Loading...
HomeMy WebLinkAboutStaff Report 9669City of Palo Alto (ID # 9669) Policy and Services Committee Staff Report Report Type: Action Items Meeting Date: 10/23/2018 City of Palo Alto Page 1 Summary Title: Status Update of Audit for Disability and Work Compensation Rates Title: Policy and Services Committee Recommends the City Council Accept the Status Update of the 2016 Disability and Workers Compensation Rates Audit From: City Manager Lead Department: Human Resources Recommendation Staff recommends that Policy and Services Committee recommend that the City Council accept the attached Status Update of Audit Recommendations for the 2016 Disability Rates and Workers’ Compensation Audit. Background The City Auditor’s Office issued an audit with an objective to assess the effectiveness of activities to manage and minimize disability retirements and workers’ compensation claims. This audit included the review of processes to ensure employee safety, tracking and reporting activities, contract administration, and efficiency of claim processing. As a result of the audit, procedures and processes to improve claim monitoring have been implemented and there is new focus on timeliness of claim reporting and improved and streamlined recordkeeping where possible. Training for supervisors on how to enter claims into third-party administrator portal has been completed to provide streamlined claim filing. This is a critical first step necessary to provide an injured employee with medical treatment as soon as possible. Staff has continued to work on addressing and completing audit recommendations. Staff last reported on audit status to the Policy and Services Committee in February 2018. At that point, seven recommendations identified in the audit had been completed. Discussion City of Palo Alto Page 2 The Human Resources (HR) Department has now completed 10 of the 15 recommendations. The recommendations and actions taken for completion are listed in the attached document (Attachment A). The attached report also provides an update of the status of the recommendations. HR is in the process of coordinating employee safety training to minimize strain injuries, implementing supervisor training to improve investigations and injury prevention, as well as working with third-party administrator (York Risk Services) to ensure correct data. In addition, HR team will be working with the Administrative Services Department SAP Functional and Payroll teams to test and implement the updated CalPERS report, which includes correcting disability coding. Staff expects to have all recommendations completed by June 2019. Attachments: Attachment - Status of WC Audit Recommendation 2018_final P and S Oct 23 STATUS OF AUDIT RECOMMENDATIONS DISABILITY RATES AND WORKERS’ COMPENSATION – ISSUED 10/17/16 PAGE 1 The City Manager has agreed to take the following actions in response to the audit recommendations in this report. The City Manager will report progress on implementation six months after the Council accepts the audit report, and every six months thereafter until all recommendations have been implemented. Recommendation Responsible Department Original Target Date and Response Current Status Implementation Update and Expected Completion Date Finding 1: The City’s Injury and Illness Prevention Program (IIPP) is comprehensive but has lost its effectiveness due to the loss of its City Safety Officer. 1.2. HR update the safety manual, including supplemental tools and guidance posted on the intranet, to ensure: •The roles and responsibilities over the IIPP are redefined. •The City’s IIPP complies with all Cal/OSHA standards and other applicable safety laws. Human Resources Concurrence: Agree Target Date: March 2017 Action Plan: Once appropriate staff resources are in place, the roles and responsibilities can be reestablished to ensure the safety manual (IIPP) is reviewed and updated as necessary. While a few safe work practices have been updated, such as the Heat Stress Prevention Guidelines in July 2014, a thorough review will be conducted and any necessary updates will be completed. Completed September 2018 Management Update: All safe work practices have been reviewed and updated. Link to Heat Illness Prevention videos in English and Spanish are now posted on the intranet. Manuals and checklists on the intranet are now in working order. January 2018 Management Update: Updates have been posted to HR Risk Management and Safety website, specifically targeting Ergonomic awareness. Review of all other safe work practices will continue. Expected Completion Date: June 2018 1.3. HR review departmental procedures and safety requirements to ensure they align with the revised IIPP and City policy and procedures. Human Resources Concurrence: Agree Target Date: December 15, 2016 Action Plan: HR is in process of securing a safety specialist to conduct periodic inspections of City facilities for hazard assessment. This comprehensive evaluation will include determining if any corrections need to be completed, including updating or implementing work procedures. In Progress September 2018 Management Update: Supervisor safety training presentation has been identified to train supervisors on effective injury and illness prevention strategies and conducting accident investigations. Expected Completion Date: January 31, 2019 January 2018 Management Update: Currently, the following components of an effective IIPP are ongoing: Accident Investigation: supervisors investigate all accidents, injuries and near-misses and make appropriate changes to minimize recurrence. Attachment A STATUS OF AUDIT RECOMMENDATIONS DISABILITY RATES AND WORKERS’ COMPENSATION – ISSUED 10/17/16 PAGE 2 Recommendation Responsible Department Original Target Date and Response Current Status Implementation Update and Expected Completion Date Hazard Correction: Supervisors correct conditions that are discovered during their monthly inspections or after an injury or accident to prevent reoccurrence. Training: Supervisors are responsible for ensuring their employees are trained to perform work