State of Nevada
Department of Administration
Division of Internal Audits

Audit Report

Department of Corrections

Report No. 13-03
December 2012

INTRODUCTION

At the direction of the Executive Branch Audit Committee, we conducted an audit
of the Nevada Department of Corrections (Department). Our audit addressed the
following four questions:
./
./
./
./

What is the Department's role?
What services must the Department provide?
Is the State the proper level of government to provide these services?
If State government is the appropriate level of government, is the
Department carrying out its duties efficiently and effectively?

Our audit focused on whether the Department can enhance oversight of doctors,
expedite hiring processes and enhance the prison industries program.

Department's Role and Public Purpose
The Nevada State Prison was established in 1864; the name was changed to
Department of Corrections in 2001. The Department is overseen by the Board of
Prison Commissioners (Board) which consists of the Governor, Secretary of
State, and the Attorney General. The Governor serves as the President of the
Board, and the Secretary of State serves as the Secretary.
The Department has seven correctional facilities, ten conservation camps, one
restitution center and one transitional housing facility.
In addition, the
Department administers the Prison Medical Division and Silver State Industries
(Prison Industries). The Director of the Department is appointed by the Governor
and reports to the Board. The Director is responsible for the administration and
supervision of all institutions and facilities. The Director is also responsible for
employing individuals to facilitate the supervision, custody, treatment, care,
security and discipline of all offenders under the jurisdiction of the Department.
See Exhibit I for the Department's organizational structure applicable to this
audit.
The legislatively approved biennial budget including adjustments for fiscal years
2012 through 2013 was $571.5 million. See Exhibit II for sources of funding.
The Department was approved for 2,735 positions and houses approximately
12,750 inmates.

1

Exhibit I
Department of Corrections
Organizational Chart
Board of Prison
Commissioners

I
Director

I

I
Deputy
Director
Operations

J
I
Human
Resources

Deputy Director
Industrial
Programs

I
Medical
Director

I

I

I

7

Personnel

Medical
Division

Prison Industries

Correctional
Facilities

10
Conservation
Camps

1 Transitional
Housing
I---

1 Restitution
Center

I---

2

Exhibit II
Department Funding Sources for Fiscal Years 2012 - 2013

Other

Other revenues include: Prison Industry sales,
room, board, and transportation charges.

Federal
Fund
1%

Inter-Agency
Transfer
3%

The State is the appropriate level of government to receive, retain, train and
release offenders. The Department provides a single source of contact statewide
for law enforcement, local governments and other states in dealing with
individuals convicted of crimes in the State court system.

Scope and Objectives
We began audit work in March 2012. In the course of our audit, we interviewed
officials from the Department, analyzed reports generated by the Department and
reviewed Nevada Revised Statutes. As part of our field work, we surveyed other
states concerning prison medical and prison industries operations. We
interviewed individuals from the Division of Human Resource Management
(DHRM) and the Nevada Gaming Control Board concerning personnel hiring
processes. Additionally, we reviewed publications issued by the National
Correctional Industries Association (NCIA), National Commission on Correctional
Health Care (NCCHC) and the American Bar Association to gain an
understanding of the challenges facing prison medical services and prison
industries in Nevada as well as other states. We concluded field work and
testing in August 2012.

3

Our audit focused on the following objectives:
if Can the Department enhance oversight of prison doctors?
if Can the Department expedite its hiring process?
if Can the Department enhance its Prison Industries program?

We performed our audit in accordance with the Standards for the Professional
Practice of Internal Auditing.
The Division of Internal Audits expresses appreciation to the Department's
management and staff for their cooperation and assistance throughout the audit.
We also express appreciation to the Governor's Office of Economic
Development, DHRM and the Nevada Gaming Control Board for their
cooperation and assistance.
Contributors to this report included:
Vita Ozoude, CPA, CMA, CGMA, MBA
Executive Branch Audit Manager
Jeff Landerfelt, MBA
Executive Branch Auditor
Lynnette Pagaling, CPA, MBA
Executive Branch Auditor

4

Department of Corrections
Response and Implementation Plan
We provided draft copies of this report to Department officials for their review and
comments.
The Department's comments have been considered in the
preparation of this report and are included in Appendix F. In its response, the
Department accepted each of the recommendations we made. Appendix G
includes the Department's timetable to implement our recommendations.
NRS 353A.090 specifies within six months after the Executive Branch Audit
Committee releases the final audit report, the Administrator of the Division of
Internal Audits shall evaluate the steps the Department has taken to implement
the recommendations and shall determine whether the steps are achieving the
desired results. The Administrator shall report the six month follow-up results to
the Committee and Department officials.
The following report contains our findings, conclusions, and recommendations.

5

Can the Department Enhance
Oversight of Prison Doctors?
The Department can enhance oversight of prison doctors by monitoring doctor
attendance. We estimate this could benefit the State by up to $1.9 million
annually.
The Department provides direct medical services at all correctional facilities and
manages the inmate population to ensure necessary medical services are
provided. Medical services address medical conditions of inmates, as well as,
dental and mental health care. Primary health care is provided at all facilities.
With the exception of the Northern Nevada Correctional Center, which has a
Regional Medical Facility (RMF), all the other facilities have infirmaries. The
Medical Division has 23 full-time doctors and 8 part-time doctors. See Exhibit III.

Exhibit III
Prison Doctors 1
Description
Psychiatrists
Physicians
Dentists
Total

Full Time
Employees
5
12
6
23

Part Time
Employees
2
2

4
8

Psychiatrists - The psychiatrists primarily provide mental health care including
medication management.
Physicians - The physicians provide primary care to prison inmates. They
screen inmates during the intake process and provide early detection of
diseases.
Dentists - The dentists provide dental services to prison inmates such as
extractions and fillings based on medical necessity.

