BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Adopt Resolution Approving the Amended Compensation Plan for Unrepresented Employees in the Executive Service (July 1, 2018 through June 30, 2022).
End
RECOMMENDATION:
Recommendation
A. Receive information pertaining to the August 2019 CalPERS findings temporary upgrade pay reported as special compensation; and
B. Adopt the Resolution APPROVING THE AMENDED COMPENSATION PLAN FOR UNREPRESENTED EMPLOYEES IN THE EXECUTIVE SERVICE - (JULY 1, 2018 THROUGH JUNE 30, 2022).
Body
SUMMARY:
This item pertains to information on a recently completed CalPERS Office of Audit Services on Valley Water's practices of reporting temporary upgrade pay as special compensation. Government Code (GC) section 20636 and California Code of Regulation (CCR) 571 and 571.1 provide that in order for compensation to be reportable to CalPERS, the compensation must meet the definition of "Compensation Earnable."
In August 2019, CalPERS conducted an audit of our practices pertaining to the reporting of temporary upgrade pay as special compensation. Valley Water was one of 60 agencies selected to participate in the audit. The object of the review was to determine if these public agencies had policies and/or procedures specific to special compensation that was duly approved and adopted by the governing body; and to determine that the special compensation was allowable and accurate and report to CalPERS during the period it was "earned" versus when it was "paid" to the employee by the agency.
Valley Water's audit was limited to a review of a sample of employee records for period January 1, 2017 through March 28, 2019. CalPERS requested the records of 6 individuals that were employed by Valley Water during this time.
The audit found that Valley Water does not meet the requirement of having a policy for unrepresented employees in the Executive Service (Unclassified) with language specific to special compensation that has been duly approved and adopted...
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