safely. Documentation: Safety training sign-in sheets and investigation reports are maintained. Communication: Employees know how to inform management about health and safety matters. Expected Completion Date: June 2018 1.5. HR identify industry-specific ergonomics and general wellness training opportunities to minimize common injuries, and coordinate with departments to ensure regular training is provided to employees. Human Resources Concurrence: Agree Target Date: September 16, 2016 Action Plan: HR will coordinate industry- specific ergonomic training, similar to training provided to Parks maintenance employees in 2010 and Library employees in 2014. We agree industry-specific ergonomic training serves as a reminder for example, that the best way to prevent back injuries is to develop habits that reduce the strain placed on the back. In Progress September 2018 Management Update: Due to training staffing changes, industry-specific ergonomic training has not been coordinated and will be scheduled in Spring 2019. Expected Completion Date: May 2019 January 2018 Management Update: Have identified trainer and in process of establishing contract and training dates. Using claim data for previous 5 years, have identified top 5 body parts injured with objective to train employees with highest exposure and focus on injury prevention. Expected Completion Date: May 2018 Finding 2: Injured employees’ benefit eligibility is not accurately and completely tracked and monitored, resulting in both overpayments and underpayments of workers’ compensation benefits. 2.1. HR continue working with ASD and CalPERS to address the disability Human Resources Concurrence: Agree In Progress September 2018 Management Update: Implentation of new disability coding delayed due STATUS OF AUDIT RECOMMENDATIONS DISABILITY RATES AND WORKERS’ COMPENSATION – ISSUED 10/17/16 PAGE 3 Recommendation Responsible Department Original Target Date and Response Current Status Implementation Update and Expected Completion Date leave benefits that were incorrectly reported as compensation to CalPERS. Target Date: February 2017 Action Plan: HR worked with Payroll to identify wage codes and required corrections needed to fix CalPERS payroll report. to priority FLSA project and Union contract implementation. Testing dates under review with ASD. Expected Completion Date: June 2019 January 2018 Management Update: SAP Functional has configured new disability coding to make correction to CalPERS report. Next steps include testing by Payroll and HR to move forward with correction which have been delayed due to other priority projects. Expected Completion Date: June 2018 2.2. HR review the 22 claims that accounted for 87 percent of the total additional city benefits difference in Exhibit 11, and take necessary action to address any errors identified. Human Resources Concurrence: Agree Target Date: July 2016 Action Plan: HR working on timecard amendments to address errors with 2 Public Safety officers whose claims were initially delayed when claims first submitted and final determination resulted in denial and non-acceptance. Completed September 2018 Management Update: HR reviewed 22 claims and completed action on errors where possible. January 2018 Management Update: HR reviewed 22 claims and action on errors where possible still under review. Expected Completion Date: May 2018 2.3. HR review the existing disability leave management process in Exhibit 12 and determine the optimal monitoring structure, update the tools and procedures, and allocate sufficient and skilled resources to ensure: a. Benefit eligibility and work status of injured employees is accurately, completely, and timely tracked including: • Start date of disability Human Resources Concurrence: Agree Target Date: December 16, 2016 Action Plan: a. HR is exploring better methods to track temporary disability and return-to-work status accurately, completely and timely. b. HR will also improve process of maintaining timely communication with York. c. HR staff will explore how to improve management of disability Completed September 2018 Management Update: a. Completed- York has identified return-to- work report which York claims staff has now incorporated to track modified duty and lost time status. HR staff is working with York to ensure data reliability. d. Completed- HR explored how to audit benefit notices and vouchers issued by York and determined that comparison is not possible due to difference between what the City pays highly compensated injured employees and state STATUS OF AUDIT RECOMMENDATIONS DISABILITY RATES AND WORKERS’ COMPENSATION – ISSUED 10/17/16 PAGE 4 Recommendation Responsible Department Original Target Date and Response Current Status Implementation Update and Expected Completion Date • Date released back to work by the treating physician • Date returned to modified duty, including the assignment and payroll code used • Date returned to full duty b. Any changes in work status are communicated to York c. Disability leave time buckets are updated as soon as HR is notified of the status change. d. Benefit notices and vouchers issued by York are consistent with the timecards and actual benefits paid through payroll. e. Employees comply with the City policy requiring timely submission of work status notes. leave buckets in SAP. d. HR will explore how to audit benefit notices and vouchers issued by York to ensure they are consistent with timecards. This would be a manual process that may not be able to be supported. e. HR will work with supervisors to ensure employees comply with City policy requiring timely submission of work status notes. f. HR will explore options for improved disability leave management and tracking as part of the SAP replacement RFP process. requirements. HR posts benefit notice on HR site notifying employees regarding benefit notice TD and salary continuation on paycheck. Handout explaining how to interpret York notice provided to impacted employees. January 2018 Management Update: 80% complete a. In progress- York is able to track return- to-work in claim