1

For the purposes of this report, the term "doctors" refers to psychiatrists, physicians, and dentists only.

6

Inmate Care
The Department indicated that every inmate is examined by doctors upon
entering the Nevada prison system during the intake process. The inmates are
tested for diseases such as HIV/AIDS, tuberculosis, sexually transmitted
diseases, and other chronic diseases as requested by the doctor. Chronic care
patients receive ongoing care through chronic care/specialty care clinics. In
addition, inmates may request medical care by completing a form known as a
"kite"2. Kites are collected daily throughout the facilities and must be reviewed
within 24 hours and triaged by a registered nurse. If it is determined based on
the triage that an inmate needs medical attention, he/she must be seen by a
doctor or other medical provider within 48 hours. As shown in Exhibit IV, the
Department tracks medical care requests as well as medical services provided to
the inmates on a monthly basis.

Exhibit IV
Prison Inmate Medical Statistics (FY 2012 Monthly Average)
Request for medical care (kites)
Clinic visits/services (inside)
Clinic visits/services (outside)
Hospital visits/services (outside)
Regional Medical Facility (RMF) hospital services
Prison infirmary admissions
Mental health unit admissions
Transportation to hospital via ambulance
Transportation to hospital via care flight

8,247
16,027
210
22
51
70
74
14
1

Routine medical cases are handled through the Department's infirmaries or at
the RMF located inside the Northern Nevada Correctional Center. If it's an
emergency, a correctional officer will call 911 for an ambulance to take the
inmate to a hospital.

Community Standard of Care
The Department represents they meet the "community standard of care" which is
the universally accepted standard for medical care within the prison environment.
Community standard of care is defined as the accepted practice of health care in
a given community. These standards require inmates to have access to care
that meets their serious medical, dental, and mental health needs.

2

A kite is a request for general services including non-emergency medical services.

7

The American Correctional Association sets standards for all correctional
components of the criminal justice system .
Conversely, the National
Commission on Correctional Health Care (NCCHC) sets standards specifically
for prison medical services. The NCCHC, established in 1983, is a recognized
leader in setting standards for medical services. Their standards have been
adopted by over 500 prisons, jails and juvenile facilities. These standards, for
the first time, established adequate levels of health care services for prison
inmates.
We reviewed the operating directives for medical care used by the Department's
Medical Division. Some of the directives were adopted from the 2008 Standards
for Health Care Services in Prisons published by the NCCHC. The NCCHC
standards address issues such as access to medical care, intake screening,
medical examinations, and the need for linkages between correctional health and
public health.
According to the NCCHC, "While the NCCHC standards are not clinical
performance standards per se, the expected outcome of compliance is provision
of health care that not only meets constitutional requirements but also conforms
with community standards. The NCCHC standards are based on the assumption
that correctional health care providers practice their clinical skills as they would in
any other health setting."3 Additionally, the American Bar Association recognizes
the NCCHC as an authoritative source for meeting community standards of care
for the treatment of prisoners.
We surveye,d eight states4 to determine the standards used by these states for
providing adequate medical care to prison inmates. Five of the states indicated
they follow the NCCHC standards while the other three follow the American
Correctional Association's standards.

Prison Doctor Oversight
To gain access into any of the Nevada correctional facilities, doctors must sign
an in/out log which is used to identify the doctor as well as the times he/she is in
the facility. We examined the Prison Medical Division's in/out logs for doctors
and determined that the doctors were working less than full days. We sampled
48 percent of the doctors working in the 7 correctional facilities during various
time periods in fiscal year 2012. Exhibit V summarizes the number of doctors
selected at each of the correctional facilities.

3

4

National Commission on Correctional Health Care, Resources & Links, "Spotlight on the Standards:
Clinical Performance Enhancement Made Clear." http://www.ncchc.org/resources/spotlighU18-2.html.
Accessed 20 September 2012.
Arkansas, Kentucky, Nebraska, New Hampshire, Oregon, Utah, Vermont, Wyoming

8

Exhibit V
Full-time and Part-time Doctors
Sampled by Facility
Correctional Facility
Ely State Prison

Doctors
1 Physician
1 Dentist

Florence McClure Women's
Correctional Center

1 Physician
1 Dentist
1 Psychiatrist

High Desert State Prison

1 Physician
1 Part-time Physician
1 Dentist
1 Part-time Dentist
1 Psychiatrist

Lovelock Correctional
Center

1 Physician
1 Psychiatrist5

Northern Nevada
Correctional Center

1 Physician
1 Dentist
1 Psychiatrist5

Southern Desert
Correctional Center
Warm Springs Correctional
Center

1 Psychiatrist
1 Psychiatrist5

We sampled 13 full-time doctors and 2 part-time doctors. Ninety-two percent of
the sampled full-time doctors were scheduled as working four 10-hour days per
week. The 2 part-time doctors sampled were scheduled as working two 10-hour
days per week. Based on our analysis, the full-time doctors worked on average
5.31 hours per day and the part-time doctors worked on average 5 hours per
day; however, their bi-weekly timesheets6 did not show any reduction in hours
worked. As a result, these full-time and part-time doctors were compensated for
a full day for each day worked. When determining the actual hours worked by
the doctors, we included their recorded leave in the calculation. We could not
track any hours worked by doctors outside the facilities (e.g., notes or taking
calls) to determine if this would have significantly increased their average hours
worked. The Department did not provide documentation to support hours worked

Based on our review of in/out logs, this doctor worked at three facilities. However, there is no indication
that he worked in more than one facility on any given day.
6 Source: Employee Paycheck Detail Report
5

9

outside the facilities. Exhibit VI summarizes our sample results for full-time and
part-time doctors.
Doctors are exempf employees and are not legally required to work a full 10
hours in any given day, however, for most other exempt positions in the State,
standard practice dictates that individuals provide something equivalent to a 40
hour workweek or more. Therefore, establishing a defined work schedule and
tracking doctors' attendance will help ensure that doctors' actual hours worked
are consistent with hours claimed.

