Salt Lake County leaders scrambled Wednesday to shape up the county's personnel division after it came under fire this week for mismanagement and unethical behavior.

And the futures of two personnel managers cited in an audit released Tuesday — director Felix McGowan and compensation manager Roy Arrigo — are being weighed by the mayor's office.

In a memo sent to personnel managers Wednesday, administrative services director April Townsend instructed the division to create new conflict-of-interest guidelines by the end of the week.

"I realize that the recent criticism is difficult, particularly when it puts into question the integrity of the entire division," said Townsend, who oversees personnel as part of the umbrella of administrative services. "However, addressing the concerns identified is part of the process we can use to maintain our credibility and establish protocols that will be followed consistently."

That swift move is in response to Tuesday's audit that cited Arrigo for using his position to get his wife hired as an elections specialist and then bumping up her salary just weeks after she was hired.

The audit also calls out McGowan for not responding with immediate action to Arrigo's bad judgment and for not having any standard operating procedures for such situations within the division.

One of those lacking procedures was a specifically outlined regulation that managers, analysts and specialist must recuse themselves from hiring matters when family members are involved. Townsend now says she wants that rule in writing and in practice by Friday.

In addition to the recusal rule, Townsend is requiring an updated version of all standard operating procedures for the division by Sept. 16.

"The credibility of this organization and the merit system is crucial; therefore, it is contingent upon all of us to immediately address the concerns that have been expressed and identify other areas where procedures need to be formalized," Townsend wrote in the memo.

As for McGowan and Arrigo, Chief Administrative Officer Doug Willmore said a decision on whether the employees will be disciplined or even terminated will be coming shortly. McGowan returns from vacation today, and Arrigo was unavailable for comment.

McGowan has already been under investigation for his role in abuses of the county's tuition reimbursement program and for allegations of time-card fraud. Arrigo has also been cited before for suspect hiring practices in an internal investigation commissioned by the county earlier this year.

Auditor Sean Thomas said he was concerned by McGowan's lack of initiative to discipline Arrigo and for not implementing clear conflict-of-interest regulations within the division. McGowan did issue a warning to Arrigo nearly a year after Arrigo's wife was hired, but Thomas said it's not the first time questionable hiring practices had been allowed under McGowan's watch.

"I don't think we would go as far to recommend a change in command, but whoever is in command over there is charged with creating standard operating procedures and creating guidelines," Thomas said.

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