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10-28-15 - 15-110 - Performance Audit - Citywide – Staffing Agency Vendor Contract Compliance - Select Staffing

Between FY 2010 and FY 2015, the City paid Select Staffing approximately $29.5 million to provide temporary staffing agency employees to help supplement the City’s workforce. As part of the contract, Select Staffing is required to comply with the terms that are detailed in the contract and RFB. However, based on the testing and review results of this audit there are several areas where Select Staffing is not following the contract and RFB terms. Select Staffing is not ensuring that the information on the invoices and periodic reports is always accurate, which has led to incorrect billing rates being listed. In addition, by not ensuring information on invoices and reports is accurate, Select Staffing hinders the City’s ability to perform proper reviews of the information. Select Staffing is also not ensuring that approved request forms are maintained for every staffing agency position filled at the City. By not maintaining these records Select Staffing could cause unapproved costs to be incurred, which may not be paid by the City when staffing agency employees are not properly approved before working. In addition, Select Staffing is not ensuring that the staffing agency employees they send to fill City positions have the proper qualifications for the job duties. This could potentially cause a liability for the City if staffing agency employees perform job duties they do not have the proper training for. Finally, Select Staffing is not pulling staffing agency employees from positions after they have been at the City for more than two consecutive years. This could cause a potential liability for the City if staffing agency employees, who have been used at the City for a continuous two-year period, feel that they are due permanent City employee benefits. It is imperative that Select Staffing ensure all contract and RFB terms are being complied with, and that all information sent to the City is accurate and complete.

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Between fiscal year (FY) 2010 and FY 2015 the City of Albuquerque (City) paid New Koosharem Corporation, also known as Select Staffing, approximately $29.5 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 inaccurate billing rates on invoices. Of the 61 staffing agency employee billings listed on the 24 invoices tested, 7 were over billed by a total of $289, and 18 were under billed by a total of $364. These errors caused a net under billing of $75.

Select Staffing 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 Select Staffing not removing staffing agency employees from City positions once they have worked for two continuous years; not verifying that staffing agency employees had the proper qualifications for the jobs filled; and not ensuring that it maintains the proper approved request forms from the City for positions filled.


Select Staffing should:

  • Perform internal review of employee records for accuracy.
  • Send accurate information in a timely manner to the City.
  • Ensure staffing agency employees have the proper qualifications for the positions filled.
  • Ensure proper approved requests forms are maintained for each position that has been requested to be filled.
  • Remove any staffing agency employees who have been placed at the City for more than two continuous years.

Select Staffing agreed with the recommendations and indicated that they will be implemented promptly.