Exhibit VI
Doctor Attendance Summary
Full-time Doctors' Hours
10.0

H

8.0

o

6.0

u
r

4 .0

s

2.0

0.0

DR DR DR DR DR DR DR DR DR DR DR DR DR
1

2

3

4

5

6

7

8

9

10

11

-

Average hours logged plus leave

=

Hours/day based on a 4 day (10-hr.) workweek

12

13

Part-time Doctors' Hours
10.0 c!======================================~

8.0
H

o

6 .0

u
r

4 .0

s

2.0

0.0

DR14

DR15

• Average hours logged plus leave
D

7

Hours/day based on a 2 day (10-hr.) workweek

According to the Fair Labor Standards Act, employees are either exempt or nonexempt. Exempt employees
are not entitled to overtime pay and their salaries may not be reduced for partial day absences.

10

Unsupported Payments
Based on our sample, 45 percent of the salaries paid to full-time doctors and 57
percent of the salaries paid to part-time doctors were not supported by
attendance logs. See Exhibits VII and VIII. Based on the Department's 23 fulltime doctors and 8 part-time doctors, we estimate the annualized unsupported
payments for full-time doctors and part-time doctors for fiscal year 2012 were
approximately $1.9 million 8 •
The Department should monitor doctor attendance to ensure doctors
the hours reflected on their bi-weekly timesheets. If the Department
doctors accountable for their attendance, other alternatives
considered, such as paying doctors for actual hours they are
privatizing the prison medical services.

are working
cannot hold
should be
present or

Exhibit VII
Salaries Paid to Full-Time Doctors
(annualized basis)

Supported Payments

o Unsupported Payments

8

See Appendix A.

11

Exhibit VIII
Salaries Paid to Part-Time Doctors
(annualized basis)

Supported Payments

o Unsupported Payments

Monitoring doctors' hours and establishing defined work schedules consistent
with the hours of operation within each facility should enhance oversight of prison
doctors and reduce future unsupported payments.

Recommendation
1. Monitor doctor attendance in facilities.

12

Can the Department Expedite
Its Hiring Process?
The Department can expedite its hiring process by using the State developed
Request to Fill (RTF) form or redesigning the in-house developed staffing
requisition form (Form 1069) to include items that are needed in completing the
computerized Nevada Applicant Processing & Placement System (NVAPPS)
process.

Department's Hiring Process
The State's Division of Human Resource Management (DHRM) entered into an
agreement with the Department where authority is delegated to the Department
to hire for specific positions without going through the DHRM. All hiring functions
for positions not specified in the delegated agreement (non-delegated) remain
with the DHRM.

Delegated Agreement
The State's DHRM has delegation agreements with several agencies because
these agencies are deemed unique in their operations and have more expertise
in recruiting for specific jobs within the agency, thereby facilitating the agency's
ability to fill positions on a timely basis. The specific positions stated in the
Department's delegated agreement are listed in Appendix C. All hiring functions
for positions not specifically included in the delegated agreement are the
responsibility of the State's DHRM. The Department sends all non-delegated
recruitment requests to the DHRM.

Initial Hiring Process
We reviewed the Department's hiring process to determine if there is a more
efficient way to hire staff. The scope of this review was limited to the initial hiring
process which involves creating a staffing requisition in NVAPPS. Based on our
review of hiring documentation and discussions with the Department and other
Nevada agencies9 , we determined that the Department's hiring process could be
improved.
The Department's internal process begins when the Requestor completes and
submits Form 1069 (see Appendix D) to the Department's Human Resources

9

DHRM and Nevada Gaming Control Board

13

Manager.
The Human Resources Manager then assigns a Department
Recruiter. An Administrative Assistant (M) logs the form and forwards it to the
assigned Recruiter.
The Recruiter contacts the Requestor for additional
information such as position description, selective criteria/justification, and
recruitment duration. The current Form 1069 does not have all of the information
necessary to create the staffing record in NVAPPS. See Exhibit IX for steps in
the initial hiring process.

Exhibit IX
Department of Corrections Initial Hiring Process Steps

Requestor

(1) Sends Form 1069
(NODe Staffing

Requisition) to
NoDe HR Mgr

----~

Nooe Hum an Resources M anager
(HR Mgr)

I
I

NODe HR Mg'

Reque,,, additional

assigns an NODe

Recruite r then

Nooe Recruiter

~2J Forwards 1069 to Recruiter+l

fon·,.,d, 1069 to

Recruiter after M
logs the assignment.

information from

Req ~estor, once
p,ov,ded. ma tes

staffing record on

Stat e HR (OHRM)

(6) State HR assigns

State Recruiter, who
creates Certified list
or begins building

recruit ment

NVAPPS

~

I

3) Req uests addlit allnformation from Requesto
4) Provides req ues d Informatio n t o NODe Recruite r

(5) Staffing Req
Approve d In NVAPPS

~

;

(6)NDOC Rr ecrulte r

generates list of
candidates or builds
recruitment

Yo.

position?

N

While the duration of the hiring process varies depending on circumstances such
as list availability, location, and job position , we noted delays in the hiring
process that could be attributable to required information not being provided
initially. The Department's hiring process could be expedited by collecting
complete information from the Requestor at the time the staffing requisition is
submitted to the Department's Human Resources Manager using the RTF form

14

(see Appendix E). This form contains all the information needed to complete
NVAPPS, thereby, eliminating the need to re-contact the Requestor for additional
information. Alternatively, the Department could modify the current Form 1069 to
include the additional information needed to complete the NVAPPS staffing
requisition.

