Report 2012-603 Recommendation 7 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 #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

All Recommendations in 2012-603

Agency responses received are posted verbatim.