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Office of Inspector General
City of New Orleans
New Orleans Police Department Payroll Performance Audit
AR13PAU003
E.R. Quatrevaux Inspector General
Issued August 6, 2014
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NOPDPayrollPerformanceAuditAR13PAU003
ExecutiveSummary.............................................................................................................3I.
Objectives,ScopeandMethodology..................................................................................4II.
GeneralNOPDPayrollFindings...........................................................................................6
Finding#1:
SeventeenNOPDofficersworkedmorethan16hoursand35minutesaday.
Finding#2:
FourteenNOPDofficersworkedmorethan32hoursofovertimeinaweek.
Finding#3:
ThreeNOPDofficersworkedmorethan24hoursofovertimewithoutappropriateapproval.
Finding#4: TwentytwoNOPDofficers testeddidnotapprove their time
in theBeatBook.
Finding#5:
FourteenNOPDofficersBeatBookswerenotavailableforaudit.III.
NOPDPayrollFindingsResultingFromPaidDetails..10
Finding#6: NOPD officers failed to enter paid details into the
paid detaildatabase.
Finding#7: ThreeNOPD officersworked a total of four paid
detailswhile alsoworkingtheirtourofduty.
Finding#8: Twelve NOPD officers worked 50 paid details without a
breakbetweenthetourofdutyandthepaiddetail.
Finding#9:
NOPDofficersworkedpaiddetailswithouttheknowledgeorapprovaloftheirsupervisors.
IV. Observations...13
Observation#1: NOPDofficerswereable toworkup
to106hoursand55minutesaweek.
Observation#2:
OneNOPDofficersplithisworkshiftseighttimestoperformatraffic
escortdetail.V. GlossaryofTerms.14VI.
OfficialNOPDComments.................................................................................................16
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EXECUTIVE SUMMARY The Office of Inspector General conducted an
audit of the NOPDs payrolls occurring
fromDecember30,2012throughApril6,2013.Theobjectiveoftheauditwastotesttheoperatingeffectiveness
of payroll, overtime, and paid detail1 processes specifically
related to
dailyworkinglimitsandcontrolsthatareuniquetotheNOPD.During
theperiod tested
theNOPDemployedover1,200officerswithaquarterlypayroll
inexcessof$23millionandanannualbudgetinexcessof$127million.Ninetyofficerswere
randomly selected for testing.
SeventeenNOPDofficersworkedmorethanthe16hoursand35minutesadayallowedinNOPDOperationsManualChapter13.15Overtime.
ThreeNOPDofficersworkedmore than24hoursofovertime
inaweekwithoutrequiredapprovals.FourteenNOPDofficersworkedmorethan32hoursofovertimeinaweekwhichwasinviolationofNOPDOperationsManualChapter13.15Overtime.Officers
could possiblywork up to 106 hours and 55minutes in aweek if
theyworked
themaximumovertimeandpaiddetailhoursinadditiontotheirnormaltourofduty.BeatBookswerenotproperlymaintained.
Twentytwoofficersdidnotapprovetheirtime inthe Beat Book as required
by NOPD Operations Manual Chapter 13.18 T.R.I.P.
PayrollSystem.Additionally,BeatBookswerenotavailablefor14oftheofficerstestedwhichwasinviolationofNOPDOperationsManualChapter13.18T.R.I.P.PayrollSystemandtheNOPDsrecordsretentionpolicy.Paiddetailswerenotproperlydocumentedorapproved.
NOPDofficers failed toenterpaiddetails into thepaiddetaildatabaseas
requiredbyNOPDGeneralOrder#906.
ThreeNOPDofficerswereinviolationofNOPDOperationsManualChapter22.8PaidDetailsbyworkingatotaloffourpaiddetailswhilealsoworkingtheirtourofduty.TwelveNOPDofficersworked50paiddetailswithout
a requiredbreakbetween theendof the tourofduty and thepaiddetail.
NOPDofficersworkedpaiddetailswithoutobtainingtheproperapprovalsasrequiredbyNOPDOperationsManualChapter22.8PaidDetails.