Recommendation
2. Consider using the State developed Request to Fill form when collecting
information needed to complete the Nevada Applicant Processing &
Placement System (NVAPPS) staffing requisition or revise Form 1069 to
include additional information.

15

Can the Department Enhance its
Prison Industries Program?
The Department can enhance its prison industries program by developing shortterm and long-term strategic plans and working with partners in the business
community and public institutions10 to increase program product sales and
services.
Prison Industries is a self-supporting industrial program within the Nevada
Department of Corrections. The program provides meaningful work and job
training for prison inmates. Prison inmates acquire marketable skills in areas
such as printing/bindery, garment sewing, and auto restoration/repair.
We interviewed Prison Industries staff, National Correctional Industries
Association (NCIA) staff and reviewed statistical information provided by the
NCIA. We randomly selected a sample11 of 15 other states with prison inmate
populations ranging from 2,500 to 25,000. Based on our sample, Nevada ranked
14th in total sales, and 15th in terms of percent of inmates working. See Exhibit X.

10
11

State and local governmental agencies and schools
Sample selected from 2012 NCIA Directory

16

Exhibit X
Prison Industry Sales
State a
1 Colorado
2 Minnesota
3 Indiana
4 Oregon
5 Iowa
6 Utah
7 Massachussetts
8 Kansas
9 Kentucky
10 West Virginia
11 Idaho
12 Connecticut
13 Arkansas
14 Nevada
15 Delaware
16 New Hampshire

Sales
66,493,765
38,012,922
36,200,000
24,200,000
20,792,652
20,180,764
10,453,525
10,090,179
9,700,000
7,762,318
7,512,588
6,711,974
6,246,000
5,641 ,000
2,068,953
2,000,000

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

Inmate
Population
21,989
9,338
24,106
13,983
8,782
6,797
11,276
9,186
13,111
6,500
7,578
18,538
13,903
12,748
5,543
2,500

Ranking of Percent of Inmates Working

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
a

State a
Minnesota
New Hampshire
Kansas
Oregon
Indiana
Colorado
Kentucky
Utah
Iowa
Delaware
Massachussetts
Idaho
Arkansas
West Virginia
Nevada
Connecticut

Inmate
Population
9,338
2,500
9,186
13,983
24,106
21,989
13,111
6,797
8,782
5,543
11,276
7,578
13,903
6,500
12,748
18,538

Number of
Inmates
working
1,337
299
1,049
1,157
1,942
1,544
917
442
514
279
503
314
533
238
464
407

Percent of
Inmates
working
14.3%
12.0%
11.4%
8.3%
8.1%
7.0%
7.0%
6.5%
5.9%
5.0%
4.5%
4 .1%
3.8%
3.7%
3.6%
2.2%

Information obtained from 2011 NCIA data included in the 2012 NCIA Directory

17

Develop Short-Term and Long-Term Strategic Plans

Currently, Prison Industries does not have short-term or long-term strategic plans
and should develop such plans. Based on our sample of other states, 73 percent
of the states have either short-term or long-term plans and 53 percent have both
plans. See Exhibit XI. Some of the benefits of strategic planning include, but are
not limited to the following:
•
•
•

Establishing and communicating realistic goals and objectives to
accomplish within a defined time frame.
Ensuring the most effective use of resources by focusing on the key
priorities, and
Providing a base from which progress can be measured and
establishing a mechanism for informed change when needed.

Exhibit XI
Sample States with Short/Long-term Strategic Plans
State

a

1 Colorado
2 Minnesota
3 Indiana
4 Oregon
5 Iowa
6 Utah
7 Massachussetts
8 Kansas
9 Kentucky
10 West Virginia
11 Idaho
12 Connecticut
13 Arkansas
14 Nevada
15 Delaware
16 New Hampshire
a

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

Sales
66,493,765
38,012,922
36,200,000
24,200,000
20,792,652
20,180,764
10,453,525
10,090,179
9,700,000
7,762,318
7,512,588
6,711,974
6,246,000
5,641,000
2,068,953
2,000,000

Short-Term
Plan

Y
Y
Y

Long-Term
Plan
Y
N
Y

Y
Y
N
N
N
N

N
N
N
Y
N

Y
Y
Y

Y
Y

Y
N

Y

Y
Y

Y

Information obtained from 2011 NCIAdata included in the 2012 NCIADirectory

18

Y

N
N

Y

Public Sector Sales
Nevada Prison Industry sales to public sector institutions such as public schools,
state agencies and local governments lag behind all of the other states in our
sample.
We reviewed the 2012 NCIA Directory which contains other states' public sector
sales and selected ten states without "mandatory source"12 provisions. While
Nevada's prison industry sales to public sector institutions were 13 percent in
2011, public sector sales for the other states averaged 70.6 percent. See Exhibit
XII.

Exhibit XII
Ranking of Public Sector Sales
Percent Sales to Public Sector Institutions

State a
Arkansas
Wisconsin
Kentucky
Delaware
Minnesota
Tennessee
Montana
Oregon
South Carolina
Idaho
Nevada

Total Sales
$ 6,246,000
$ 34,166,433
$ 9,700,000
$ 2,068,953
$ 38,012,922
$ 34,567,800
$ 14,607,366
$ 24,200,000
$ 21,363,000
$ 7,512,588
$ 5,641,000

State
DOC
37.0%
36.0%
23.0%
40.0%
36.0%
42.0%
45.0%
16.4%
32.0%
3.0%
7.0%

Other
State
Agencies
29.0%
33.0%
50.0%
28.0%
29 .0%
31 .0%
21.0%
35.5%
5.0%
43.0%
5.0%

