Claremont Unified School District Report

Claremont Unified School District Management Review November 7, 2017 Michael H. Fine Chief Executive Officer Fiscal crisis & ManageMent assistance teaM November 7, 2017 James Elsasser, Ed.D., Superintendent Claremont Unified School District 170 W San Jose Avenue Claremont, CA 91711 Dear Superintendent Elsasser: In January 2017, the Claremont Unified School District and the Fiscal Crisis and Management Assistance Team (FCMAT) entered into an agreement to provide a review of the district’s Business Services and Human Resources departments. Specifically, the agreement states that FCMAT will perform the following: 1. Conduct an organizational and staffing review of the district’s fiscal services and human resources departments, and provide recommendations for staffing improve- ments, if any. 2. Evaluate the current work flow and distribution of functions within and between the above departments, and provide recommendations for improved efficiency, if any. This report contains the study team’s findings and recommendations. We appreciate the opportunity to serve you and we extend thanks to all the staff of the Claremont Unified School District for their cooperation and assistance during fieldwork. Sincerely, Michael H. Fine Chief Executive Officer Fiscal crisis & ManageMent assistance teaM i TABLE OF CONTENTS Table of Contents About FCMAT ...................................................................iii Introduction ........................................................................1 Background .....................................................................................................................1 Study and Report Guidelines ......................................................................................1 Study Team ......................................................................................................................1 Executive Summary ...........................................................3 Findings and Recommendations .....................................5 Communication, Policies and Procedures ...............................................................5 Business Services Department ................................................................................11 Payroll .................................................................................................................................11 Human Resources Department .............................................................................17 Organizational Structure and Staffing ......................................................................17 Appendices ....................................................................... 25 Claremont Unified SChool diStriCt ii Fiscal crisis & ManageMent assistance teaM iii ABOUT FCMAT About FCMAT FCMAT’s primary mission is to assist California’s local K-14 educational agencies to identify, prevent, and resolve financial, human resources and data management challenges. FCMAT provides fiscal and data management assistance, professional development training, product development and other related school business and data services. FCMAT’s fiscal and manage- ment assistance services are used not just to help avert fiscal crisis, but to promote sound financial practices, support the training and development of chief business officials and help to create efficient organizational operations. FCMAT’s data management services are used to help local educational agencies (LEAs) meet state reporting responsibilities, improve data quality, and inform instructional program decisions. FCMAT may be requested to provide fiscal crisis or management assistance by a school district, charter school, community college, county office of education, the state Superintendent of Public Instruction, or the Legislature. When a request or assignment is received, FCMAT assembles a study team that works closely with the LEA to define the scope of work, conduct on-site fieldwork and provide a written report with findings and recommendations to help resolve issues, overcome challenges and plan for the future. FCMAT has continued to make adjustments in the types of support provided based on the changing dynamics of K-14 LEAs and the implementation of major educational reforms. Studies by Fiscal Year 90 80 70 60 50 40 30 20 10 0 92/93 93/94 94/95 95/96 96/97 97/98 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 Claremont Unified SChool diStriCt seidutS fo rebmuN FCMAT also develops and provides numerous publications, software tools, workshops and professional development opportunities to help LEAs operate more effectively and fulfill their fiscal oversight and data management responsibilities. The California School Information Services (CSIS) division of FCMAT assists the California Department of Education with the implementation of the California Longitudinal Pupil Achievement Data System (CALPADS). CSIS also hosts and maintains the Ed-Data website (www.ed-data.org) and provides technical expertise to the Ed-Data partnership: the California Department of Education, EdSource and FCMAT. FCMAT was created by Assembly Bill (AB) 1200 in 1992 to assist LEAs to meet and sustain their financial obligations. AB 107 in 1997 charged FCMAT with responsibility for CSIS and its state- wide data management work. AB 1115 in 1999 codified CSIS’ mission. iv ABOUT FCMAT AB 1200 is also a statewide plan for county offices of education and school districts to work together locally to improve fiscal procedures and accountability standards. AB 2756 (2004) provides specific responsibilities to FCMAT with regard to districts that have received emergency state loans. In January 2006, Senate Bill 430 (charter schools) and AB 1366 (community colleges) became law and expanded FCMAT’s services to those types of LEAs. Since 1992, FCMAT has been engaged to perform more than 1,000 reviews for LEAs, including school districts, county offices of education, charter schools and community colleges. The Kern County Superintendent of Schools is the administrative agent for FCMAT. The team is led by Joel D. Montero, Chief Executive Officer, with funding derived through appropriations in the state budget and a modest fee schedule for charges to requesting agencies. Fiscal crisis & ManageMent assistance teaM 1 INTRODUCTION Introduction Background The Claremont Unified School District is located in Los Angeles County approximately 30 miles east of the city of Los Angeles. The district’s approximately 735 employees serve approximately 7,066 students in grades K-12 at seven elementary schools, one school for the orthopedically handicapped, one intermediate school, one comprehensive high school, one community day school, and one continuation school. The district also has an extensive adult school program. As of fiscal year 2015-16, 5.6% of the district’s students were English learners and 39.1% were eligible for free or reduced-price meals. Study and Report Guidelines FCMAT visited the district on April 20 and 21, 2017 to conduct interviews, collect data and review documents. This report is the result of those activities and is divided into the following sections: • Executive Summary • Communication, Policies and Procedures • Business Services Department • Human Resources Department • Appendices In writing its reports, FCMAT uses the Associated Press Stylebook, a comprehensive guide to usage and accepted style that emphasizes conciseness and clarity. In addition, this guide empha- sizes plain language, discourages the use of jargon and capitalizes relatively few terms. Study Team The study team was composed of the following members: Jennifer Noga Rita Beyers* FCMAT Intervention Specialist Assistant Superintendent Bakersfield, CA Coronado Unified School District Coronado, CA Kara Wantlin John Lotze FCMAT Consultant FCMAT Technical Writer Foothill Ranch, CA Bakersfield, CA *As a member of this study team, this consultant was not representing her respective employer but was working solely as an independent contractor for FCMAT. Each team member reviewed the draft report to confirm accuracy and achieve consensus on the final recommendations. Claremont Unified SChool diStriCt 2 INTRODUCTION Fiscal crisis & ManageMent assistance teaM 3 EXECUTIVE SUMMARY Executive Summary Claremont Unified School District is required to use the Los