Furthermore,anofficer
splithisworkshifts,whichwasinviolationofNOPDGeneralOrder475,inordertoworkpaiddetails.Most
of the Citys responses/corrective actions to these findings are
contingent upon
thesuccessfulimplementationofADPandthetransitionofdetailstoOPSE.Note:AllresponsesfromtheCityinthebodyofthisreportaredirectstatementsandhavenotbeenmodified.
1Testsofpaiddetailprocesseswerelimitedtothoseprocessesthatfactorintopayrollprocessesandcontrols.
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I.OBJECTIVES,SCOPE AND METHODOLOGY
Theobjectiveofthisauditwastotesttheoperatingeffectivenessofthepayroll,overtime,andpaiddetailprocessesandcontrols.2Testsofpaiddetailprocessesandcontrolswerelimitedtothosecontrolsthatfactorintopayrollprocessesandcontrols.The
audit was conducted in accordance with Generally Accepted
Governmental
AuditingStandards(GAGAS)3andthePrinciplesandStandardsforOfficesofInspectorGeneral.4Thefollowingprocedureswereperformed:
1. Conducted interviewswithNOPD payroll personnel to gain an
understanding of theprocessesandcontrolsinvolved:
a. NOPDpayrollprocesses;b. Dutyschedulingforofficers;andc.
Paiddetailreporting.5
2. Obtainedalistingofthepaiddetailsfromthepaiddetaildatabase.3.
Obtained a listing of all paid details called in to the Orleans
Parish Communication
District(OPCD)forthetestingperiodandperformedthefollowing:a.
Testedthepaiddetaildatabaselistingforcompletenessbyselectingasampleof
90 details (confidence level 90%,margin of error 7%) from the
list of
detailscalledintoOPCD.ThissamplewasonlyusedforFinding#6.
b. Verifiedwhether thedetail selectedwas includedon the listing
from thepaiddetaildatabase.
4.
ObtainedalistingofallNOPDemployeesfromDecember30,2012toApril6,2013andselectedasampleof90employees(confidencelevel95%,marginoferror10%)totest.ThissamplecontributedallfindingsexceptFinding#6.Performedthefollowingforeachemployeeselected:
a. ObtainedalistingoftheofficersTRIPtime;b. Obtained overtime
approval forms to verify whether overtime was properly
approved;c. Recalculated the officers time worked each day to
verify whether daily
maximumworkinghourswereexceeded;d. Recalculated the officers
overtime worked each week to determinewhether
maximumovertimelimitswereexceeded;e.
Recalculatedtheofficerstimereportedforpaiddetailseachweektodetermine
whethermaximumpaiddetaillimitswereexceeded;2AperformanceauditonthecitywidepayrollsystemwasreleasedinOctober2011.3PublishedbytheGeneralAccountingOffice(GAO),December2011Revision.4PublishedbytheAssociationofInspectorsGeneral,May2004Revision.5CitywideprocessesthatwerenotuniquetoNOPDwerenotretested.
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f. Verifiedwhetherpaiddetailswereworkedwhile theofficerwasonsick
leave,workmenscompleave,orondutyinjuryleave;and
g. Verified whether paid details overlapped with the officers
scheduled NOPDwork.
5. Developed findings, observations and recommendations as a
result of the testingperformed.
Computerprocesseddatawasprovidedandreliedupon.Aformalreliabilityassessmentofthecomputerprocesseddatawasnotperformed.Hardcopydocuments
reviewedsupported
theinformationcontainedinthecomputerprocesseddata.
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II. GENERAL NOPD PAYROLL FINDINGS
Finding#1Condition:Forthe90officerssampled,17NOPDofficersworkedmorethan16hoursand35minutesperday.Table1belowdisplayshoursworkedoverthelimitbyofficers.