Local
Gov't
3.0%
1.0%
10.0%
10.0%
1.0%
2 . 1%
4.0%
1.4%
0.0%
4.0%
1.0%

Education
27.0%
25.0%
5.0%
8.0%
12.0%
0.1%
0.0%
8.8%
20.0%
6 .0%
NR

Total
Public
Sector
96.0%
95.0%
88.0%
86.0%
78.0%
75.2%
70.0%
62 .1%
57.0%
56.0%
13.0%

Private
Sector
4.0%
5.0%
12.0%
14.0%
22.0%
24.8%
30.0%
37.9%
43 .0%
44.0%
87.0%

Average (excludes Nevada)
70.6%
Information obtained from 2011 NCIA data included in the 2012 NCIA Directory
NR - Not Reported.

a

Our analysis also looked at the public sector sales per capita and sales per
public employee. As illustrated in Exhibit XIII , Nevada's sales per capita and per
public employee is lower than all the states in our sample. Based on this
analysis, we believe opportunities exist for Nevada's Prison Industries in the
public sector. More efforts should be devoted to explore these opportunities by
working with schools, public sector agencies and local governments.
12Mandatory Source -

requires state agencies to purchase products from Prison Industries, if pricing,
quality, and availability are comparable.

19

Exhibit XIII
Public Sector Sales per Capita and Public Employee

State a
Wisconsin
Minnesota
Tennesse
Oregon
Idaho
Montana
South Carolina
Kentucky
Arkansas
Delaware
Nevada

Public Sector
Sales

$
$
$
$
$
$
$
$
$
$
$

32,458,111
29,650,079
25,994,986
15,028,200
4,207,049
3,667,592 d
12,176,910
8,536,000
5,996,160
1,779,300
733,330

Total Number
of Public
Total
Population b EmployeesC

5,686,986
5,303,925
6,346,105
3,831 ,074
1,567,582
989,415
4,625,364
4,339,367
2,915,918
897,934
2,700,551

70,891
79,672
86,215
65,542
21,773
20,795
77,342
81,493
62,562
26,215
28,121

Sales
per
Capita

$
$
$
$
$
$
$
$
$
$
$

5.71
5.59
4.10
3.92
2.68
3.71
2.63
1.97
2.06
1.98
0.27

Sales per
Public
Employee

$
$
$
$
$
$
$
$
$
$
$

457.86
372.15
301 .51
229.29
193.22
176.37
157.44
104.75
95.84
67.87
26.08

Source:
2011 NCIA Data
b2010 U.S. Census Data (2011 not available)

a

C

d

2011 Annual Survey of Public Employment and Payroll
Public sector sales exclude DOC sales because state has a mandatory source provision
with their Department of Corrections .

Developing short and long-term strategic plans will help Prison Industries identify
opportunities, increase public and private sector sales, and provide more jobs to
inmates.

Pursue Opportunities in the Business Community
We contacted the Governor's Office of Economic Development (GO ED) and
learned that some of our rural manufacturers are having problems hiring and
retaining employees in these communities. A prison industry official in one of the
surveyed states 13 represented that they are currently pursuing private sector
opportunities in their rural areas due to labor shortages. Additionally, the official
indicated that they coordinate with state and local economic development offices
to enhance job opportunities for inmates.

13

Kansas

20

Based on our survey and discussions with GOED, we believe opportunities exist
to use Prison Industries' labor, space, and equipment to create jobs for inmates
as well as provide a needed labor force within our rural communities.

Recommendations
3. Develop short and long-term strategic plans to address issues such as
markets targeted and public and private sector sales.
4. Coordinate with the Governor's Office of Economic Development to
pursue opportunities in the business community.

21

Appendix A
Summary of Doctors' Payments

Full-Time Doctors
Total Payrrents
Supported Payrrents
Unsupported Payrrents (Difference)

Part-Time Doctors
Total Paymants
Supported Payrrents
Unsupported Payrrents (Difference)

$
$
$

$
$
$

Sample c
842,924
431,302
411,622

Sample
Annualized
Basis
$ 1,853,539
$ 1,010,255
$
843,284

Projected to
Population
(annualized)'
3,279,338
$
1,787,374
$
1,491,964
$

Percent of
Total
Payments

Sample c
38,943
16,565
22,378

Sample
Annualized
Basis
168,755
$
$
71,783
96,972
$

Projected to
Population
(annuaJized)b
675,020
$
287,132
$
387,888
$

Percent of
Total
Payments

Estimated Savings
Full-Tirre Doctors - Unsupported Payrrents
Part-Tirre Doctors - Unsupported Payrrents
Total Estimated Savings
..
* $1.9 milion (rounded)
Summary Table

$
$
$

Sample
Full-tima Doctors
Part-tima Doctors
Total Doctors

a

=

13
2
15

Population
23
8
31

55%
45%

43%
57%

1,491,964
387,888
1,879,852

Percent Sampled
57%
25%
48%

=

Projected Total Payrrents [$1,853,539 (Annualized)/13 (sample # of FT doctors)] x 23 (total FT doctors) $3,279,338
Projected Supported Payrrents [$1,010,255 (Annualized)/13 (sample # of FT doctors)] x 23 (total FT doctors) $1,787,374
Projected Unsupported Payrrents [$843,284 (Annualized)/13 (safTl)le # of FT doctors)] x 23 (total FT doctors) $1,491,964

=

=
=

=

b Projected Total Payrrents = [$168,755 (Annualized)/2 (sample # of PT doctors)] x 8 (total PT doctors) = $675,020
Projected Supported Payrrents [$71,783 (Annualized)/2 (sample # of PT doctors)] x 8 (total PT doctors) $287,132
Projected Unsupported Payrrents [$96,972 (Annualized)/2 (sample # of PT doctors)] x 8 (total PT doctors) $387,888

=

c Number

=

=

of bi-weekly pay periods sampled varied per doctor. See Appendix B for additional details.