Angeles County Office of Education’s human resource system (HRS), which is an integrated personnel, payroll and retire- ment system. Approximately eight years ago the district’s financial auditors stated that there was an internal control finding in payroll that altered the way new employees’ data must be entered into HRS. Since then, the district’s human resources and business services departments have struggled to work cohesively and collaboratively. The district needs to provide human resources and business office staff with training on the purpose of internal controls to help employees gain a better understanding of their importance. The district has not developed standard written processes and procedures that outline the division of work between the Human Resources and Business Services departments. To increase effective- ness and efficiency, and to gain a better understanding of interdepartmental coordination, these two departments should develop diagrams of workflow processes. Little or no cross training is provided for some of the departments’ key functions, including retirement reporting, payroll processing, hiring of new employees, and health and welfare benefits. These tasks are essential to operations, and the district should develop and implement a plan to ensure that for every position there is at least one other employee who can tempo- rarily perform its key duties. In addition, both departments lack and need to create procedure manuals, which are important for maintaining proper internal controls and providing a better understanding of the responsibilities of each position. It is a best practice for manuals to include step-by-step procedures for most job duties. The absence of strong administrative leadership has led to staff members making decisions that properly belong to administrators, and to employees documenting and monitoring each other. Inconsistent policies and practices have resulted in employee resentment and have reduced the district’s effectiveness and efficiency. Interviews with staff of the Human Resources and Business Services departments yielded mixed reports on the effectiveness of interdepartmental communi- cations and the working relationships between the two departments. Communication typically occurs as needed when situations arise rather than being regular and ongoing. There is a lack of coordination between the departments, and leaders at higher levels may need to intervene to facilitate better communication among the staff. Claremont Unified SChool diStriCt 4 EXECUTIVE SUMMARY Fiscal crisis & ManageMent assistance teaM 5 COMMUNICATION, POLICIES AND PROCEDURES Findings and Recommendations Communication, Policies and Procedures Several years ago, in response to an audit finding, the district divided the Human Resources System (HRS) data entry duties between the human resources and payroll staff. Although appropriate to separate duties, this created a divide between the two departments that continues today. In any local educational agency, all departments and employees are linked and should work closely together as a team. In interviews, several district staff members indicated there is a lack of coordination between the Human Resources and Payroll departments’ employees. To increase effectiveness and efficiency, systems need to be developed and implemented that require departments to work cooperatively and coordinate their work; this helps prevent duplication of processes and reduces discrepancies that affect employees’ pay. Regular, informal meetings between Human Resources and Payroll departments’ staff and managers are not taking place. Holding such meetings is important because the human resource and payroll functions are interrelated, and because better communication would help to improve the working relationship, resolve issues, increase understanding of processes, and address staff needs. It is best practice for both departments to contribute to the agendas for such meetings to ensure everyone’s concerns are addressed. The following topics would be helpful to include: • Changes to policies and procedures that will affect each department. • What segregation of duties and internal controls mean within and between the departments. • Standard processes for determining which documents require approval and by whom. Staff expressed concern about employee safety. The superintendent needs to be sure the district is adhering to Board Policies 4157(a), 4257 and 4357, Employee Security, each of which states: The Board of Education desires to provide a safe and orderly work environment for all employees. As part of the district’s comprehensive safety plan, the Superintendent or designee shall develop strategies for protecting employees from potentially dangerous persons and situations and for providing them with necessary assistance and support when emergency situations occur. In interviews, staff also indicated a harassment complaint was made, but there was not a resolu- tion to the situation. The district’s Administrative Regulation 4031, Personnel, states: Any complaint by an employee or job applicant alleging discrimination or harassment shall be addressed in accordance with the following procedures: 1. Notice and Receipt of Complaint: Any employee or job applicant (the “complainant”) who believes he/she has been subjected to prohibited discrimination or harassment shall promptly inform his/her supervisor, the district’s Coordinator for Nondiscrimination in Employment, or the Superintendent. Claremont Unified SChool diStriCt 6 COMMUNICATION, POLICIES AND PROCEDURES The complainant may file a written complaint in accordance with this procedure, or if he/she is an employee, may first attempt to resolve the situation informally with his/her supervisor. A supervisor or manager who has received information about an incident of discrimina- tion or harassment, or has observed such an incident, shall report it to the Coordinator, whether or not the complainant files a written complaint. 2. Investigation Process: The Coordinator shall initiate an impartial investi- gation of an allegation of discrimination or harassment within five school days of receiving notice of the behavior, regardless of whether a written complaint has been filed or whether the written complaint is complete. The absence of strong administrative leadership has led to employees making decisions that prop- erly belong to administrators, including employees documenting other employees’ work or lack thereof. These activities reduce the district’s effectiveness and efficiency. In addition, inconsistent policies and practices have resulted in employee resentment and distracted them from their work. Employees described interactions that were not positive or helpful, and frequently accusatory and petty. Several employees stated that Human Resources Department employees lacked job skills and were uncooperative and unfriendly; others stated that Payroll Department employees were unhelpful and aggressive. Some employees brought pages of notes on which they had listed errors, transgressions, and omissions perpetrated by one department or another. In some cases, these notes referenced events that occurred more than five years ago. Numerous employees commented that they and/or others were constantly watching other employees in both their own and other departments to determine if other employees were working a full eight hours per day, properly accounting for their absences, claiming too much overtime, or in their proper places during the workday. Employees made statements such as, “I assume I am watched [by other employees] the entire time I am at work.” Employees consistently stated that some departments and people are given more latitude than others. Examples included a lack of standardization in the hours each department is open and a lack of standardization regarding employee work hours. Some employees are allowed to have flexible hours or come to work at 8:30 a.m. or later, while other employees must adhere to strict hours and arrive early. Employees stated that some employees are allowed to work overtime but others are not. In many cases, events or actions from years ago are still remembered and resented. This envi- ronment prevents employees from working together in a safe, conflict-free manner. In such situations it can be helpful to employees and in a district’s best interest to hire a third-party conflict resolution consultant to oversee initial meetings between Human Resources and Payroll departments’ staff to help resolve and/or move beyond past issues and to develop better commu- nication and working relationships. Fiscal crisis & ManageMent assistance teaM 7 COMMUNICATION, POLICIES AND PROCEDURES Recommendations The district should: 1. Develop standard written processes and procedures that outline the work flow between the Human Resources and Business Services departments. 