Final Overtime Audit Report 081304

Internal Auditor’s Office P.O. Box 3366 West Palm Beach, Florida 33402 Telephone: 561/659-8084 FAX: 561/659-8066 “The Capital City of the Palm Beaches” TO: Lois J. Frankel, Mayor FROM: Imogene Isaacs, CIA, CGFM, Internal Auditor DATE: August 20, 2004 SUBJECT: REPORT NO. 2004-02 AUDIT OF OVERTIME INTRODUCTION Our 2003/04 Audit Plan includes an audit of payroll. Because of concerns regarding the use of overtime Citywide, we completed this Audit of Overtime in lieu of the overall audit of payroll. An audit of payroll will be scheduled for next fiscal year. The objectives of this audit were to determine that: • overtime was authorized and necessary; • time worked was properly recorded and entered into the Oracle Time Management system and correctly paid; • overtime compensation and compensatory time were awarded consistent with the Federal Fair Labor Standards Act, Florida Statutes, City Code, departmental rules and regulations, and bargaining unit agreements; and • adequate procedures were in place and working to reasonably assure that overtime was controlled. Additionally, we identified: • factors contributing to rising overtime costs and related risks, and • potential strategies to reduce overtime costs and mitigate risks. 1Since this audit concentrated solely on overtime paid, it did not address the potential of employees not being paid for additional time worked. CONCLUSION AND ...