Division of Personnel
Executive Summary

This report is an update on the performance evaluation that was reported on during the December 1995 Interim. The West Virginia Division of Personnel is the state's personnel agency. One of theprimary responsibilities of the Division is to maintain a Human Resource Information System (HRIS).
ISSUE AREA 1: Follow-up on $2 Million Reserve.

West Virginia Code §29-6-23 authorizes the Division of Personnel "to charge each agency, department, division, or unit of state or local government served by the DOP...for personnel services rendered." The DOP's budget is established by assessing fees based on the number of Full-Time Equivalents (FTEs) in each state agency. The DOP is charging agencies a flat $155 per FTE annually whether the position needs DOP's full services or limited services.

The Legislative Auditor reported in December of 1995 that the DOP had accumulated a surplus balance of approximately $2 million, as of June 30, 1995. The DOP had a cash balance of $1.3 million and had $787,475 in accounts receivable. According to the Division of Personnel, of the $787,475 in accounts receivable, $507,809 was a credit for over-billing to the Department of Education, $125,589 was for temporaries employed by the defunct Division of Tourism and Parks, and $59,020 was deferred for various County Health Departments.

The Division of Personnel has a June 30, 1997 cash balance and accounts receivable of $1,235,103. A new Human Resource Information System (HRIS) is in the planning stage. The DOP's Director believes that the Division can purchase a basic system with a minimum of modifications for approximately $650,000 in initial costs. The DOP has allocated the $650,000 from the June 30, 1997 balance (approximate $1.1 million) for the purchase of a HRIS. In addition, the DOP budgets two months of expenditures which is maintained in the balance of the account. According to the DOP, this amount is approximately 460,000 which cover personal services, benefits, operational expenses and increment pay. The HRIS reserve and two-month budget reserve totals approximately $1.1 million.