Report 2012-121.2 Recommendation 15 Responses

Report 2012-121.2: Department of Parks and Recreation: Flaws in Its Budget Allocation Processes Hinder Its Ability to Effectively Manage the Park System (Release Date: September 2013)

Recommendation #15 To: Parks and Recreation, Department of

To improve the effectiveness of the EPRC, the department should establish a process by March 2014 through which the director's office provides formal direction to the EPRC regarding staffing priorities.

Annual Follow-Up Agency Response From November 2017

As reported in our 2016 response, DPR disbanded the EPRC. DPR released the Operational Transition Plan (OTP) on October 3, 2017. The OTP communicates the Director's formal direction and priorities for DPR. Part of the OTP included Service Based Budgeting (SBB).

The Department will utilize SBB to establish its future hiring prioritization efforts. Through the SBB analysis the department will identify which positions should be filled based on objective service standards (i.e. need and appropriate funding). These standards will cost out appropriate staffing and provide objective and consistent data for allocating and prioritizing filling positions. Under SBB, allocations will be made based on desired levels of services rather than historic allocations.

In order to ensure all hiring has executive review and approval, the Chief Deputy Director, under guidance from the Director, will review and approve all hiring packets for manager and supervisor classifications. The Deputy Director of Administration will review and approve all other hiring packets.

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

The department indicated it has disbanded the EPRC. Instead, it is using its Operational Transition Plan to guide current staffing priorities and will use its Service Based Budgeting to inform future hiring priorities. Additionally, the department's chief deputy director approves hiring of managers and supervisors and holds weekly meetings with key managers to discuss hiring and promotions. Because the department has disbanded the EPRC but has taken alternate actions to address our concerns, we consider this recommendation resolved.

Annual Follow-Up Agency Response From October 2016

As part of the Service Based Budgeting process, information will be provided to the director's office regarding service levels and budget allocations. Through this process, the director and deputy directors will be able to make informed decisions regarding staffing priorities and communicate those priorities to the department. As service levels are monitored, the director's office will continue to be engaged and briefed on hiring practices and their effect on service levels. We expect Service Based Budgeting to be fully implemented by summer of 2017. The Transformation Team, led by the Director, has been reviewing the department's organizational structure and has identified opportunities to eliminate duplicative services, realign divisions and programs to better support field operations, consolidate some field districts, flatten field management structures, and establish career paths to leadership for a broad range of professional backgrounds. The department will now work with staff and stakeholders as it develops a new organizational model for the department, which will also include how field districts are organized.

California State Auditor's Assessment of Annual Follow-Up Status: Not Fully Implemented

Annual Follow-Up Agency Response From September 2015

The EPRC was disbanded as part of a process improvement team using the Lean 6-Sigma process learned through the Governor's Office of Business and Economic Development (Go-Biz) program. Each Deputy will have the determination of priorities delegated to him/her.

Attachment K:

Departmental Notice 2015-04 - DPR 81/501 Package - Administrative Review and Approval

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

The department has chosen to disband the EPRC and delegate staffing priority decisions for the department to its deputies. However, the department's response does not describe the process through which the director's office provides formal direction to the deputies regarding staffing priorities for the department. Without formal direction regarding staffing priorities from the director's office, deputies may make hiring decisions that are not consistent with the priorities of the department as whole.

1-Year Agency Response

EPRC was disbanded as was recommended by a process improvement team using the Lean 6-Sigma process learned through the Governor's Office of Business and Economic Development (GO-Biz) program. The Director's Office communicates staffing priorities during regularly scheduled meetings and/or emails with the Deputy Director of Administrative Services Division.

California State Auditor's Assessment of 1-Year Status: No Action Taken

The department asserts that it has disbanded the EPRC but did not include details on the process that replaced the EPRC for which the director can provide formal direction regarding staffing priorities.

6-Month Agency Response

Currently, the Directors Office provides direction regarding staffing priorities to the Deputy Director of Administrative Services, at the beginning of each month. Additionally, the Department is establishing policies and procedures to govern the EPRCs decisions on personnel actions including specific factors and their relative importance to be considered when making decisions on personnel actions and will establish a method to document its decisions including reasons for the decisions.

The EPRC will establish a protocol to provide a summary report of its decisions to the Directors Office in conjunction with establishing a process through which the Directors Office will provide formal direction to the EPRC regarding staffing priorities.

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

60-Day Agency Response

The EPRC will request quarterly written direction from the Director's Office outling his staffing priorities.

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

Although the department asserts that the EPRC will request quarterly written direction from the director's office outlining the director's staffing priorities, we would have expected this process to be outlined in the procedures included in the changes to the administrative manual.

All Recommendations in 2012-121.2

Agency responses received are posted verbatim.