Overview
MCCA did not retain a centralized list of employee complaints that was readily available for us to use to identify a testing population for non-union employee complaints. If MCCA does not have an adequate process for handling employee complaints regarding personnel issues, it may not identify trends in employee complaints or ensure that all employee complaints are addressed and handled in a consistent, timely, and appropriate manner.
Authoritative Guidance
The US Government Accountability Office’s Standards for Internal Control in the Federal Government, known as the Green Book, sets internal control standards for federal entities. It is known as a best practice for state agencies. The Green Book defines internal controls in the following way:
Internal control comprises the plans, methods, policies, and procedures used to fulfill the mission, strategic plan, goals, and objectives of the entity. Internal control serves as the first line of defense in safeguarding assets. In short, internal control helps managers achieve desired results through effective stewardship of public resources.
The Green Book also states, “Management should design control activities to achieve objectives and respond to risks. . . . Management should implement control activities through policies.”
Additionally, an article in the National Law Review, “Six Best Practices of Human Resource Documentation,” states,
There are a number of opportunities where creating effective documentation can later serve to protect the company if a conflict arises: (1) counseling, discipline and termination of employment; (2) discrimination and harassment complaints; (3) promotions and demotions; (4) events that could lead to adverse employment actions (e.g., attendance, co-worker altercations, customer complaints, insubordination or layoff/RIFs); (5) the interactive process for ADA accommodation requests; (6) EEO or harassment training provided to employees; and (7) other situations - use business judgment and common sense.
Employment-related documentation should be created contemporaneously to the event (at or very near the time the event occurs). Documentation can also be in the form of a supervisor’s log that may involve more frequent, brief entries. Any follow-up discussions on issues previously documented should also be memorialized. For the destruction of documentation, it is important to have a well-organized, well-publicized (to managers and HR) document retention policy and timeline, which addresses exceptions for the receipt of a claim, litigation, a government investigation or audit or the instruction of legal counsel.
It is an appropriate internal control to document, in writing, important issues to ensure they are not lost or forgotten due to competing priorities.
Reasons for Issue
MCCA’s now-previous director of human resources told us in an interview that, while MCCA’s “Non-Discrimination/Non-Harassment Policy” outlined the steps that the Human Resources Department should take to handle an employee complaint, the department handled each case differently. Additionally, the Human Resources Department did not retain a list of employee complaints because the now-previous human resources director stipulated that they were able to remember who had filed the complaint because of the small number of MCCA employees.
Recommendations
- MCCA should develop, document, and implement internal controls over the process of handling employee complaints that would include the tracking and documentation of complaints.
- MCCA should create and retain a centralized list of complaints to ensure that all complaints are addressed in a consistent, timely, and appropriate manner.
Auditee’s Response
The MCCA agrees that it did not adequately track employee complaints during the audit period. The MCCA acknowledges the importance of establishing robust internal controls for tracking employee complaints and grievances at the MCCA for nonaffiliated employees. The MCCA historically had a practice that governed all employee complaints during the audit period which involved human resources documentation, referral to legal counsel if necessary, and follow up correspondence with employees. That said, the MCCA did not have a central system in which all these matters were officially recorded for purposes of record keeping.
Under current leadership, the MCCA has conducted several reviews of existing policies and procedures to further examine how they align with our broader goals of our organization, and this has included review of existing policies and procedures for the handling of employee complaints. The MCCA is currently working to:
- Define clear objectives for grievance and complaint handling, focusing on fairness, timeliness, and confidentiality.
- Establish clear guidelines and timelines for initiating investigations upon receiving grievances and complaints, ensuring that responsible personnel promptly assess and prioritize grievances and complaints based on their severity and legal implications.
- Develop a comprehensive grievance policy outlining employee rights, procedures for filing grievances, and escalation paths.
- Specify roles and responsibilities of [human resources] personnel, supervisors, and employees in the grievance and complaint process.
- Implement a grievance and complaint tracking system to record grievances and complaints, track progress, and document outcomes.
- Enhance our record-keeping processes to maintain comprehensive records of all complaints, including whistleblower letters or anonymous complaints, with a focus on documenting the date received, nature of the complaint, parties involved, investigation findings, and actions taken.
- Conduct regular reviews of grievance and complaint handling procedures to identify areas for improvement.
Additionally, the MCCA has scheduled a new, comprehensive training for [human resources] staff and supervisors on the topic of responding to employee complaints. This training has been scheduled to occur prior to September 30, 2024. The MCCA is committed to fostering a fair and supportive work environment where employee complaints are addressed promptly, fairly, and in accordance with clear policies and internal controls.
Auditor’s Reply
Based on its response, MCCA has taken measures to address our concerns in this area.
| Date published: | August 19, 2024 |
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