Table1.HoursWorkedOvertheLimit
Officer
NumberofdaystheOfficerworked
exceedingthe16hour35minutelimit
Totalcumulativehoursover
limitOfficer1 7 14:00Officer2 5 13:15Officer3 3 5:15Officer4 2
4:50Officer5 4 4:45Officer6 1 4:00Officer7 2 3:50Officer8 1
3:25Officer9 3 3:10Officer10 4 3:00Officer11 2 2:55Officer12 1
2:25Officer13 1 1:45Officer14 1 1:25Officer15 1 1:00Officer16 1
1:00Officer17 1 0:30
Total 40 70:30Criteria: NOPDOperationsManualChapter13.15Overtime
stated that Employees
shallnotworkmorethansixteenhoursandthirtyfiveminutesinaday(excludingcourttime)Themaximumhourscitedincludedtheofficerstourofduty,overtimeandpaiddetails.Cause:NOPDsupervisorsdidnoteffectivelymonitorofficerstime.Effect:
Officers lacked proper restwhich could lead to poorwork performance
and
fatiguerelatedaccidents.Recommendation:Policiesshouldbeenforcedtopreventand/ordetectofficersworkingmorethanthemaximumhoursallowedeachday.
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CityCommentandCorrectiveAction:
InthedatedmainframeTRIPpayrollsystem, itwasdifficult for
supervisors to compute and monitor hours worked by officers in
multiple unitsoutsideof theirnormalworkassignment.With the
implementationofADP itwillbeeasier tomonitorhoursworkedbecause time
is recordedona single employee
recordacrossmultipleassignmentsviaabiometrictimeclockwithlivedatathatisreadilyaccessibleforsupervisorstomonitor.TheDepartmentplanstohavethePayrollUnitreiteratetosupervisorsduringannualinservice
training (Payroll processing session) the importance of closely
monitoring
hoursworkedbyemployeesundertheircommandtoenforcethepolicy.TheComplianceSectionwillalsoincreasetheirmonitoringofdistrictsrelativetothenew16hoursperdayworkmaximum.Finding#2Condition:
FourteenNOPD officersworkedmore than 32 hours of overtime in aweek.
Theunapprovedovertimetotaled126hoursand30minutes.Criteria:EmployeesshallnotworkmorethanthirtytwohoursofovertimeperweekwiththepermissionoftheemployeesAssistantSuperintendent,orOfficerCommander/Director.6Cause:TRIPreportsonlyshowedtheofficerstimeworkedbyunit;therefore,supervisorscouldnoteasilytrackovertimewhentheofficersworkedformultipleunitsduringthesameweek.Effect:Withoutappropriateapprovalfortheovertime,supervisorswerenotawareofthetotalhourstheofficerwasworking.Recommendation:
NOPDshouldrequest thattheCitydeveloppayrollreports thatshow
theofficers timeworked forallunitscombinedand
implementanearlywarningsystem
toalertthesupervisorsinadvancewhenanofficerisapproachingtheovertimelimit.City
Comment and Corrective Action: The Department agrees that
supervisors could
noteasilytrackovertimehoursworkedbyofficersduetolimitationsinTRIP.NowthatADPhasbeenimplemented
the Department is developing reports to assist supervisors with
tracking
ofovertimehours(earlywarning)Finding#3Condition:ThreeNOPDofficersworkedmorethan24hoursofovertimewithoutappropriateapproval.Theunapprovedovertimetotaled17hoursand41minutes.Criteria:
Employees shall not work more than twentyfour hours of overtime per
week(Sunday throughSaturday).
Thirtytwohoursofovertimeperweekmaybeworkedwith
thepermissionoftheemployeesAssistantSuperintendent,orOfficerCommander/Director.7Cause:
TRIP reports only showed the officers timeworked by unit.
Therefore, supervisorscouldnoteasily trackovertimewhen
theofficersworked formultipleunitsduring the
sameweek.6NOPDOperationsManual,Chapter13.15Overtime.7Ibid.
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Effect:Withoutappropriateapprovaloftheovertime,supervisorswerenotawareofthetotalhourstheofficerwasworking.Recommendation:
NOPD should request that the City develop payroll reports that
showofficers time worked for all units and/or budget codes combined
and implement an earlywarning system toalert supervisors
inadvancewhenanofficer isapproaching theovertimelimit.City Comment
and CorrectiveAction: Two of the three officers remain on staff and
theinformationwillbesenttotheDepartmentsPerformanceStandardsSectionforfurtherreviewtodeterminerecommendationsforfurtheraction.Aspreviouslystated,nowthatADPhasbeenimplemented
the Department is developing reports to assist supervisors with
tracking ofovertimehours(earlywarning).Finding#4Condition:Twentytwo
(24%)ofthe90officerstesteddidnotapprovetheirtime
intheBeatBook.8
Threeofficersdidnotapproveanyoftheirtime
Nineteenofficersmissedmultipleentries.
