Schools skip background checks to vet casual hires

A new Department of Education audit of the casual hire system that employed some 22,000 people at schools statewide last fiscal year found poor oversight and a lack of monitoring, and concluded schools were failing to follow even basic pre-employment protocols, including ensuring that background checks were conducted before an employee began work.

The report called the inadequacies in the system "unacceptable," saying they could lead to a host of problems, from fraud (through fictitious reporting) to safety concerns if someone with a criminal history is working with children to potential violations of federal employment laws.

Perhaps most alarming, auditors found 101 cases — of 271 hires reviewed — in which schools allowed employees to begin work before they were given clearance by the DOE’s Office of Human Resources. Casual hires are cleared to begin work after a background check uncovers no problems. In some cases the clearance process also involves ensuring that the potential hire is qualified for the job.

Getting clearance, the audit said, can take from two days to two months.

In response to the report, the DOE said it took immediate steps to tighten up its background check requirement for casual hires and has also pledged to boost monitoring, increase training and make long-term systemic changes to address identified oversight problems.

Doug Murata, assistant superintendent for the DOE Office of Human Resources, said the audit made clear that hiring and payroll operations for casual hires need significant improvement.

"We’re using an old hiring and payment system and have it scheduled for upgrade," he said. "In the meantime, now that we know there is a rather serious problem … we can develop manual work- arounds. We’re updating our procedures."

Casual hires are brought on at the discretion of a school principal and include part-time teachers, tutors, student helpers, coaches and janitors. Substitute teachers were not part of the audit because they have their own personnel system.

Most casual hires typically work less than 19 hours a week, and not all of them are on staff for the entire school year. Some are brought on for brief stints multiple times during a year.

The casual hire report is the latest product from a beefed-up DOE internal auditing arm, whose directive is to help the department as it looks to streamline operations, address spending concerns and ensure that its own policies are being followed.

Board of Education members expressed concern over the results of the audit, especially its finding that schools were not following proper pre-employment procedures, including ensuring that background checks had been conducted.

"These are people who interface with children," BOE Chairman Don Hor­ner told the Star-Advertiser. "One person (without a background check) is too many. The wrong person interfaces with children, that is one too many.

"Bottom line: They rated our casual hire system unsatisfactory. That is a serious concern to the department and to the board."

Other problems identified in the audit include:

» Schools were not ensuring that part-time teachers who provide "direct instructional support" had proper qualifications to ensure they were highly qualified, a federal requirement.

» In 40 percent of 271 casual hire positions reviewed, auditors could not find various required personnel documentation (such as an application or a copy of employee’s identification) on file.

» In 37 percent of those cases, an incorrect application was submitted for a position.

» There is no policy or procedure governing the recruitment of casual hires, so schools can make a casual hire "without justification and with less regulation than hiring a salaried employee."

The audit, presented to the BOE last week, said payments to casual hires have a sizable price tag: $91 million in fiscal year 2012. Put in perspective, that’s about 12 percent of state funds spent at the school level. Since hires are made by school administrators, casual hire funds come from school budgets.

All casual hires are terminated at the end of each fiscal year. If they are rehired for the next school year, their records must be updated by the school.

Horner applauded the "candor of the department" in conducting the audit without waiting for a big issue to erupt or for a public complaint.

He added that the problems found in the audit are symptomatic of other systemic challenges at the DOE, including inadequate personnel tracking and pre-employment systems.

"We’re asking the principals to do all the hires without the technology and the infrastructure to support them," he said.

Murata agreed, the assistant superintendent for the DOE Office of Human Resources adding that some changes to casual hiring processes will require longer-term fixes, including switching to a new computer system.

He also said that while it is a major concern that employees were allowed to begin work without ensuring a background check was completed, the system caught that inadequacy fairly quickly because casual hires cannot be paid unless they have completed all requirements and received a DOE clearance.

"That’s not the best safeguard," he acknowledged.

Every casual hire is required to have a background check, except those who were salaried employees with the DOE prior to July 1, 1990. Background checks are also not necessarily conducted every year. Casual hires who have a background check on file and who have not had a break in service of more than six months do not need a new check conducted.

The audit suggested significant changes around the background check system to not only expedite the process, but also revisit the exemption for former employees who were with the DOE prior to 1990. It also suggested linking its employee listings with federal and state criminal databases to periodically check for criminal history updates.