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Laws are for us serfs to obey, not our government masters who make them
Audit assails Mesa over temp workers Report: Numerous departments broke rules by Gary Nelson - Jan. 25, 2012 09:27 AM The Republic | azcentral.com An internal audit has found numerous policy violations in the way Mesa hires, uses and pays its growing pool of temporary workers. Temps have become a bigger part of Mesa's labor force because budget cuts have decimated some departments. Mesa is paying temporary agencies $4.4 million this fiscal year, compared with $3.2 million in 2008-09. That, City Attorney Debbie Spinner told the City Council's audit and finance committee, "has raised a number of tactical, operational and legal issues that the city hadn't faced before." Spinner said her staff is working with the city manager's office and human resources department to clarify policies and procedures. The examination by city auditor Jennifer Ruttman found: Temporary workers are supposed to be placed under city job titles to define their duties and ensure proper compensation. But that doesn't happen all the time. Ruttman said the policy should be revised to give departments more flexibility. Required background checks were not always performed, even though some temps were hired to work with minors. By policy, temps are to be paid 5 percent less than the lowest "step" assigned to their job title. But most are paid more than that, and in some cases their pay exceeded the maximum level assigned to their job titles. In some cases -- for example, a former city employee with expertise in the job -- the higher pay might be justified, Ruttman said, but written director-level approval is needed. No such written approval was found. Wrong information on time cards "exposes the city to increased risk for workers compensation claims and other liabilities." Temps who work more than 20 hours in any given week are required to take a 90-day break in service after 12 months, lest they be able to claim they have become de facto city employees. Some violations of that rule were found. Proper paperwork was not available for some independent contractors. Asking departments to produce valid contracts "was a frustrating experience, to say the least," Ruttman said, even though most of the missing contracts were for small amounts. In violation of policy, a city employee's business was hired to provide services to another city department without competitive bidding. The situation ended in 2010 and the employee no longer works for Mesa. Payments don't always match the terms of a contract. Some payments are made before all the required work has been done and in some cases, "well in excess of the maximum specified in the contract." Some departments have blurred the lines between contractors and full-time employees, exposing Mesa to possible IRS penalties. Ruttman said IRS fined Mesa for similar violations in the 1980s. Committee chairman Alex Finter noted that Ruttman's report did not identify departments or individuals, but said he will be taking names if problems aren't fixed. "If you feel like you get to the point where you're not having that cooperation or there are any challenges, I think we would like to know the names," Finter told Ruttman. "We'd like to have them here and report and find out why that isn't occurring." "At follow-up time, that will be the approach," Ruttman said. Ruttman said her staff has met with all relevant city departments, told them what the rules are, and will follow up in a year to ensure the rules are being followed. She said the city manager's office and human resources department have been asked to review temporary-worker polices "to make sure that they appropriately meet today's needs. |