Criteria: NOPD Operations Manual Chapter 13.18 T.R.I.P. Payroll
System stated Everymember shall signhis/hernameon
theDailyBeatRollprintoutnext to each entry for
thatemployeeonadailybasisacknowledgingthattheworkingstatusandhoursarecorrect.Cause:OfficersandtheirsupervisorsdidnotproperlymonitortheBeatBooktoascertainthatofficerswereapprovingtimeasrequired.Effect:
Officers work status and/or hours could have been entered
incorrectly resulting
ininaccuraciesinbenefitsandpay.Recommendation: Officers should
follow policy and sign each Daily Beat Roll printout
toacknowledgethattheworkingstatusandhoursarecorrect.CityCommentandCorrectiveAction:TheDepartmentacknowledges
thatdaily signature
inthebeatrollbookwasapolicyrequirementintheTRIPsystem.Officerswererequiredtosignattheendof
their tourofduty toverifywork status.However,
inourcurrentADPenvironmentsignaturesareno
longerrequired,withutilizationofthebiometrictimeclocks,anemployeesfingerprint
servesas an electronic signatureand canbeauditedatany time to
verifyworkstatusFinding#5Condition:FourteenofficersBeatBookswerenotavailableforaudit.Fortwoofficerstested,theBeatBookwasnotavailableatall.For12otherofficers,manydaysoftheBeatBookweremissing.8Atotalof8,036entrieswerereviewedwithatotalof734entries(9%)missingofficerapprovals.
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Criteria: NOPD Operations Manual Chapter 13.18 T.R.I.P. Payroll
System stated Everycommanding officer shallmaintain all
originalDaily Beat Roll printouts, signed as
describedabove,forallemployeesunderhis/hercommandandshallberesponsibleforproducingsamewhen
ordered to do so by an authoritative source. The NOPD records
retention
schedulerequiredtheBeatRollBookstobemaintainedforthreecalendaryears.Cause:CommandingofficerswerenotproperlymaintainingtheBeatBooks.Effect:Officersworking
statusand/orhours couldhavebeenentered incorrectly resulting
ininaccuraciesinbenefitsandpay.Recommendation:CommandingofficersshouldmaintainBeatBooksasrequired.CityCommentandCorrectiveAction:
TheDepartmentacknowledgesthatsomeoftheBeatBookswerenotreadilyaccessibleduringthetestingperiod.TheDepartmentsrecordsretentionscheduledoesrequirethatwemaintainthreecalendaryearsofbeatrollbooks.However,inourpaperlessADPenvironment,theprintingandmanagingofbeatrollbooksisnowobsolete.Weareintheprocessofupdatingourpayrollpoliciesandrecordsretentionscheduletoreflectthenewandimprovedelectronicenvironment...
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III. NOPD PAYROLL FINDINGS RESULTING FROM PAID DETAILS
Finding#6Background:Whenofficersworkedadetail,onememberofthedetailwasrequiredtocalltheOPCD
to check inbefore commencementof thedetail.9 During the check
inprocess,OPCDissuedanitemnumberforthedetailwhichwasenteredintothepaiddetaildatabasebyeachofficer.10Thepaiddetaildatabaseprovidedinformationneededtocheckthenumberofdetailhoursanofficerworkedduringagivenperiod.Condition:Supervisorscouldnotproperlymonitortotalhoursworked(tourofduty,overtime,anddetailscombined)becauseofficersfailedtoenterpaiddetailsintothepaiddetaildatabase.Fiftytwo(57.8%)ofthe90officersthatcalled
inapaiddetailfailedtoentertheirpaiddetailintothedatabase.Criteria:NOPDGeneralOrder#906,datedMarch7,2012,requiredeachofficerworkingpaiddetails
to record them in thepaiddetaildatabasewithin the firsthourof
theirnext
tourofdutywhenpossibleandnolaterthantheendoftheofficerstourofduty.Cause:OfficersdidnotfollowtheNOPDspolicy.Effect:Supervisorswereunable
toaccurately track thehoursworkedby theofficers in
theirunit.Recommendation:TheNOPDpoliciesshouldbeenforcedtoensureallofficerspaiddetailsarerecordedinthepaiddetaildatabasesothatsupervisorscanproperlymonitoranofficerstotalhoursworked.City
Comment and Corrective Action: While the Department acknowledges
there wereerrors reflected in some entriesbeing
selfgeneratedbymembers, thedatabasedidprovidevalue in reasonably
predicting OPSE operational development strategies.
