Summary of March 27, 2025 School Board Meeting
The Math Office presented its annual Math Monitoring Report which included recent Measures of Academic Progress (MAP) data on math achievement and growth and provided updates from Math Coaches and Interventionists on instructional practices. MAP data showed that fewer APS students are making their expected growth this year compared to last year although the share of students in the lowest achievement category has shrunk. Implementing Math Workshop is a priority for secondary schools.
Audit Report - Overtime and Human Resources
Overtime
This audit was initiated due to management concerns about payroll processing and overtime compensation. An audit of overtime was approved at the September 2024 Board Meeting and added to the Annual Audit Plan for fiscal year 2024-2025. Overtime applies to non-exempt employees working over 40 hours per week, and the Payroll Department is responsible for processing payments. The department, recently moved from Human Resources to Finance and Management Services, has experienced high employee turnover. The slidedeck from this presentation can be found here.
Key Findings
Loss of Accountability for Overtime Records: Overtime is recorded manually, but some documentation lacks accountability. Payroll oversees record retention but has had inadequate management oversight since 2019. A Payroll Supervisor search is in progress.
Lack of Standard Operating Procedures (SOPs): The Payroll Department has not maintained documented SOPs for key payroll processes. This is a major liability. Drafting began in February 2025.
Compliance with Overtime Pay Regulations: A review confirmed that only non-exempt employees received overtime compensation, complying with the Fair Labor Standards Act.
Overtime Overpayments: From January to October 2024, 27 overpayments totaling $12,230.53 were identified and reimbursed. No overpayments occurred from July 2024 to February 2025.
Budgeting Challenges: Some department and program managers struggled to identify the sources of overtime expenses in their budgets.
Lack of Overtime Assignment Guidelines: No uniform policies exist for assigning overtime, with decisions left to department managers or employee volunteers.Lack of Overtime Assignment Guidelines: No uniform policies exist for assigning overtime, with decisions left to department managers or employee volunteers.
Recommendations & Next Steps
Record Retention: Develop SOPs for document retention, improve management oversight, and consider co-sourcing if understaffed.
SOP Development: Implement SOPs for all major payroll functions, ensuring alignment with APS policies and regulations.
Preventing Overpayments: Continue diligence in reviewing overtime payments and explore system-generated error reports. Develop a policy or PIP for equitable overtime assignments, supplementing Policy G-3.2.2.30.
Human Resources
The HR Department was audited for the 2024-2025 fiscal year due to its high-risk nature, regulatory responsibilities, and history of high turnover, leading to gaps in knowledge and business continuity. The slidedeck of this presentation can be found here.
Management Controls Assessment
The audit found HR’s management controls unsatisfactory, with operational deficiencies, lack of consistency, and financial risks due to payroll errors. High staff turnover further exacerbates these issues. However, the new HR administration has been actively working to fill critical positions in the past three months.
Key Findings
Standard Operating Procedures (SOPs)
HR lacks consistent and documented business practices. Risk level is HIGH for compliance issues.
Existing process documentation is incomplete.
Succession Planning & Business Continuity
No formal succession planning exists.
Past leadership did not prioritize business continuity.
High turnover increases risks, affecting benefits administration.
Regulatory Compliance
No documented training or SOPs for HR regulations.
No HR compliance training of knowledge. Risk level is HIGH for potential legal liability.
Customer Service Delays
Employees face difficulties reaching HR, especially for benefits-related inquiries.
Slow response times and lack of communication were common complaints.
Risk level is HIGH for employee dissatisfaction and employee retention risks.
Training & Resources
HR employees report inadequate training and cross-training.
Only 12% feel they have sufficient resources to perform their duties.
Human Resources Survey Results - Areas for Improvement
Support for APS Employees – HR staff need better training, improved response times, and enhanced communication skills.
HR Experience Issues – Unclear policies, leave-related complaints, and inconsistent guidance from HR staff.
HR Employee Needs – More training, better internal collaboration, streamlined processes, and improved resource allocation.
Recommendations
Develop and align SOPs with regulations and policies.
Address compliance and risk management issues.
Improve customer service and implement a quality improvement plan.
Enhance HR systems and explore automation.
Improve recruitment, onboarding, and retention strategies.
Provide professional training for HR employees.
Audit Follow-up
Monthly progress reports will be submitted to the Internal Auditor and shared with the Audit Committee.
