiring a board member into any civil service position at the appeals board for a period of one year from the last day of that individual's term as a board member. Likewise, it should not enforce its new nepotism policy against persons not presently employed by the appeals board. Because both of these policies affect persons outside of the organization, the appeals board should submit new versions of these regulations to the Office of Administrative Law for approval.

Annual Follow-Up Agency Response From January 2011

The appeals board authorized regulations to implement the "Hiring of a Board Member" policy at its October 13, 2009 meeting. The proposed regulation was submitted to the formal adoption process required under the Government Code and published for public comment on January 1, 2010. The formal regulatory process was completed and the effective date of the newly adopted regulation was June 11, 2010. The new regulation can be found at Title 22, California Code of Regulations (CCR), Section 5400. (See 2010-041 p. 132)

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

Recommendation #4 To: Unemployment Insurance Appeals Board, California

To ensure that employees understand their right to file either an EEO complaint or grievance, and to reduce any associated fear of retaliation, the appeals board should notify employees annually of its EEO complaint process and grievance process, including the protections from retaliation included in both. For example, the appeals board should remind employees that they could pursue either EEO complaints or grievances with certain outside entities, especially if they believe they may have been retaliated against.

1-Year Agency Response

In January 2009 the appeals board issued a memo to all employees informing them of the EEO complaint and grievance process. The memo also notified employees that the appeals board had updated its intranet site to contain more detailed information about these processes, including the policy statements, a list of EEO counselors, and complainant rights. Finally, the appeals board reports that it provided EEO and grievance training in January 2009, and placed a copy of the training curriculum on its intranet site. (See 2010-406 p. 62)

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

Recommendation #5 To: Unemployment Insurance Appeals Board, California

To ensure that employees understand their right to file either an EEO complaint or grievance, and to reduce any associated fear of retaliation, the appeals board should update its employee handbook to better emphasize these processes and procedures.

1-Year Agency Response

In January 2009 the appeals board issued a memo to all employees informing them of the EEO complaint and grievance process. The memo also notified employees that the appeals board had updated its intranet site to contain more detailed information about these processes, including the policy statements, a list of EEO counselors, and complainant rights. Finally, the appeals board reports that it provided EEO and grievance training in January 2009, and placed a copy of the training curriculum on its intranet site. (See 2010-406 p. 62)

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

Recommendation #6 To: Unemployment Insurance Appeals Board, California

To ensure that employees understand their right to file either an EEO complaint or grievance, and to reduce any associated fear of retaliation, the appeals board should consider conducting training in this area on a periodic basis.

1-Year Agency Response

The appeals board reports that it provided EEO and grievance training in January 2009, and placed a copy of the training curriculum on its intranet site. (See 2010-406 p. 62)

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

Recommendation #7 To: Unemployment Insurance Appeals Board, California

To ensure that employees are reimbursed only for appropriate and authorized travel expenses, the appeals board should strengthen its travel policies and procedures by requiring supervisors to preapprove employees' travel plans and to subsequently review their travel expense claims to ensure that all travel is in the State's best interest. In addition, it should update its travel manual to provide guidance to employees on how to properly designate their headquarters location. Furthermore, the appeals board should ensure that employees are reimbursed only for those lodging costs that comply with Personnel Administration's regulations.

1-Year Agency Response

In December 2008 the appeals board updated its travel manual to require employees to obtain prior approval from their supervisor for any travel plans. In addition, the appeals board now requires supervisors to audit their employees' travel claims to determine the necessity, reasonableness, validity, completeness, and accuracy of the travel expenses. Furthermore, the appeals board updated its travel manual to include guidance to its employees on how to properly designate their headquarters location. Finally, the appeals board posted its new travel manual on its intranet. (2010-406 p.63)

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

Recommendation #8 To: Unemployment Insurance Appeals Board, California

The appeals board should review travel-related payments it made to its former executive director from the date of his appointment as executive director/chief administrative law judge in November 2000, to determine whether those payments were reasonable and allowable. To the extent that the appeals board identifies travel reimbursements that do not comply with regulations established by Personnel Administration, it should seek recovery from the former executive director.

1-Year Agency Response

The appeals board reports that it conducted a thorough review of the travel-related payments it made to its former executive director. In an October 2009 meeting, the board determined in a closed session that there was no wrongdoing by the former executive director, that he had followed all rules and procedures for filing travel claims, and had relied upon both the board and the Employment Development Department's approval of those claims. The board voted unanimously that it would not seek any reimbursement.(See 2010-406 p. 63)

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

Recommendation #9 To: Unemployment Insurance Appeals Board, California

The appeals board should develop and implement procedures to ensure that its paid parking spaces are used only for authorized purposes, and that employees are not inappropriately using them to park their privately owned vehicles at their headquarters.

1-Year Agency Response

In January 2009 the appeals board issued new employee parking procedures to ensure that its paid parking spaces are only used for authorized purposes. In addition, the appeals board reports that it subsequently cancelled most of its paid parking spaces. (See 2010-406 p. 64)

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

Recommendation #10 To: Unemployment Insurance Appeals Board, California

The appeals board should take steps to resolve the discrepancies between the IT equipment identified in its survey results and its asset management records.

1-Year Agency Response

The appeals board reports that the statewide physical inventory of all its IT equipment was completed on December 30, 2009. The appeals board asserts that, with few exceptions, inconsistencies between the physical inventory and its asset management records were resolved. In addition, the appeals board states that it is in the process of assigning all IT equipment to the IT unit, which will then be tracked using a new electronic IT asset management system. (See 2010-406 p. 65)

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

All Recommendations in 2008-103

Agency responses received after June 2013 are posted verbatim.