Departmentsupervisorswerenevergivengeneralaccesstothisdatabase,norweretheyrequiredtoverifythe
validity of information contained within. As the City completes
full transition to
OPSEtakeoverofpaiddetails,theneedformaintainingthisdatabasehasbecomeobsolete.Finding#7Condition:Threeofficersworkeda
totalof fourpaiddetailswhilealsoworking their
tourofdutyfortheNOPD.Criteria:
NOPDOperationsManualChapter22.8PaidDetails (OperationsManual)
statedOfficers or other employees authorized to work paid details
may perform or engage
inauthorizedpaiddetailsonlyduringthosetimeswhentheyareoffduty.9Therankingofficer,orseniorofficer
iftherewasnorankingofficer,called
inthedetailandprovidedthedetailitemnumbertotheotherofficersworkingthepaiddetail.10Eachofficerworkingapaiddetailwasrequiredtologtheinformationwithinthefirsthouroftheirnexttourofdutyunlessauthorizedbyasupervisorduetoexigentcircumstances.
However, itmustbeenteredbeforethemembersETOD[endoftourofduty].
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Cause:CertainofficersdidnotcomplywiththeOperationsManual.Effect:TheNOPDwasunderstaffedduringperiodswhentheofficerswereworkingpaiddetailsinsteadof
their tourofduty.11 Officersalsoreceivedpay
frompaiddetailsandNOPDat
thesametime.Recommendation:OfficersshouldabidebythepoliciesintheOperationsManual.CityCommentandCorrectiveAction:
The informationprovidedbyauditorswillbesenttotheDepartments
Performance Standards Section for further reviewand corrective
action aswarranted.Finding#8Condition:For theofficers tested,
twelveofficersworked5012paiddetails (14.5%of
the344detailstested)withoutabreakbetweenthetourofdutyandthepaiddetail.Criteria:InanemailtoallNOPDemployees,onApril13,2011,SuperintendentSerpasclarifiedthat,"Adetailendorstarttimeandatourofdutystartorendtimemustbeseperated[sic]byaresonable[sic]timespantoallowfortraveltoorfromyourplaceofassigment[sic]."Cause:OfficersandsupervisorsdidnotfollowSuperintendentSerpasdirectiveregardingstartandendtimesofpaiddetails.Effect:Theofficerwasunable
toworkall scheduled (and reported)hoursduringhis
tourofduty.Recommendation:OfficersandsupervisorsshouldcomplywiththeSuperintendentsdirective.CityCommentandCorrectiveAction:InourcurrentADPenvironment,biometrictimeclockentries
can be audited at any time to verify accuracy of punchin / punchout
times.Furthermore,as theCity completes full transition toOPSE,
truepayroll recordsassociated
topaiddetailswillbereadilyavailabletomanagersforcomparison.Finding#9Condition:Officersworkedpaiddetailswithouttheknowledgeorapprovaloftheirsupervisors.Ofthe90officerstested,36workedpaiddetails.Twentythreeofthe36officersweremissingapprovals.Fourofficersweremissingapprovalsforsomeofthepaiddetailsandnineteenoftheofficers
did not have approvals for any of the paid details. See Tables 2
and 3 below
foradditionalinformationfortheunapprovedpaiddetails.11Theactualnumberofofficersworkingpaiddetailsatthesametimeastheirtourofdutycouldbelargersincealldetailswerenotenteredintothepaiddetaildatabase.12Atotalof344detailswereincludedinthetestingforthisaudit.