2. Ensure the work environment at the district office is in compliance with Board Policies 4157(a), 4257 and 4357. 3. Ensure that employee complaints are addressed in accordance with Administrative Regulation 4031. 4. Conduct informal but regular and mandatory meetings between the Human Resources and Payroll departments’ staff. 5. Provide strong administrative leadership for all departments. 6. Establish clear expectations for employee behavior and professionalism. Hold all employees accountable for their own work and professional behavior. 7. Hire a third-party conflict resolution consultant to facilitate meetings between Human Resources and Payroll departments’ staff. Claremont Unified SChool diStriCt 8 COMMUNICATION, POLICIES AND PROCEDURES Internal Controls Internal controls are the foundation of sound financial management and allow school districts to fulfill their educational mission while helping ensure efficient operations, reliable financial infor- mation and legal compliance. Internal controls also help protect school districts from material weaknesses, serious errors and fraud. Establishing a sound internal control environment in small school districts is difficult because there are fewer full-time equivalent (FTE) positions and it is a challenge to segregate duties. The district has a policy which states the superintendent or superintendent’s designee shall develop internal controls, but there is a lack of consistently implemented internal control proce- dures. Although the district is small, like all educational agencies need internal control procedures that do the following: 1. Prevent internal controls from being overridden by management. 2. Ensure ongoing state and federal compliance. 3. Provide assurance to management that the internal control system is sound. 4. Help identify and correct inefficient processes. 5. Ensure that employees are aware of the proper internal control expectations. System Security Formal procedures are needed to initiate, approve, execute, record and reconcile transactions. The procedures should identify the employee responsible for each step and the time needed for completion. To safeguard electronic data and provide for proper internal controls, it is a best practice to restrict software access (e.g. view-only or change access) to designated employees based on job duties. Staff stated that the payroll technician for classified employees processes their own payroll. The payroll system can be set to lock out an employee if they try to make a change to their own record. It would benefit the district to ask the county office to make this change to the system. Allowing one individual to change all data to set up and pay an employee constitutes a lack of proper internal controls. The district could eliminate this issue by having the payroll technician for certificated employees also process the payroll, deductions and absence entries for the payroll technician for classified employees. Segregation of Duties Districts need adequate internal accounting procedures and arrangements that segregate job duties and protect a district’s assets. No single employee should handle a transaction from initia- tion to reconciliation, and no single employee should have custody of an asset, such as cash, and maintain records of its transactions. Staff indicated that before approximately eight years ago, when an audit resulted in a finding on the matter, payroll staff entered all data into HRS. After the audit finding, human resources staff began entering the information into the system. This created a divide between the two departments that continues to be a problem. For example, Human Resources Department staff believe they are performing payroll job functions, especially if any math calculations are required, Fiscal crisis & ManageMent assistance teaM 9 COMMUNICATION, POLICIES AND PROCEDURES such as calculating FTE. Staff in both departments need training on internal controls to better understand the meaning of and need for segregation of duties, and to improve work cooperation. Desk Manuals Desk manuals that include processes and procedures help staff and managers better understand each position’s responsibilities and help ensure proper internal controls. Manuals can also help ensure that necessary tasks are completed when the employee normally assigned to a particular duty is absent or a position is vacant. The district does not have a payroll processes and procedures manual. Payroll staff have developed individual processes and procedures based on the software systems being used, such as HRS and the Current Solutions software; however, staff and administrators have not developed step-by- step procedures for each job duty. It is a best practice to create and include workflow diagrams as part of desk manuals to ensure a better understanding of coordination between departments and positions. A sample workflow diagram is included in Appendix A. In addition, a recommended division of responsibilities for HRS is provided in Appendix B. Some best practices for creating desk manuals include the following: 1. Create individual documents for different processes and procedures. 2. Include screenshots. 3. Include feedback from other staff and departments. 4. Include on the page the date the file was created, and the author of the most recent updates. 5. Use job titles instead of employees’ names when documenting workflow. 6. Keep formatting simple so it can be edited easily. 7. Keep the master copies in a shared location so other employees can easily access them. 8. Keep both a local and a cloud-based secure backup of the files. 9. Review and revise desk manuals once a year or as needed Ensuring that staff members follow the latest and most efficient procedures will increase consistent results, help when training new employees and cross-training current employees, and eliminate dependence on one person. It would benefit the district to conduct quarterly meetings with all employees to share any new or amended procedures. Training and Cross Training The district is not training employees to perform other employees’ or positions’ duties in case of absence so that more than one employee is able to perform each position’s duties (cross training). Doing so would enable the district to continue essential functions without interruption in case of absences. This can be difficult in small districts but is no less necessary. A lack of cross training could put the district at risk. Claremont Unified SChool diStriCt 10 COMMUNICATION, POLICIES AND PROCEDURES Although the district’s payroll employees have experience and knowledge of other payroll job duties, they have received little or no cross training in some essential functions, including retire- ment reporting and payroll processing. The district will need to emphasize cross training so the payroll technicians for certificated and classified employees can temporarily perform each other’s duties if one of them is absent. The county office offers training on various topics, including HRS, California Public Employee Retirement System (CalPERS), California State Teachers Retirement System (CalSTRS), the Family and Medical Leave Act (FMLA), and the Affordable Care Act (ACA). The California Association of School Business Officials (CASBO) also offers workshops, as do various specialty law firms. The district does not provide annual training for staff on new or amended policies and proce- dures. Providing such training, such as a required session before the school year for office managers, could help ensure that staff understand the most current policies and procedures. It is also a best practice to train new and recently promoted employees to ensure they understand their responsibilities. Recommendations The district should: 1. Require Human Resources Department and Payroll Department staff to attend an internal controls workshop to help them better understand the segregation of duties and why they are needed for proper internal controls. 