10-28-15 - 15-110 - Performance Audit - Citywide – Staffing Agency Vendor Contract Compliance - Adecco
Between fiscal year (FY) 2010 and FY 2015 the City of Albuquerque (City) paid Adecco Employment Services Incorporated (Adecco) approximately $23.3 million for staffing agency services. Of that, $8.2 million was paid during the 18-month audit testing period of July 1, 2013 through December 31, 2014. The most significant issue identified during testing was the net over billings of $514 (0.47%) on a sample of 24 invoices. If the error amount of $514 is extrapolated to the entire $8.2 million paid to Adecco during the 18-month period tested, it can be projected that Adecco over billed the City $38,540.
Adecco also had issues with not ensuring other information on the invoices, and information on the periodic reports is accurate. The City relies on the information from the invoices and reports to assess use and cost of staffing agency employees, and when information is not correct it can hinder the City’s monitoring process. Finally, issues were identified with Adecco filling positions that are not included on the approved contract; not removing staffing agency employees from City positions once they have worked for two continuous years; not ensuring that employees take at least a 90-day break after working at the City in any capacity for two continuous years, before placing them at the City again; and not ensuring that it receives the proper approved request forms from the City before sending staffing agency employees to fill City positions.
- Refund the City for over billings in the amount of $38,540.
- Perform internal review of employee records for accuracy.
- Send accurate information in a timely manner to the City.
- Fill only positions included on the approved contract.
- Ensure proper approved requests forms are received each time a position has been requested to be filled.
- Remove any staffing agency employees who have been placed at the City for more than two continuous years.
- Ensure staffing agency employees take at least a 90-day break after having worked at the City for more than two continuous years.
Adecco’s Corporate Legal is reviewing the request for a refund due to overbilling the City. Adecco agreed to implement all other recommendations.