22

=

Total Hrs
Claimed on
Bi-weekly
timesheets

Total Hrs
Logged
+
Leave
(supported
Hrs)

DR 1

472

382

90

6 $ 72.66 $

27,756

DR2

464

273

191

6 $ 64.65 $

17,649 $

12,348 $

76,481

$

53,509

DR3

1,032

602

430

13 $ 72.66 $

43,741

31,244 $

87,483 $

62,488

Doctor

Number
of
Bi-weekly
Difference
Pay
Avg.
(unsupported Periods
Hourly
Hrs)a
Examined Pay Rate*

Supported
Payments b

Supported Unsupported
Payments
Payments
Unsupported (annualized (annualized
basis) d
basis)e
Payments c
$

$

6,539

$ 120,277 $

28,337

»

::J

-ru

DR4

1,016

612

404

13 $ 64.65 $

39,566 $

26,119

$

79,132 $

52,237

"<

DR5

1,016

490

526

13 $ 82.60 $

40,474 $

43,448

$

80,948 $

86,895

DR6

480

293

187

6 $ 64.95 $

19,030 $

12,146 $

82,465 $

52,631

(ii'
0

47,453

49,531

DR7

1,176

442

734

15 $ 64.65 $

28,575

$

$

$

82,252

M

-I'll

0
0

(')

$

57,536

.-10

81,967 $

30,397 $

101,483

~

48,512 $

27,068

$

97,024 $

54,136

39,318 $

37,335 $

85,188 $

80,893

:J:
0

10 $ 72.66 $

29,209

27,175

$

75,944 $

70,655

430

12 $ 64.65 $

32,196 $

27,800 $

69,757 $

60,232

131

98

6 $ 72.66 $

9,518

$

41,247 $

30,856

345

109

236

6 $ 64.65 $

7,047 $

15,257 $

30,536 $

66,115

"C
£l)
"<

Total

12,614

6,362

6,252

166 $ 69.93 $

447,867 $

434,000 $1,082,038 $

940,255

CD

Full-Time Total

12,040

6,122

5,918

$

431,302

$

411,622

$1,010,255 $

843,284

Part-Time Total

574

240

334

$

16,565 $

22,378

71,783 $

96,972

DR8

1,104

627

477

14 $ 64.95 $

40,724

$

30,981

DR9

1,640

378

1,262

21

24,551

$

DR10

1,008

647

361

13 $ 74.98 $

DR 11

928

476

452

12

DR12

776

402

374

DR13

928

498

DR14

229

DR 15

$ 64.95 $

$ 82.60 $

$

$

7,121

$

$

75,630

a Unsupported Hrs =Total Hrs Claimed - (Total Hrs
Logged + Leave)

d Supported Payments (annualized) = Supported Payments/(rllumber of bi-',\'eekly pay
periods e~amined/28 pay periods) = (e.g. $27,758/0.231)

b Supported Payments =Supported Hrs f. Avg. Hourly

e Unsupported Payments (annualized) =Unsupported Payments/(Mumber of bi-\\'eekly
pay periods e~amined/28 pay periods) = (e.g. $8,533/0.231)

Rate
C

Unsupported Payments =Unsupported Hrs f. Avg.
Hourly Pay Rate

* Average hourly pay rate was calculated from each doctor's bi-'.1eekly timesheets.

0

~

I:
~

M

ru
::J
c..

3

::J

.-10

M

»

"C
"C
CD

::J

0..

>C'
00

Appendix C
Department's Delegated Agreement

Department of Corrections Classes for which Recruitment and Functions
are Delegated
3.108
3.107
3.207
6.106
7.333
7.332
7.818
7.819
7.820
7.821
9.422
9.431
9.418
9.424
9.462
10.124
10.126
10.132
10.143
10.261
10.263
10.264
10.316
10.318
10.319
10.358
10.360
10.365
10.369
10.370
10.617
10.616
12.460
12.501
12.553
12.556
12.559
12.565
12.571
12.583
12.510
12.517
13.310
13.311
13.313
13.314

Food Service Manager 2
Food Service Manager 3
Food Service Cook/Sup 3
Chief Engineer Pit Ops
Prison Industries Supervisor 1
Prison Industries Supervisor 2
Retail Storekeeper 4
Retail Storekeeper 3
Retail Storekeeper 2
Retail Storekeeper 1
Heat Plant Specialist 4
Locksmith 2
Locksmith 1
Carpenter 2
Plumber 2
Psychologist 4
Psychologist 3
Psvchologist 2
Psychol~gist 1
Dental Prosthetics Tech
Dental Asst 2
Dental Asst 1
Correctional Nurse 3
Correctional Nurse 2
Correctional Nurse 1
Nurse 1
Licensed Practical Nurse 2
Licensed Practical Nurse 1
Certified Nursing Assistant
Nursinq Assistant Trainee
Athletic & Rec Spec 2
Athletic & Rec Spec 1
Correctional Substance Abuse Program Dir.
Warden
Associate Warden
Correctional Casework Specialist 3
Correctional Casework Specialist 2
Correctional Casework Specialist 1
Correctional Casework Specialist Trainee
Inst. Chaplain
Correctional Manager
Correctional Assistant
Lieutenant
Sergeant
Correctional Officer
Correctional Officer Trainee

24

Appendix 0
Staffing Req uisition Form (Form 1069)

Nevada Department of COITections
Human Resources
Staffing Requisition
Vacancy Iofommtion (to be complBfed by tllo faciliJy wlzore vacallCY e::dsts)
lob Title:'--_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Budget Account:._ _ _ _ _ _ _ _ _ _ PositionNumber: _ _ _ _ _ _ __ _