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Table2.OfficersWorkingPaidDetailsWithoutApproval Number
Percentage
Numberofofficersworkingpaiddetails
36Numberofofficersmissingsomepaiddetailapprovals 4
11%Numberofofficersmissingallpaiddetailapprovals 19
53%Totalofficersmissingapprovals 23 64%
Table3.ComparisonofApprovedvs.UnapprovedPaidDetails Number
PercentageTotalapprovedpaiddetails 109
32%Totalunapprovedpaiddetails 235 68%
Totalreportedpaiddetailsforofficersin sample 344 100%
Criteria: NOPDOperationsManual,Chapter22.8PaidDetails
statedApproval
toworkpaiddetailsshallnotbeautomatic.Employeeswishingtoworkapaiddetailshallcompletethecurrent
New Orleans Police Paid Detail Authorization Form #21 (revised
02/01/2004) inadvance,priortoworkingthepaiddetail.Upon approvalby
theofficersDivisionCommander, theofficerwillbe allowed towork
therequested detail pending final approval of the Superintendent of
Police. There are
noexceptionsfromthisrequirement.Cause:OfficersdidnotfollowNOPDpolicyrequiringapprovalsforpaiddetails.Effect:
Without proper knowledge of the officers paid detail hours, the
supervisor
cannotaccuratelyverifythatofficersarenotworkingmorethan16hoursand35minutesaday.Recommendation:
NOPD should enforce its policy to prevent officers from working
paiddetailswithoutapproval.CityCommentandCorrectiveAction:TheDepartmentacknowledgesthat,ataminimum,theapproval
of a members Division Commander is required prior to an officer
working a paiddetail. The information provided by auditors will be
sent to the Departments
PerformanceStandardsSectionforfurtherreviewtoverifytheauditorfindingsandforadeterminationastowhether
further action is warranted. With the Citys transition to OPSE,
electronic
recordmaintenancehasprovidedenhancedoversightcapabilitiesassociatedtoapprovalstatus.
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IV. OBSERVATIONS
Observation#1NOPDOperationsManualChapter13.15Overtimelimitedtheamountofovertimeanofficercouldworkto24hoursaweek(32hourswithapproval).NOPDOperationsManualChapter22.8PaidDetailsstatedthatofficerscouldwork24hoursofpaiddetailsinaweek(32hourswithapproval).13Therefore,officerswereabletoworkupto106hoursand55minutesinaweekiftheyworkedthemaximumovertimeandpaiddetailhoursincludingtheirnormaltourofdutyasshowninTable4below.
Table4.TotalWorkHoursPossibleStandardtourofdutyhours
42:55Possibleovertimehours 32:00Possibledetailhours
32:00Totalpossiblehours 106:55
Observation#2Background:NOPDpoliciesprohibitanofficerfromsplittingworkshiftsduringthecourseofascheduled
tourofduty. Splitting awork shift isdefined as clockingout andback
inwithoutusinganytypeofleave14fortheworkinterruption.Observation:
OneofficersplithisworkshiftseighttimesonfourdifferentdaystoperformatrafficescortdetailwithintheCitylimits.SeeTable5below.NOPDGeneralOrder475statedthepracticeofsplittingworkshiftsisprohibited.15Whentheofficerlefthistourofdutytoperformthepaiddetail,theNOPDwasunderstaffed.
Table5.NumberofSplitShiftsPerDay
DateNumberofpaiddetailsworkedduringtourof
dutyWorktimemissedtoperformdetails
1/29/2013 1 0:302/5/2013 5 2:152/6/2013 1 0:152/7/2013 1
0:15Total 8 3:15
13NOPDOperationsManualChapter22.8PaidDetailsstatedthatdetailsinexcessofthe24hourlimitrequiredapprovalbytheSuperintendent.14Annualleave,sickleave,orcivilleavewasrequiredtobetakenbytheofficerwhensplittingashift.15IssuedonMarch30,1995bypreviousNOPDSuperintendentPennington.
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V. GLOSSARY OF TERMS 1. Associationof InspectorsGeneral
(AIG)Anassociationestablished in1996 toprovide
leadershipinthepromotionofintegrityeffortsingovernment.162.
BeatBookAcompilationofthedailybeatrollprintouts
foreachunitoftheNOPD.The
commandingofficerwasrequiredtomaintaintheBeatBooksfortheunit.3.
Beat Roll Printouts A daily printout for each unit of the NOPD
which indicated each
employeesworkingstatusandhoursforthegivenday.4.
BudgetCodeAnaccountingcodeusedtotrackcostsforthevariousunitswithintheCity.
