Report 2012-603 Recommendation 2 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 #2 To: Human Resources, California Department of

To correct the erroneous leave hours we identified in our analysis of the leave accounting system, CalHR should work with the state controller and all state agencies under its authority to review and take the appropriate action to correct the errors by January 2015.

Annual Follow-Up Agency Response From August 2018

CalHR has completed this recommendation and worked with departments to ensure they took appropriate action to address the errors identified by the CSA. CalHR has provided instruction to correct the errors that may lawfully be corrected. Some errors identified in the CSA's report were unable to be corrected (e.g., overpayment occurred outside the statute of limitations or the department is unable to verify the error). All 84 departments report that they have corrected the errors they are lawfully able to correct.

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

We reviewed CalHR's tracking spreadsheet for the errors we originally identified and found that all associated departments have finalized their corrective actions.

Annual Follow-Up Agency Response From August 2017

CalHR continues to work with departments to ensure they take appropriate action to address the errors identified by the CSA. CalHR has provided instruction to correct the errors that may lawfully be corrected. Some errors identified in the CSA's report are unable to be corrected (e.g., overpayment occurred outside the statute of limitations or the department is unable to verify the error). Currently, 82 of the 84 affected departments report that they have corrected the errors they are lawfully able to correct. CalHR will continue to assist the remaining departments as needed.

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

Although CalHR has made progress correcting erroneous leave hours, there are still a large number of errors at two departments. CalHR should continue to work with these departments to resolve the errors.

Annual Follow-Up Agency Response From August 2016

CalHR continues to work with departments to ensure they take appropriate action to address the errors identified by the CSA. In addition, CalHR has maintained regular contact with each department to ensure continued actions are taken as appropriate. Some errors identified in the CSA's report are unable to be corrected (e.g., overpayment occurred outside the statute of limitations or the department is unable to verify the error). However, CalHR has provided instruction to correct the errors that may lawfully be corrected. Currently, nearly 80% of affected departments report that they have corrected the errors they are lawfully able to correct. CalHR will continue to assist the remaining departments as needed.

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

Although CalHR has made progress in implementing our recommendation, there are still multiple departments that need to correct errors. Therefore, we do not consider this recommendation fully implemented.

1-Year Agency Response

CalHR worked with the State Controller and provided instructions to all affected agencies on how to confirm and take appropriate action to correct the errors identified by the CSA. CalHR has also requested agencies to update CalHR of its progress in reviewing and correcting errors. Some errors identified in the CSA's report are unable to be corrected by the affected agency (e.g., overpayment occurred outside the statute of limitations or the agency was unable to verify the error). However, CalHR has provided instruction to agencies to correct the errors that may lawfully be corrected, and will continue to assist each affected agency as needed

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

6-Month Agency Response

CalHR and the State Controller's Office have provided instructions to affected departments on how to research and take appropriate action to correct the errors. CalHR continues to provide guidance to departments that have yet to complete their corrections, and will be providing guidance on a monthly basis until all appropriate action has been taken.

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

60-Day Agency Response

CalHR is working cooperatively with SCO on this recommendation. CalHR developed and provided initial instructions to affected departments to begin researching the errors identified by the State Auditor's Office. Starting on October 24, 2014, the SCO will share the erroneous leave transaction data provided by the State Auditor's Office with affected departments. 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.