2. Assign staff to complete step-by-step procedures for each of their job duties and include them in a desk manual. 3. Ensure that workflow diagrams are created to help employees better under- stand coordination with other departments and positions. 4. Conduct annual trainings on policies and procedures for all employees. 5. Ensure the payroll staff are cross trained in all essential job responsibilities. Fiscal crisis & ManageMent assistance teaM 11 BUSINESS SERVICES DEPARTMENT Business Services Department The Business Services Department is under the direction of the assistant superintendent of busi- ness services, who has served in this position for the past 12 years and previously served as the executive director of fiscal services for eight years. This position is responsible for overseeing the district’s budget and finances, long range financial planning, risk management; attendance; and the facilities and child nutrition departments. The executive director of fiscal services has been in this position for almost nine years. This posi- tion is responsible for planning, organizing, monitoring and directing the district’s fiscal services operations. The executive director oversees the staff accountant, the purchasing coordinator, the accounting analyst, accounts payable staff, and payroll staff for certificated and classified employees. Approximately eight years ago the district’s financial auditors stated that there was an internal control finding in payroll. In response, the district changed how new employees’ data are entered into HRS. Specifically, the district made human resources staff responsible for entering data, while payroll staff concentrates on output such as the data required to issue a paycheck. The Human Resources and Business Services departments have struggled to work cohesively and collaboratively under this arrangement, and this has reduced both departments’ efficiency. Staff follow the rules set by the superintendent but are affected by the difficulty the two depart- ments have working together, and some perceive inequities in performance expectations and the distribution of responsibilities. Some Business Services Department employees noted that even within the department some employees are given more latitude than others. Several staff members commented that all depart- ments should be held to the same standards, and that although they feel supported by business services management they also understand that their managers are not always able to effect the needed changes. The accounting analyst has been in his position for almost two years and handles various projects. This position was originally created to be shared between business services and human resources to help with the new ACA reporting requirements and with workload issues. Top administrators have directed that no extra hours or overtime are to be allowed for this position, but Business Services Department employees perceive that Human Resources Department employees regularly work overtime and do not seek help from the accounting analyst that could reduce the need for overtime. Payroll Controls over Payroll The district’s payroll is processed through the Los Angeles County Office of Education using the county office’s human resource System (HRS), which also offers human resources and benefits functions. The system serves more than 120 educational agencies throughout Los Angeles County. The system comprises databases, online real-time functionality, and overnight batch processing. It supports all county-office-authorized payroll issue schedules for school districts. The system also generates ad hoc reports in response to a large number of requests for personnel and payroll information. All district employee data, including pay rates, are entered into the system by the district’s human resources employees. HRS interfaces with the county office’s Claremont Unified SChool diStriCt 12 BUSINESS SERVICES DEPARTMENT PeopleSoft financial system to centralize districts’ data for budgeting. The district can access HRS data using PC Products Labels, Lists and Letters (LLL) Report Writer. The district uses Current Solutions software to track employee sick leave and vacation time. All district employees have access to enter and view their own absence data in the system. Current Solutions is not integrated with HRS or with Frontline Technologies’ Automated Educational Substitute Operator (Aesop), the substitute calling system. Employees must enter absence data in both Current Solutions and Aesop; this decreases efficiency and increases the chance of error. Department Staffing and Structure According to the district’s Business Services Department organizational chart dated August 2016, the executive director of fiscal services is the immediate supervisor of the two payroll technicians for certificated and classified staff. The payroll technician staffing is sufficient. Job Descriptions Staff members completed a job duties template FCMAT provided to identify routine duties they perform. FCMAT compared this information to the district’s job descriptions to assess the workflow. Government Code 3540 defines a confidential employee as “…any employee who, in the regular course of his or her duties, has access to, or possesses information relating to, his or her employ- er’s employer-employee relations.” The Public Employee Relations Board (PERB) Decision No. 736 states, “Confidential status is limited to (1) those employees who assist and act in a confiden- tial capacity to persons who formulate, determine and effectuate management policies in the field of labor relations…” The job description for the payroll technician position states the position is confidential; however, it does not include responsibilities for labor relations nor did the payroll technicians describe responsibilities that would properly classify this position as confidential. Payroll Technicians The payroll technician job description is dated March 1994 but does not indicate whether this was the date the governing board approved the description. Duties in the job description include payroll functions as well as auditing health and welfare order warrants and invoices. Health and welfare auditing is no longer part of payroll duties. In addition, both payroll technicians listed employee payroll deduction requests among their current duties, but the job description does not include these. Both payroll technicians perform the same job functions for the employees they serve, with the exception of processing union dues. The payroll technician for certificated employees processes the California Teachers’ Association (CTA) dues, but the payroll technician for classified employees does not process California State Employees’ Association (CSEA) dues because the human resources technician for classified employees enters this information into HRS. Because the payroll technicians process all employee payroll deductions including the CSEA chapter dues and CSEA victory club dues, it would provide better consistency if the payroll technician for classified employees processed the CSEA dues. Currently, the payroll technician for certificated employees creates a report in HRS to identify new hires and any CTA deductions that need to be updated. The payroll technician for classified employees could follow the same process for CSEA dues and use the CSEA application form to update dues in HRS. Fiscal crisis & ManageMent assistance teaM 13 BUSINESS SERVICES DEPARTMENT Payroll Processing The county office processes the district’s payroll using HRS. This is advantageous because the county office offers frequent professional development opportunities and assistance on each software module, including human resources and payroll. The district is required to adhere to the county office’s deadlines for submitting payroll data. The deadlines and payroll check issue dates may change from month to month based on observed holidays and county office closures. Certificated Staff Payroll Processing Time cards from schools and departments for various certificated hourly employees are due and payments are made on the dates indicated in the table below. Description Dates Worked Due to Payroll Pay