Theofficerstimewaschargedtothebudgetcodecorrespondingtotheworkunitforeachshift.Anofficercouldworkformultipleunitsduringaweek.
5. Finding Findings in a performance audit can be any one or a
combination of thefollowing:17a.
Significantdeficienciesininternalcontrol,b. Fraudandillegalacts,c.
Violationsofcontractandgrantagreements,and/ord.
Abuse.Eachfindingcontainsfiveelements:condition,criteria,cause,effect,andrecommendation.
a. ConditionAnelementofafindingthatexplainswhathappened.b.
CriteriaAnelementofafindingthatexplainswhatisrequired.c.
CauseAnelementofafindingthatexplainswhytheconditionhappened.d.
EffectAnelementofafindingthatexplainstheimpactofwhathappened.e.
RecommendationAnelementofafindingthatprovidessuggestionstocorrect
thecondition.6. Generally Accepted Government Auditing Standards
(GAGAS) The standards used to
conduct governmental audits as recommended by the General
Accounting Office (alsoreferredtoastheYellowBook).
7.
GeneralAccountingOffice(GAO)AnagencywithintheU.S.GovernmentresponsibleforwritingtheYellowBook.
8.
ObservationObservationsemphasizeamatterthatmayormaynotaffectthequalityoftheorganizationsoperations.Observationsarenotfindingsanddonotrequirearesponsefromtheentity.
16Inspectorsgeneral.org/about/.17 General Accounting Office.
(December 2011 Revision) Government Auditing Standards United
States
GovernmentAccountabilityOfficebytheComptrollerGeneraloftheUnitedStates.
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9. Overtime Any timeworked in excess of 42 hours and 55minutes
aweek (Sunday
toSaturday).Paiddetailhoursarenotincludedintheovertimelimit.
10. Paid Details The offduty employment, for compensation, of
any employee of theDepartment by another individual, business,
establishment, or organization where theemployee is performing the
duties of a police officer or a function of the
policedepartment.18Detailswerepaidbytheindividual,business,establishment,ororganizationdirectlytotheemployee.
11.
PaidDetailDatabaseAdatabasewhichcontainedallselfreportedpaiddetailsworkedbyallpoliceofficers.Theofficerwasrequiredtoentertheinformationregardingapaiddetailworkedintothepaiddetaildatabaseduringthenexttourofduty.
12.
SignificanceAjudgmentcallbytheauditorthatisusuallybaseduponthefrequencyandmagnitudeofthedeficiencyorcondition.
13. SplitWorkShiftsTheprohibitedpracticeofclocking
inandoutduringashiftwithoutusinganytypeofleave19fortheworkinterruption.
14. Standards for Offices of Inspector General The standards
contained in the GAOsStandards for InternalControl in
theFederalGovernment (Also referred toasTheGreenBook)
15. TimeReporting InputProcedure (TRIP)The softwareprogram
theNOPDused to inputandtracktimeworked. Information input
intoTRIPwastransferredtothepayrollsystemusedbytheCityofNewOrleanstoprocessNOPDpayroll.
16. TRIPSheetThetermusedtorefertoanofficersweeklytimesheet.
ThetimeenteredintoTRIP for theweekwasprintedonaTRIP sheet
foreachofficer to review, sign,andsubmit to their supervisor. It
included theofficers timeworked for theNOPD
(includingtimeworkedindifferentdepartments)butdidnotincludetimeworkedonpaiddetails.
17. Tour ofDuty The police officers scheduledwork hourswhich
include roll call,
patrol,courttime,etc.Astandardtourofdutyiseighthoursand35minutesforatotalof42hoursand55minutes
inaweek. DuringMardiGrasandother
largespecialevents,theofficerstourofdutyincreasesto12hoursperdayforatotalof60or72hoursperweek.20
18.
UnitAunitwasunderthecommandofonesupervisorwhowasresponsibleforthedutiesoftheunit.Oneormoreofficerswereassignedtoaparticulartasksuchas
investigations,homicide,specialoperations,patrolofacertainarea,etc.
19. U.S.GenerallyAcceptedAccountingPrinciples (GAAP)The
standardguidelinesused infinancialaccountingintheUnitedStates.