Pemmresponsi'ble for filling vacancy: _ _ __ _ _ _ _ _ _ _ _ _ _ _ __
Telephone Nmnbe:r: _ _ __ _ _ _ _--'putyLocation:_ _ _ _ _ _ _ _ __
DalB position becamelwill become vacant

Who vacated the position: _ _ _ __

Reason for vacancy: 0 Retirement 0 PromotioniDemotion 0 Transfer 0 Other
How would yon like to fill this vacancy?

o New Recruitment
o Use existing list (if available)
o Don't know, please contact me.
o Underfill (contact HR. to see ifthis is an option)

CmmrumB: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ___

Signature

Date

HUMAN RESOURCES USE ONLY:
Date Received: _ _ _ __ _ _ _ __

LOGfJ: _ _ _ __

Assignedto: -;--_ _ _ __ _ __ __
Date assigned:,.-.,...---;r-_ _ _ _ _ __ _

Existing List (check 0lIe)
o Open Competitive
o DeptIPromo
o Othe:r:

NV~SS~~#

____________

Recrrutment# _ _ _ __ _ __ _ __

RECRUDERNOTES: _ __________________________________________

STAFFING REQUISl110l\W MUSTBEPLACED IN THE HECIlUlIlUENT FILE!!!
DOC 1059 (8112)

25

Appendix E
Request to Fill Form

F "lUInWrmito'''t ''hI'gmPItnM
9:l1I!~ ma'llellkw

Jo& ReIBIn£Ia"Oll!W

(lllI.UII!I:Ied caIIIIdate)

RW upaal:ed I1611JUI2

26

Appendix F
Department of Corrections
Response and Implementation Plan ·

---

PDa-cc-.m....._
BIIlAlJIWIDO'QL

c.......__
c.-n.r1l&III'O
c:.umIIIIIDI
COla'll:
IIDIIII JIILUI&
~<f-

.

;r-i~;:-:~

9~ .ft\ ~V~
~iI~ '\)

Stfi\.'rJ3 OF NtVA04

.ll~NT OF COIlRE;~

_a..-..A<tnI.........
, _. .

_

-.toJ\,:i

01II _____clly,RV_
. Ra:
C771ija7~

~

a.daD_*,'"
_W._~la_NVDlU

1'IImE(IIIQ _ _ . Ra:DtI2I.--s

Nove~er14,2012

Mr. Steven B. Weinberger, Admlniflttator
Division of Internal Audits
Oepartment of Adminisfration
209 East Musser Sfreet
Carnon City, NV 89701

RE: Response to Audit, Nevada Department of Corrections
November, 2012

Dear Mr. Weinberger:
The Nevada Department of Corrections (NOOC) has reviewed the frndlngs of your recent
audit that wan presented to Deputy Director Deborah Reed and me on October 30, 2012 I
am pleased to forward the f olrOllJing responses to your recommendations. In each c311e, I
have re-stated the aucfd finding, provided II simple respoooe to the reoommendaUon, Ilnd
included a brief discussion of the Departmenrn response for your conmderalion. I wish to
express my appreciation to the audit team for providing our agency with a valuable service
(0 help Improve our operations. Your team conducted the audit in II profess.!onaJ manner
and the Information provided will help us improve our operations.
RECOMMENDAnON#1:
Monitor doctor attendance in facUities.
RESPONSE: Agree
PROPOSED fMPLEMENTAnON: Completed September 2, 2012
DJSCUSSJON:

11le Department inntituled a medical pl1llctitioner attendance tracking .progr.un en September
2, 2012 Medical praclitionero at each Institution have their hoUIS tracked by the Director of
NursIng Services. The Director of Nuroing Services is the Health Services Adminisfralor f or
(heir respective institutions. The medical pmctItioner attendance reports ;lire completed
weekly llnd submitted to the Oeputy Director of Operations for review. All Department
medical practitlonero have been made aware of the new lraddng program and prooooo.

27

tn addmon, the Work Performance Standards for all practitioners have been updated to
reftecl expectations reganfmg their respective work schedule. The revised Work
Performance standards have been reviewed with the practitionem.
The NDOC would like to highlight the comment made by the audit team that a[)()ctors are
exempt employees and are not legally required to work a ful/10 hours in MY given day..."
We believe that we are in futl compliance with the auult ffnding at this time and wam to urge
caution in any further findings in this area until legal counsel is sought.
Our research into NRS, federnl law, and NAC confrnn the auditor's statement is absolutely
correct. Their statemerrt is supported by NRS 284.148 when discuGSing staff in the nonclassified and clasBffied services which are exempt pursuant to fedem! FaIr labor Standards
Act and NAC 284.581 "wherein the federal Fair Labor Standards Act of 1936, as amended,
and 29 C.F.R. Part 541 is adopted by reference.D Additionally, NRS 281.1275 "Reduction in
salaJYof certain public officem and employees for part.day absence from work prohibited;
accounting for part-day absence; exceptionD must be noted when stating that (he
uannuafized unsupported payments for full-time doctol'S and parl-lime doctors for fiscal year
2012 were approximately $1.9 miUion." Nevada statute does not require the doctom, as
non-dassified state employees, to report anything less than 8 hours of non-attendance.
However, t o request the doctors to account for theIr attendance and/or only pay doctors for
actual houm worked, or privatizing the medical services within the NDOC could subject the
state fo severe 1HIgation and potential loss greater than the $1 .9 million in unsupported
payroU expenditures.