Date 22nd 1st-22nd Substitute/Adult School/Child 5th of the following month Development/Home Hospital 31st 10th of the following month 23rd-31st Coaching - 25th 5th or 10th of the following month Extra Task Assignments - 20th 1st of the following month Salaried and administrative employees are paid the first of the month for the month prior. Classified Staff Payroll Processing Time cards from schools and departments for various classified hourly employees are due and payments are made on the dates indicated in the table below. Description Dates Worked Due to Payroll Pay Date 22nd 1st-22nd 5th of the following month Substitute 31st 10th of the following month 23rd-31st Coaching - 25th 5th or 10th of the following month Extra Task Assignments - 20th 1st of the following month Last working day of Additional Hourly 10th of the following month the month Salaried and administrative employees are paid the 10th of the month for the month prior. For salaried employees, an earned salary advance is paid on the 25th of each month; it is based on the monthly salary minus any deductions and divided by two. Employee Absence Tracking and Substitute Payment Aesop is used districtwide to obtain certificated and classified substitutes. However, it is not used to pay certificated substitute teachers; instead, a substitute time card is submitted to payroll for processing. Staff indicated not all teachers are using the system when they require a substitute; some teachers (or sometimes an office manager) contact the substitute directly. It would benefit the district to create procedures that require and enable all school employees and office managers to use Aesop to obtain a substitute. The district’s absence reporting process is overly complex and subject to human error. Staff indicated that a comparison of time sheets with Current Solutions data for one school showed 17 discrepancies, specifically absences reported on time sheets but not in Current Solutions. Payroll Claremont Unified SChool diStriCt 14 BUSINESS SERVICES DEPARTMENT staff do not have access to Aesop, so a three-way comparison was not completed. According to staff, paper absence forms are no longer being used because employees are required to enter all absences directly into Current Solutions. The only exception is for personal necessity leave in excess of 7 days, for which the employee sends an email to the payroll technician, who then forwards it to the assistant superintendent of human resources for approval. The district has a personal necessity leave form online dated October 2016. If this form is no longer required, the district could remove it from its website. Staff indicated that the reasons for absence when an employee is conducting school business, attending professional development or performing certain other duties are not reported in Aesop or Current Solutions; they are only listed on time sheets. It would be best practice to report and track all absences for both certificated and classified employees in Aesop; this would improve internal controls and better account for staff when they are not working and when a substitute is required. The payroll technicians need access to Aesop to track sick leave for substitutes in accordance with Assembly Bill (AB) 1522, the Health Workplaces/Healthy Families Act of 2014. The human resources technician emails the payroll technicians when a substitute declines a job in Aesop, and a payroll technician verifies with the substitute time sheet whether the employee is eligible for a sick day. If the employee is eligible, the payroll technician updates a spreadsheet on their computer; if not, the payroll technician emails the human resources technician and the school site. Staff indicated substitutes are given three sick leave days at the beginning of the school year, but were under the impression that the three days did not necessarily equal a total of 24 hours. According to AB 1522, the three days do equal 24 hours. If an employee works less than eight hours a day, the 24 hours will give them more than three days of leave; for example, if they work six hours a day, they will receive four days of sick pay. For more information on the details of the meaning of three days, access http://www.dir.ca.gov/DLSE/Paid_Sick_Leave.htm. As mentioned above, it would benefit the district to use Aesop for reporting all employee absences regardless of whether a substitute is required. It would also be beneficial for district management to consult Current Solutions about creating an interface between Aesop and Current Solutions data. This could simplify absence reporting and substitute pay processes, elimi- nate dual entry and reduce data entry errors. Reviewing Aesop’s setup would help verify whether it is tracking items as required; allowing supervisors to review, authorize and edit staff absences; allowing payroll technicians access to reporting so they can audit absences; and giving all school site office managers access to edit start and end times for substitutes and employee absences. Coordination between human resources staff and the payroll technicians is essential to ensure employees are not underpaid or overpaid, and to track and properly record leave time. Written procedures would help clarify these responsibilities. CalSTRS and CalPERS Contributions and Reporting The county office is responsible for retirement reporting to CalSTRS and CalPERS for all school districts in the county. The district’s human resources technician is responsible for determining the retirement status of each new employee by reviewing the payroll information form included in each new hire employee packet. The payroll technicians have access to their respective retire- ment systems: CalSTRS Remote Employer Access Program (REAP) for the payroll technician for certificated staff, and CalPERS for the payroll technician for classified staff. Employee paperwork Fiscal crisis & ManageMent assistance teaM 15 BUSINESS SERVICES DEPARTMENT is not always filled out correctly, so the human resources technician is responsible for verifying retirement directly in the CalSTRS and CalPERS systems. Staff indicated that sometimes employees are set up in HRS with the incorrect retirement system. The county office does not audit what the districts set up, so errors are not caught until CalSTRS or CalPERS notifies the county office and the county office then notifies the district. This usually results in the payroll technicians having to make multiple adjustments going back several months. Retroactive corrections are also needed when human resources enters incorrect position end dates for the school year in HRS because this results in incorrect reporting to CalSTRS and CalPERS. Retirement adjustments also have to be made when an employee works enough hours to be eligible for CalSTRS or CalPERS. The county office notifies the payroll technicians when this occurs, and the payroll technicians notify human resources staff so they can make the changes in HRS. The payroll technicians also run LLL reports to make retirement determinations. It would be beneficial to also make human resources staff responsible for accessing LLL and making retire- ment adjustments, and to have human resources and payroll staff work together to determine employees’ retirement status. Recommendations The district should: 1. Reclassify the payroll technician position from confidential to classified. 2. Ensure that the payroll technician for certificated employees processes payroll, deductions and absences for classified employees in HRS and Current Solutions. 3. Eliminate paper absence request forms and revise payroll procedures as needed to accommodate this. Remove the absence request form from the website. 4. Update the payroll technician job description to include current processes and a board approval date. 5. Change processes so that absences are entered and tracked in one system, such as Aesop. 6. Meet with Current Solutions staff to determine whether an interface can be created between Aesop and Current Solutions to eliminate dual entry and thus reduce data entry errors. 7. Create internal procedures to require all school site employees who need a substitute to use Aesop. 8. Give payroll technicians the time and opportunity to attend trainings and workshops. 