Friday, March 22, 2013

ODJFS performance audit identifies nearly $17 million in yearly savings

As part of a mandate in state law (Ohio Revised Code 117.46), the Ohio Auditor is required to do a performance audit of four state agencies each biennium. Their performance audits have identified millions in savings for local municipalities, school districts and other state departments.

Yesterday Dave Yost's office released a preliminary audit of the Ohio Department of Job and Family Services which identifies a potential of $8-18.5 million in yearly savings by reducing the supervisor-to-staff ratio within the department.

“More people should be doing the work instead of bossing the work,” Yost said in a press release. “I give credit to Director Colbert, who previously improved his supervisory ratios. I’m confident he will move quickly on these recommendations.”

ODJFS has a goal of one supervisor to seven staff and meeting that goal would save $2.76. million each year. They are currently at a ratio of 1:6.737.

But the performance audit says the ratio should be between 1:8 and 1:10, which is consistent with peer states and best practices.

"Reduction of an additional 84 to 195 FTE (full-time equivalent) supervisory positions through attrition, reassignment or reduction in force will lead to a savings range of up to $8M to $18.5M annually in payroll costs."

The auditor issued the interim report in order to assist the agency with immediate actions that should not wait until the final report was issued. This interim report was limited to the organizational structure at ODJFS, the Supplemental Nutrition Assistance Program (SNAP) and the Medicaid provider enrollment process.

A prior interim report that focused on the Unemployment Compensation Review Commission found that "using appropriate state job classifications and increasing efficiency" would save another $1 million yearly.

The full recommendations from the organizational review, along with the dollar amounts of savings are available here.

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