BUREAU OF HUMAN RESOURCE SERVICES

Michigan Office of the
Auditor General
Thomas H. McTavish, C.P.A.
Auditor General

EXECUTIVE DIGEST #1921098
BUREAU OF HUMAN RESOURCE SERVICES

INTRODUCTION
This report, issued in October 1999, contains the results of our performance audit of the Bureau of Human Resource Services, Department of Civil Service (DCS).

AUDIT PURPOSE
The performance audit was conducted as part of the constitutional responsibility of the Office of the Auditor General. Performance audits are conducted on a priority basis related to the potential for improving effectiveness and efficiency.

BACKGROUND
DCS was established by the Executive Organization Act of 1965. DCS is under the jurisdiction of the Civil Service Commission, which consists of four nonsalaried members appointed by the Governor.

Article 11, Section 5 of the State Constitution specifies the Commission's responsibilities. These responsibilities have been translated into the Rules of the Civil Service Commission.

Human resource related customer services and work force acquisition responsibilities are primarily administered by Bureau staff in the Lansing central office. The Bureau is separated into human resource services groups and teams to provide services to appointing authorities that are necessary to acquire and manage the State's work force. Each group provides its assigned State agencies with human resource management services in the areas of recruitment, applicant assessment, employment list processing, classification, performance management, and student programs. The Detroit regional office maintains an informational office to serve residents and employees of southeastern Michigan.

For the fiscal year ended September 30, 1998, the Bureau's expenditures totaled approximately $4.4 million. As of February 28, 1999, DCS had 66 employees assigned to the Bureau.

AUDIT OBJECTIVES AND CONCLUSIONS
Audit Objective: To assess the effectiveness and efficiency of the human resource related customer services provided by DCS to the State.

Conclusion: We concluded that DCS's human resource related customer services provided to the State were generally effective and efficient. However, we noted reportable conditions related to regional offices, pay-for-performance appointments, limited-term appointments, and emergency appointments (Findings 1 through 4).

Audit Objective: To assess the effectiveness and efficiency of the work force acquisition responsibilities provided by DCS to the State.

Conclusion: We concluded that the work force acquisition responsibilities provided by DCS to the State were generally effective and efficient. However, we noted reportable conditions related to the removal of names from employment lists and the processing of applications (Findings 5 and 6).

AUDIT SCOPE AND METHODOLOGY
Our audit scope was to examine the program and other records of the Bureau of Human Resource Services. Our audit was conducted in accordance with Government Auditing Standards issued by the Comptroller General of the United States and, accordingly, included such tests of the records and such other auditing procedures as we considered necessary in the circumstances.

Our audit procedures included an examination of records and activities primarily for the period July 1, 1997 through February 28, 1999.

To accomplish our audit objectives, we reviewed DCS's organizational structure, annual management plans, performance objectives, and user satisfaction survey responses. We evaluated, on a test basis, human resource related customer services and work force acquisition responsibilities to determine the accomplishment of DCS's performance objectives. We reviewed the internal controls of various activities administered within the Bureau.

AGENCY RESPONSES AND PRIOR AUDIT FOLLOW-UP
Our audit report includes 6 findings and 6 corresponding recommendations. DCS's preliminary response indicated that it agreed with all of the recommendations.

DCS had complied or partially complied with 16 of the 29 prior audit recommendations included within the scope of our current audit. One recommendation was repeated in this report. Twelve recommendations were no longer applicable.

Full Audit Report - #1921098 - BUREAU OF HUMAN RESOURCE SERVICES

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This page was created on 10/15/99.


INTRODUCTION This report, issued in October 1999, contains the results of our performance audit of the Bureau of Human Resource Services, Department of Civil Service (DCS).

AUDIT PURPOSE The performance audit was conducted as part of the constitutional responsibility of the Office of the Auditor General. Performance audits are conducted on a priority basis related to the potential for improving effectiveness and efficiency.

BACKGROUND DCS was established by the Executive Organization Act of 1965. DCS is under the jurisdiction of the Civil Service Commission, which consists of four nonsalaried members appointed by the Governor. Article 11, Section 5 of the State Constitution specifies the Commission's responsibilities. These responsibilities have been translated into the Rules of the Civil Service Commission. Human resource related customer services and work force acquisition responsibilities are primarily administered by Bureau staff in the Lansing central office. The Bureau is separated into human resource services groups and teams to provide services to appointing authorities that are necessary to acquire and manage the State's work force. Each group provides its assigned State agencies with human resource management services in the areas of recruitment, applicant assessment, employment list processing, classification, performance management, and student programs. The Detroit regional office maintains an informational office to serve residents and employees of southeastern Michigan. For the fiscal year ended September 30, 1998, the Bureau's expenditures totaled approximately $4.4 million. As of February 28, 1999, DCS had 66 employees assigned to the Bureau.

AUDIT OBJECTIVES AND CONCLUSIONS Audit Objective: To assess the effectiveness and efficiency of the human resource related customer services provided by DCS to the State. Conclusion: We concluded that DCS's human resource related customer services provided to the State were generally effective and efficient. However, we noted reportable conditions related to regional offices, pay-for-performance appointments, limited-term appointments, and emergency appointments (Findings 1 through 4). Audit Objective: To assess the effectiveness and efficiency of the work force acquisition responsibilities provided by DCS to the State. Conclusion: We concluded that the work force acquisition responsibilities provided by DCS to the State were generally effective and efficient. However, we noted reportable conditions related to the removal of names from employment lists and the processing of applications (Findings 5 and 6).

AUDIT SCOPE AND METHODOLOGY Our audit scope was to examine the program and other records of the Bureau of Human Resource Services. Our audit was conducted in accordance with Government Auditing Standards issued by the Comptroller General of the United States and, accordingly, included such tests of the records and such other auditing procedures as we considered necessary in the circumstances. Our audit procedures included an examination of records and activities primarily for the period July 1, 1997 through February 28, 1999. To accomplish our audit objectives, we reviewed DCS's organizational structure, annual management plans, performance objectives, and user satisfaction survey responses. We evaluated, on a test basis, human resource related customer services and work force acquisition responsibilities to determine the accomplishment of DCS's performance objectives. We reviewed the internal controls of various activities administered within the Bureau.

AGENCY RESPONSES AND PRIOR AUDIT FOLLOW-UP Our audit report includes 6 findings and 6 corresponding recommendations. DCS's preliminary response indicated that it agreed with all of the recommendations. DCS had complied or partially complied with 16 of the 29 prior audit recommendations included within the scope of our current audit. One recommendation was repeated in this report. Twelve recommendations were no longer applicable.