9. Ensure that the payroll technician for classified employees processes CSEA dues so their duties parallel those of the payroll technician for certificated employees. Claremont Unified SChool diStriCt 16 BUSINESS SERVICES DEPARTMENT 10. Provide payroll employees with access to Aesop for auditing purposes. 11. Ensure that all school site office managers have access to Aesop to edit start and end times for substitutes and employee absences. 12. Ensure that school business, directed attendance and professional develop- ment absences are reported in Aesop. 13. Ensure that it adheres to AB1522 when accounting for the three days of leave the law specifies for employees. 14. Develop written procedures regarding the responsibilities of Human Resources Department and Payroll Department staff for processing and managing employee leave. 15. Ensure that Human Resources Department staff access LLL reports to help them assign the correct retirement system to employees’ records in HRS. Fiscal crisis & ManageMent assistance teaM 17 HUMAN RESOURCES DEPARTMENT Human Resources Department All human resources departments need an adequate organizational structure and staffing to support their organization’s personnel management needs. The district’s Human Resources Department is responsible for the legal requirements associated with human resources manage- ment, and for staff recruitment. These functions work best when human resources staff work with administrators and supervisors to carry out personnel evaluations, maintain personnel records, and develop and implement personnel procedures. In any human resources department, staff need training, and must follow board-adopted policies, California Department of Education requirements, the California Education Code, and all other applicable state and federal laws. Organizational Structure and Staffing The district’s job description for the assistant superintendent, human resources describes the posi- tion as providing leadership and administering human resources functions, including managing Beginning Teacher Support and Assistance (BTSA); acting as chief negotiator in labor matters; and acting as the uniform complaint officer. Professional responsibilities include planning, developing, and administering the personnel system for all classified and certificated employees; directing the recruitment, selection, assignment, transfer, promotion, and termination of all personnel; developing solutions to various types of personnel problems; directing an evaluation program for certificated and classified personnel; administering staffing allocations; coordinating the district’s mandated staff development program; monitoring tuberculosis testing, fingerprint clearance, and Cross-Cultural Language and Academic Development (CLAD) authorization; and negotiating and administering collective bargaining agreements. The governing board approved the job description in December 2011. The assistant superintendent, human resources has experience as a teacher and principal, as well as in the areas of labor relations, negotiations, and collaborating with principals on evaluations of teachers. Best practices also require expertise in essential operations of personnel management, laws and legal regulations that affect the department, and how to minimize legal risks for the district and protect financial resources. Interviews with staff indicate a desire for stronger department leadership and involvement in the daily operations of the department. Employees expressed frustration and concern about issues such as a perceived lack of accountability for HR employees, a perceived lack of defense of human resources employees’ work, and the need for more guidance related to HR functions. It would benefit the district to provide department leadership with additional training oppor- tunities in the areas of leadership, evaluating employees, and legal aspects. Training is available from recognized organizations such as the California Association of School Business Officials, School Services of California, and the Association of California School Administrators Personnel Administrators Academy. In addition to the assistant superintendent, the Human Resources Department has one admin- istrative secretary III; one personnel technician, certificated; one personnel technician, classified; and one personnel technician, substitutes/benefits. There is also a credential analyst position that the district has chosen not to staff. The four filled positions are listed on the confidential salary schedule. The administrative secretary III position has a higher salary range, as does the credential analyst position. Claremont Unified SChool diStriCt 18 HUMAN RESOURCES DEPARTMENT Administrative Secretary III (Confidential) The job description for the administrative secretary III - (confidential) states the position’s main functions are to perform highly complex and responsible secretarial and administrative support duties; relieve the administrator of a variety of administrative details; and coordinate information and communication for an assistant superintendent or business manager. One of the repre- sentative duties includes organizing and facilitating office activities and department operations to relieve the administrator of a variety of administrative details. The job description was last updated in 1999. The job description does not include responsibilities that would be considered confidential under Government Code 3540. The task list provided by the employee in this position included running a variety of reports; creating, monitoring and updating employee data; ordering supplies for the department and special events; managing a variety of documents, including resolutions and spreadsheets; scheduling appointments for the assistant superintendent, human resources; taking notes during contract negotiations with employee bargaining units; and training Human Resources Department employees. Employees described the administrative secretary III’s primary responsibility as directing the workflow of the Human Resources Department. The district’s website lists coordinating the department, board agenda, inservice/training, and negotiations as this employee’s responsibilities. Many of the Human Resources Department’s daily operations are the administrative secretary III’s responsibility because the assistant superintendent is frequently unavailable or out of the office. In addition to managing the assistant superintendent’s calendar and coordinating the department, the administrative secretary III is responsible for doing the work of any position unfilled due to absence or resignation. In the last year, this employee has had to perform the work of each of the other three positions at various times. This has limited the employee’s ability to implement department initiatives such as moving to a paperless application and employment process. It has also prevented the employee from taking notes during contract negotiations with employee bargaining units. The assistant superintendent is well supported by the administrative secretary III and is thus able to focus on the aspects of the job that are in his areas of strength, and has assigned the admin- istrative secretary III to manage the day-to-day responsibilities and activities of the department. Although the administrative secretary III job description includes organizing and facilitating office activities and department operations to relieve the administrator of a variety of administra- tive details, this employee’s current responsibilities exceed those in the job description. As the most senior employee in the department, this employee is responsible for training new department employees. Because some tasks are done once a year, it can take up to a year to train a new employee. The employee in this position maintains and updates her knowledge of proper and legally appro- priate human resources practices by attending conferences, and uses the information learned to ensure the district’s human resources practices are in legal compliance. Some of the conferences the employee attends are directly related to school district practices; others are not. Fiscal crisis & ManageMent assistance teaM 19 HUMAN RESOURCES DEPARTMENT Recommendations The district should: 1. Refocus the assistant superintendent’s responsibilities to include daily over- sight of the department’s operations and provide leadership to employees. 