Audit points out deficiencies in city’s criminal background checks

Although the city has improved its processes for conducting criminal background checks on prospective employees being considered for sensitive positions, a report from the city auditor’s office shows some gaps in the Human Resources Department’s process that could result in “legal, financial, and reputational risk for the City.”

That’s one of the conclusions from an audit recently conducted by the Office of the City Auditor. Although auditors noted that the city’s Human Resources Department has recently made some improvements in its process, those changes do not “ensure departments correctly identify positions that require a (criminal background check) and (do) not ensure departments fill those positions with individuals who pass” such a check.

Auditors noted that certain positions require a criminal background check, but many do not. The problem comes when individuals with criminal histories are put into positions with financial responsibilities or which involve contact with “vulnerable populations” – including children, the elderly and disabled.

The process for criminal background checks is not a simple one. It involves coordination between city departments, individuals being considered for employment in certain positions and the Human Resources Department staff. Only recently did it become possible for applicants to fill out criminal background investigation forms online. Auditors noted that although the electronic system for processing background checks has made the system work better, it has not solved the problem of how to identify positions with financial responsibilities or access to vulnerable populations, auditors said.

For example, Austin Energy and Austin Water both recently posted job openings for a meter technician. Auditors said that the job duties for both positions included work at customers’ homes – and the Austin Energy job required a criminal background check but the Austin Water job did not.

Auditors also noted that criminal background investigation procedures included the word “frequently” in a list of defined terms, “noting that it means working in a (criminal background investigation) position more than two times in a 30-day period.” Auditors wondered if that was meant to imply that individuals who work on sensitive assignments fewer than twice in 30 days would not require a background check.

They noted that these positions can still create a risk to the city. An employee who uses a city credit card only once a month “can misuse that card the same as someone who uses (the card) multiple times per month,” they noted.

Auditors said that the impact of such issues “would be minimized if HRD had a procedure to regularly review positions to determine if the department had correctly identified if the position required” a criminal background check.

The workload for employees dealing with criminal background checks has increased significantly in the last few years. According to the report, the number of criminal background checks the city conducts has grown from 9,465 in Fiscal Year 2019-20 to 12,459 in Fiscal Year 2022-23. That cost the city $62,300 in the latter fiscal year, a 50 percent increase from the cost in FY 2019-20. They noted that these costs did not include additional staff time needed to run the process.

The Human Resources Department now plans to outsource parts of the criminal background check process. Auditors said they had learned that HRD plans to ask City Council in July for authorization to contract with a vendor to do the work.

Auditors also suggested that some problems could be avoided if the city required a criminal background check for all positions. However, they noted that this would increase the cost and HRD said such a move “would conflict with Municipal Civil Service rules and the city’s ‘re-entry friendly practices.’”

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