file in “notes,” which does not provide ability to run report. HR still exploring improved tracking methodology. b. Completed- The workers’ compensation desktop procedures have been reviewed and revised to include the most effective monitoring process based on the tools, systems and resources currently available. c. Completed- Central email box was created to receive work status notes. Monitoring now in place morning and afternoon as well as establishing timely responses. Work procedures have been established to ensure the monitoring and management of the box, including process in place with support staff to track and monitor start and end dates of STATUS OF AUDIT RECOMMENDATIONS DISABILITY RATES AND WORKERS’ COMPENSATION – ISSUED 10/17/16 PAGE 5 Recommendation Responsible Department Original Target Date and Response Current Status Implementation Update and Expected Completion Date disability leave buckets. d. In progress- HR explored how to audit benefit notices and vouchers issued by York and determined that comparison is not possible due to difference in TD payments. HR will review with York to determine if they can track the salary continuation TD code 7200 as well as the difference between what the City pays highly compensated injured employees and state requirements. e. Completed- 1. Procedure document was updated and posted on City website in 2016. Roles of WC staff members, third party administrator, injured employee’s and their supervisors has been streamlined and documented in detail. 2. Training was completed in June 2016; 74% of supervisors/managers attended. Created training video which is posted on the HR Workers’ Compensation intranet site and PowerPoint slides for future reference for supervisors. Expected Completion Date: March 2018 STATUS OF AUDIT RECOMMENDATIONS DISABILITY RATES AND WORKERS’ COMPENSATION – ISSUED 10/17/16 PAGE 6 Recommendation Responsible Department Original Target Date and Response Current Status Implementation Update and Expected Completion Date 2.4. HR work with ASD to ensure that the data necessary for disability leave management is captured through time reporting in SAP to support the process, including: a. Revising the City’s payroll procedures, Policies and Procedures 2-06/ASD, to provide clear instruction for reporting disability leave on SAP timecards. b. Configuring the SAP system to: • Track compensation reportable to CalPERS separately. • Track medical appointments that qualify as disability leave by creating a separate payroll code. • If feasible and cost- effective, limit the number of days each employee can code disability leave or modified duty on their timecard based on their position. Human Resources / Administrative Services Concurrence: Agree Target Date: February 2017 Action Plan: a. HR following up with ASD Payroll on feasibility to revise City payroll procedures; otherwise, will include steps in City’s Workers Compensation policy. b. ASD and HR have determined how to code public safety temporary disability as “PERSable” and non-public safety temporary disability as “non-PERSable” by using different SAP codes. - A separate timecard code (7600) is being developed to track medical appointments. - Limiting the number of hours each employee can code disability leave can be accomplished when disability leave bucket is established; may not be feasible for modified duty and requires further review. In Progress September 2018 Management Update: 50% complete b. 1. In Progress- SAP Functional has configured new disability coding to make correction to CalPERS report.Next steps include testing by Payroll and HR to move forward with correction which has been delayed due to other priority FLSA and Union contract implementation project. 3. Not started- HR discussed new process with SAP Functional to develop new SAP coding system for workers compensation tracking. At this time, determined not feasible in SAP. Instead, HR will review new HR ERP solution to look for improved coding process. Expected Completion Date: June 2019 January 2018 Management Update: 50% complete a. Completed- HR has drafted Timecard Disability and Modified Duty Coding guideline which will be attached to City’s Workers Compensation policy b. 1. In Progress- SAP Functional has configured new disability coding to make correction to CalPERS report.Next steps include testing by Payroll and HR to move forward with correction which has been STATUS OF AUDIT RECOMMENDATIONS DISABILITY RATES AND WORKERS’ COMPENSATION – ISSUED 10/17/16 PAGE 7 Recommendation Responsible Department Original Target Date and Response Current Status Implementation Update and Expected Completion Date delayed due to other priority projects. 2. Completed- New SAP payroll code has been created by ASD and tested by HR to track medical appointments separately from disability leave. An email communication was distributed to city staff on use of new code. 3. Not started- HR discussed new process with SAP Functional to develop new SAP coding system for workers compensation tracking. At this time, determined not feasible in SAP. Instead, HR will review new HR ERP solution to look for improved coding process. Expected Completion Date: June 2018 Finding 5: Workers’ compensation revenues, costs, and performance data are not clearly reported for informed decision making. 5.2. HR work with York to identify useful performance measures and establish procedures to ensure reliable reporting of performance data using a consistent methodology. Human Resources Concurrence: Partially Agree Target Date: January 2017 Action Plan: HR will explore best practice performance measures and establish procedure to ensure reliable reporting. Completed September 2018 Management Update: A set of best practice measures have been identified and HR has developed a consistent methodology to ensure reliable reporting. January 2018 Management Update: HR has worked with York to identify useful performance measures available on York Scorecard. HR participating in webinar to explore workers compensation best practice metrics. Expected Completion Date: March 2018