2. Provide opportunities for the assistant superintendent to expand his knowl- edge and skills in human resources department responsibilities. 3. Update the administrative secretary III position’s job description to include the confidential responsibilities currently assigned to the employee in this position. Personnel Technician – Certificated (Confidential) The district’s job description states the main function of this position is to perform complex technical and specialized functions in support of the employment, credentialing and processing of the district’s certificated employees. Representative duties include verifying that teachers and other certificated employees have proper credentials recorded with the county office of educa- tion; providing detailed information regarding certificated employment opportunities, salaries and related matters; performing a variety of duties related to the recruitment and selection of certificated applicants; updating the payroll system regarding salary changes, additions to staff, leaves of absence, and change of status; and maintaining a variety of records and files related to certificated personnel. The governing board approved the job description in December 2013. The job description does not include responsibilities that would be considered confidential under Government Code 3540. At the time of the FCMAT’s fieldwork, this position was vacant. The administrative secretary III was performing this position’s duties, so she completed the task list provided to FCMAT. That list includes data entry into HRS and Helios (a third-party human resources, payroll and position control system); processing and updating changes to certificated employees’ personal and job information; creating and distributing job flyers, interview materials, and board action follow-up letters; processing new employees; and processing coaches as needed. This position is also respon- sible for monitoring credentials and class assignments. Employees indicated that although employee turnover is low, an average of 20 to 30 new certifi- cated employees need to be processed each summer. They also schedule one group orientation for substitute teachers before the beginning of the school year. Credential Analyst (Confidential) The job description for the vacant credential analyst (confidential) position describes the posi- tion as performing complex, technical, and specialized functions in support of employment, credentialing and processing of the district’s certificated, certificated management, and classified management personnel. This position is also expected to provide technical guidance to other human resources staff as required. The majority of the professional responsibilities listed for this position are identical to those of the personnel technician – certificated position. The credential analyst (confidential) position is paid at range 5.5 on the confidential salary schedule, while the personnel technician – certificated is paid at range 5.0 on the confidential salary schedule. Claremont Unified SChool diStriCt 20 HUMAN RESOURCES DEPARTMENT Recommendations The district should: 1. Update the job description of the personnel technician – certificated to include essential responsibilities from the credential analyst position with regards to the certificated employees, and adjust pay range accordingly. 2. Reclassify the personnel technician – certificated position from confidential to classified. Personnel Technician – Classified (Confidential) The job description states that this position performs technical and specialized functions in support of the employment and processing of the district’s classified personnel. Responsibilities include performing a variety of duties related to recruitment and selection of classified applicants; explaining district policies and regulations to new employees; updating the payroll system data on staff, leaves of absence, calendar, salary schedule, and change of employee status; and processing and maintaining employment forms and records. The position’s job description was last revised in September 2015. The task list submitted for this position includes a variety of human resources assignments related to processing, maintaining and updating classified employees’ personnel records. These include maintaining and updating employee longevity; posting classified positions; providing support for selecting classified employees, including scheduling interviews; processing new classified employees; creating rosters of classified employees for board agendas and follow-up board docu- ments; processing paper copies of personnel requisitions and the personnel requisition book; and processing reclassification meetings and materials. The job description does not include responsi- bilities that would be considered confidential under Government Code 3540. The employee in this position stated that she “on-boards” classified staff and described on-boarding as posting positions for classified vacancies, coordinating interviews, processing the required paperwork, and creating board agendas. Many of the data functions this employee performs result in people earning more money; these include handling data on stipends, longevity, transcript analysis, and reclassification requests. Many of the processes rely heavily on paper documents. Recommendations The district should: 1. Update the job description of the personnel technician – classified to include essential responsibilities from the credential analyst position with regards to classified management personnel, and adjust pay range accordingly. 2. Analyze paper processes and procedures for efficiencies, including ways to reduce the dependence on paper. 3. Reclassify the position from confidential to classified. Fiscal crisis & ManageMent assistance teaM 21 HUMAN RESOURCES DEPARTMENT Personnel Technician – Substitutes/Benefits (Confidential) The job description states that this position provides placement of qualified substitute employees, processes all contract teachers for the district’s adult school and consultants for the district, and coordinates benefits coverage for all district staff. Responsibilities include managing the auto- mated substitute assignment system; coordinating health and welfare benefits for all staff; being the single point of contact for questions, changes, and enrollment; selecting, contacting, and assigning qualified substitute employees; maintaining appropriate records concerning employee absences; providing confidential clerical support such as updating manuals, assembling employ- ment packets, and posting of job opportunities; and maintaining personnel files. The board approved the job description in December 2013. The task list the employee in this position provided shows a variety of tasks related to absence management, including assigning substitutes daily, monitoring employee absences, and helping employees access the substitute assignment system. The management of the automated substitute system requires the employee to work early morning hours to obtain substitutes for all absences. The task list also includes ACA processes; enrolling, changing and updating employee benefits; and miscellaneous assignments such as working with consultants and fingerprint monitoring; and updating data in HRS. Although the early morning hours are needed to obtain substitutes, the employee is then unavailable late in the afternoon, which is often when site employees have time to discuss their benefits. The employee in this position indicated that she focuses on helping employees with their bene- fits. She has attended training and found it helpful, but commented that no two people’s benefits are exactly the same so the input and processes change from person to person. She does not have a standard process for employee benefits tasks because of the variability of the employees’ needs. The input done in this position has direct effect on employees’ payroll. The lack of a standard process has resulted in errors in the benefits input, which affects employees’ pay warrants and requires the payroll technicians to make corrections. Some duties related to employee benefits, such as the annual benefits fair and the determination of benefits rates, are performed by the Business Services Department. The employee in this position supports and trains office managers on the automated