RECOMMENDATION #2:
COnllider using the state developed Request to Fill form when collecting infommon needed
to complete the Nevada ApplEcant Processing and Placement System (NVAPPS) or rew e
Form 1069 to include adOrtional information.
RESPONSE: Agree
PROPOSED IMPLEM ENTATION: March 1, 2013
DI SCUSSION:

The auditors determination that the Departmenf3 hiring process could be improved is
accepted 'b ecause we are in the proCe5S of ooseooing our Human Resources division's
processes d ue to ;) nevi and innovative administrator. Processes and internal policies aTe
being tented, ehanged, and adoptedlrejected based on flest practices.
Appendix E Is required from state Agencies that do not have imemaJ Human Resource
flervices. It is required 'by state Human Re<'.,ourre Division because their recruiters/analysts
do not operate within the agencies they selVe.
Therefore, t he Departmem of
Administration's Human Resource staff must rely on the agencies to provide the required
infonnation in order to activate the recruiting process for t heir customers.
Appendix D, the NOOe's "Stalfmg ReqUisition Form" (DOC 1069) is easier to expedite,
allowing the Appointing Authority to speed up the proces3 efficienUy. Reqtdring the
Appointing Authorffy to complete all the information i3 not necessary when the NDoe han its
own Human Resources services in possession of 1m position histories. HO\II'eYef, the

28

"Selective Criteria" section would be beneficial
Divillicn of Human Reoources.

to both the Appointing Authority and the

The NDOC Form 1069, Staffing Requisition Foml, I3lreing reviewed for modification.

RECOMMENDATION #3:
Develop short and long-term strategic plans to address issues such as markets targeted and
public and private sector sales.
RESPONSE: Agree
PROPOSED IMPLEMENTATION: March 1,2013
DISCUSSION:
Although we agree with your over-all findings we woukllike to offer addltional data whi ch we
con5ider is important to the analyBis of the success of Prison IndU5bies in the State of
Nevada.
If we review the entire nalion of 50 states, Nevada is
• 19th out of 50 for inmate population (12.748 total Nevada inmate population)
• 11th out of 50 for Prison Industries' sales (17 states with sales below $8 mimon.)
• li"outofSO for number of inmates WOJked(3.7%.)

"my

There are a number of reasons
sales differ so much across stabm; Prison Industries
• print a majority of ~tate printing needs
• have different industries GUch as sign manufaduring for Department of
Transportation
• have their Depmtment of Corrections' purchases made from Prison Indootries
(mandatoJY purcha5ing k orn Prison ,I ndustries)
• have larger Inmafe populations, and
• most Department of Corrections mandate their inmates wear inmate uniforms
manufactured by Prison Industries
We are offering the fol!owing strategles to increru:e sales and inmates Yrorked:
Develop short term slTategies that
• for fiscal year 2012 we h ave improved our sates to pre-reCeMIDn (2007 - 2(108)
levels
• Continue to walk with and participate with the Las. Vegas Chamber of Commerce
aclivifies to promote Prison Industries

RECOMMENDAlION #4:
Coordinate with the Governors Office of Economic Development topurnue opportunities in
the bU5iness community.
RESPONSE: Agree
DISCUSSION:

29

We are in the process of developing long term afrategies to increase sales and numher of
inmates working by contacting the State Economic Develop Councils in rural and
metropolitan areas and working with private entities to work inmates. This action win be an
on-going function within Priaon Industries.
Please remember that it is important not to rely on sales to the public sector markets. Prison
Industries has a mandate not (0 compete with the pubfic aector job market In addition, we
attempt to diversify our roles base (0 reduce the impact of anyone maJket such 85 we had
experienced in the NeVada public sector as 0 result of the recession.

Thank you again for the service you and your team provided the Nevada Department of
Corrections 3S a result of this audit
We agree with your recommendation and WIl l
implement them as 0000 as p055ible. If you wIsh to discuss any of our responoos, please
let me know.
SincerelY,

James G. Cox, Director
Nevada Department of C()rreclions

co:
co:
co:
co:
co:
co:
co:
co:

Deborah L Reed, Oepuly Oireclorof support Senlires, Nevada Deparlment ofGolreclions
E. K McDaniel, Depuly Oirectorof Operations, Nevada Department of Corrections.
Dr. Robert B<mnister. Di'eclor of Medical OpeJatioos, Nevada Department ofConedioos
Brian Connelt.llepIrty D:redDT of Prison Indusfries. Nevada DepaIfment of Cmredicns
Belly Farris. Chief of Rscal Services. Nevada Department of Correclions
Chuck Schanii1, P8edfcai Admilislrator. Nevada Department of Corrections
ShaJleI Gabriel, HIITT1i5I ResDUrces Adminlsbatclr. Nevada Deparlrnent of COm!Ctioos
Diane DastJI. ChDa Fis.caI Officer of Prison 1ndusIries, Nevada Deparfment of Com!cbions

30

Appendix G
Timetable for Implementing
Audit Recommendations
In consultation with the Department, the Division of Internal Audits categorized
the five recommendations contained within this report as having a period of less
than six months to implement. The Department should begin taking steps to
implement all recommendations as soon as possible. The Department's target
completion dates are incorporated from Appendix F.

Recommendations with an anticipated
implementation period of less than six months.

Recommendations

Time Frame

1. Monitor doctor attendance in facilities. (page 12)

Sep 2012

2. Consider using the State developed Request to Fill form
when collecting information needed to complete the Nevada
Applicant Processing & Placement System (NVAPPS)
staffing requisition or revise Form 1069 to include additional
information. (page 15)

Mar 2013

3. Develop short and long-term strategic plans to address
issues such as markets targeted and public and private
sector sales. (page 21)

Mar 2013

4. Coordinate with the Governor's Office of Economic
Development to pursue opportunities in the business
community. (page 21)

Mar 2013

The Division of Internal Audits shall evaluate the action taken by the Department
of Corrections concerning report recommendations within six months from the
issuance of this report. The Division of Internal Audits must report the results of
its evaluation to the Committee and the Department.
31