substitute system. She stated that although she provides basic training, there is not enough time to train the office managers fully on the system. As a result, they have minimal access to the system, which decreases effective use of the system. The employee takes on work the office managers could do more efficiently if they had the training. The district holds a large substitute teacher orientation at the beginning of each school year, and this employee assists with that. However, substitutes are processed for employment one at a time throughout the year as principals call the personnel technician to recommend certain individuals. This process is unusual and may not be giving the district the broadest or most qualified substi- tute pool. Recommendations The district should: 1. Establish a clear delineation of job responsibilities that takes into account employee needs. Consider reassigning responsibilities to match work hours. Claremont Unified SChool diStriCt 22 HUMAN RESOURCES DEPARTMENT 2. Process and orient substitute employees at the same time as and similarly to the group orientation session held at the beginning of the year, rather than one at a time. Ensure that substitute positions are posted regularly so that all qualified applicants may be considered. 3. Establish a task list to ensure that benefits information is properly entered regardless of the employees’ plan selections. Operational Efficiency At the time of FCMAT’s fieldwork, the district had approximately 735 employees, including 42 in management; 11 confidential; 343 certificated; and 339 classified. There are times of intense activity, such as the beginning of the school year, when staff feel overloaded with work. Employees noted hiring and assignment of certificated staff begins earlier than hiring and assign- ment of classified staff. The Human Resources Department is staffed with an assistant superintendent, an administrative secretary III, and three personnel technicians; it also has an unfilled credential analyst position. A review of human resources staffing in the Temple City, Culver City, Manhattan Beach and San Gabriel unified school districts, which are similar in size to Claremont Unified, showed that the district’s staffing in its Human Resources Department is appropriate. Two of the comparison districts’ human resources departments were staffed with an assistant superintendent and four staff members; the other two were staffed with an assistant superintendent and three staff members. Employees indicated they are not cross trained. Currently the workload is divided by the employee’s type (i.e. certificated and classified), this limits the amount of help they can give each other and increases the risk that work will not continue uninterrupted if an employee is absent. Structuring the workload differently would allow each technician to work with the full scope of human resources services, and it would improve customer service when human resource employees are absent or out of the office. As noted previously, the administrative assistant III trains new human resources employees, which reduces her ability to complete her work effec- tively and efficiently. Cross training would allow all human resources employees to support new employees and provide service during employees’ vacations or other absences. Recommendations The district should: 1. Cross train the personnel technicians to enable them to better help with each other’s work and assignments. 2. Consider dividing the workload among the certificated and classified personnel technicians alphabetically by employees’ last names or by school rather than by certificated or classified employees. Helios and HRS Several employees commented about the fact that they are required to enter the same data in both the Helios system and HRS. The consensus of employees was that Helios allows users to enter notes about employees but otherwise does not have significantly different capabilities than Fiscal crisis & ManageMent assistance teaM 23 HUMAN RESOURCES DEPARTMENT HRS. FCMAT concurs with this consensus. The financial and human resources required to support Helios seem significant but its utility is limited. Although keeping notes separate from personnel files and systems is allowable, care should be taken to ensure that any such documents are not discriminatory or illegal. Recommendation 1. Discontinue the use of Helios. Claremont Unified SChool diStriCt 24 HUMAN RESOURCES DEPARTMENT Fiscal crisis & ManageMent assistance teaM 2255 APPENDDRICAEFST Appendices Appendix A Sample Workflow Process Diagram Appendix B Division of Responsibilities for HRS Appendix C Study Agreement Claremont Unified SChool diStriCt 2266 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 2277 APPENDDRICAEFST Appendix A - Sample Workflow Process Diagram Claremont Unified SChool diStriCt 2288 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 2299 APPENDDRICAEFST Appendix B - Division of Responsibilities for HRS LOS ANGELES COUNTY OFFICE OF EDUCATION RECOMMENDATION FOR DIVISION OF RESPONSIBILITIES FOR THE HUMAN RESOURCE SYSTEM (HRS) SCREEN NAMES AND RESPONSIBLE Database FUNCTION/ ACTION NUMBERS in HRS DEPARTMENT EDB New Hire-Workflow 001-New Hire which Scrolls through: 003-Personnel Action 004--Job Assignment 005-Salary/Pay Rate Human Resources 012-Contact Data 013-Confidential Data 014-Misc. Personal Data 030-Payroll Tax Status EDB New Assignments (additional) 004--Job Assignment Human Resources 005-Salary/Pay Rate EDB Job Changes 004--Job Assignment Human Resources 005-Salary/Pay Rate EDB Salary Changes 005-Salary/Pay Rate Human Resources EDB Stipend Changes 004-Job Assignment (possible) Human Resources 005-Salary/Pay Rate EDB Position # Change (with all related fields) 004-Job Assignment Human Resources EDB Retirement Code Changes 005-Salary/Pay Rate Human Resources EDB Leave of Absences 004-Job Assignment Human Resources 005-Salary/Pay Rate EDB Termination of Assignments & Employees 004-Job Assignment Human Resources EDB Personal Data Changes 012-Contact Data • Name 013-Confidential Data • Address • Phone# Human Resources • Contact Data • Birth date • Ethnicity EDB Social Security Number Changes 028-Social Security Number Changes Human Resources EDB H & W Benefits: 020-Standard Benefits Risk Management Adds, Changes, and Deletions 021-Additional Standard Benefits EDB Other Employee-Specific Information • Education 015-Education • Experience and Organization 016-Experience and Organization Human Resources • Skills and Languages 017-Skills and Languages • Licenses, Honors and Comments 018-Licenses, Honors and Comments EDB Employee Seniority: 011-Longevity/Seniority Status Human Resources Creation, Monitoring, Reports EDB W-4 Changes AFTER Initial New Hire 030-Payroll Tax Status Payroll EDB All Voluntary Deductions: 021-Additional Standard Benefits Payroll New Hire, Adds, Changes and Terminations 023-Voluntary Deductions EDB Direct Deposit: 025-Direct Deposit Payroll New Hire, Adds, Changes and Terminations EDB GASB 021-Voluntary Deductions Payroll CDB Salary Tables: 024-Salary Schedule - Column/Step Additions, Changes, All Maintenance 025-Salary Schedule - Range/Step Human Resources 034--Mass Change - Column/Step 035-Mass Change - Range/Step CDB Stipend Tables: 026--Stipend Control Table Human Resources Additions, Changes, All Maintenance 036-Mass Change - Stipends CDB Benefit Tables: 027-Benefits Control Table Human Resources Additions, Changes, All Maintenance CDB District Codes Tables: 028-District Codes Table Human Resources Additions, Changes, All Maintenance CDB Gross-to-Net 002 Earnings Codes 010 SFS & Payroll Vendor Codes 019 CDB Work Calendars 029-Work Calendars Human Resources or Payroll CDB Voluntary Deduction Tables 027-Voluntary Deduction Control Tables Payroll CDB Job Class Tables 004-Job Classification Tables Human Resources CDB Work Location Table 011-Work Location Table Human Resources CDB Speed Key 040-Speed Key Table Position Control Claremont Unified SChool diStriCt 3300 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 3311 APPENDDRICAEFST Appendix C - Study Agreement Claremont Unified SChool diStriCt 3322 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 3333 APPENDDRICAEFST Claremont Unified SChool diStriCt 3344 DARPPAEFNTDICES Fiscal crisis & ManageMent assistance teaM 3355 APPENDDRICAEFST Claremont Unified SChool diStriCt