18NOPDOperationsManual,Chapter22.8PaidDetails.19Officerswererequiredtotakeannual,sick,orcivilleavewhensplittingashift.20Someofficersworksixdaysaweekduringspecialevents.
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VI. OFFICIAL CITY COMMENTS CityCodeOrdinance21120section
(8)(b)Prior toconcludinganauditorevaluation report,which contains
findings as to the person or entity which is the subject of the
audit orevaluation,theOfficeof
InspectorGeneralshallprovidetheaffectedpersonorentitywithanInternalReviewCopyofthereport.Suchpersonorentityshallhave30daysfromtheelectronictransmittaldateofthereporttosubmitawrittenexplanationorrebuttaltothefindingsbeforethe
report is finalized, and such timely submitted written explanation
or rebuttal shall
beattachedtothefinalizedreport.AnInternalReviewCopyofthisreportwasdistributedtotheCityonJune23,2014toprovideanopportunitytocommentpriortothepublicreleaseofthefinalreport.ThecommentsweredueandreceivedonJuly23,2014.TheCityscommentsareincludedinthebodyofthisreportbehindeachfindingandinitsentiretybehindthissection.
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Mitchell J. Landrieu MAYOR
CITY OF NEW ORLEANS
DEPARTMENT OF POLICE P.O BOX 51480
New Orleans, Louisiana 70151
to protect and to serve
Ronal W. Serpas, Ph.D.
SUPERINTENDENT
July 23, 2014 Ed Quatrevaux, Inspector General Office of the
Inspector General City of New Orleans 525 St. Charles Avenue New
Orleans, LA 70130-3049 RE: New Orleans Police Department Payroll
Performance Audit Dear Inspector General Quatrevaux: Thank you for
giving the New Orleans Police Department the opportunity to review
and comment on your report titled New Orleans Police Department
Payroll Performance Audit. We appreciate the work done by your
staff in compiling this report, as well as the level of cooperation
shown by those involved. As you are aware, significant steps have
been taken by the Mayor and other City Officials to advance the
management of internal payroll controls. We are now in the final
stages of transitioning away from the antiquated human resource
mainframe system (AHRS) to a technologically advanced ADP Payroll
Application. Benefits associated with the ADP system will provide
greater oversight to our managers in access to real-time payroll
data, improved levels of security and other modernizations. We are
confident that automated reporting features associated with this
implementation will afford our supervisors the ability to more
easily recognize and address deficiencies within an employees fixed
payroll cycle. Following are our detailed responses to audit
findings and response actions: Finding #1: Seventeen NOPD officers
worked more than 16 hours and 35 minutes a day. Recommendation:
Policies should be enforced to prevent and/or detect officers
working more than the maximum hours allowed each day. Departments
Response: The Department acknowledges that there are instances
where officers have worked over the allotted 16 hours and 35
minutes a day. In the dated mainframe TRIP payroll system, it was
difficult for supervisors to compute and monitor hours worked by
officers in multiple units outside of their normal work assignment.
With the implementation of ADP it will be easier to monitor hours
worked because time is recorded on a single employee record across
multiple assignments via a biometric time clock with live data that
is readily accessible for supervisors to monitor. It should be
noted that the sampling of audited information was taken during a
time of peak special event coverage (Mardi Gras & Super Bowl of
2013); although not an excuse, manpower demands may have played a
role in officers exceeding the threshold.
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Page 2 NOPD Payroll Performance Audit 7/23/14 The Department
plans to have the Payroll Unit reiterate to supervisors during
annual in-service training (Payroll processing session) the
importance of closely monitoring hours worked by employees under
their command to enforce the policy. The Compliance Section will
also increase their monitoring of districts relative to the new 16
hours per day work maximum. Finding #2: Fourteen NOPD officers
worked more than 32 hours of overtime in a week. Recommendation:
NOPD should request that the City develop payroll reports that show
officers time worked for all units combined and implement an early
warning system to alert the supervisors in advance when an officer
is approaching the overtime limit. Departments Response: The
Department agrees that supervisors could not easily track overtime
hours worked by officers due to limitations in TRIP. Now that ADP
has been implemented the Department is developing reports to assist
supervisors with tracking of overtime hours (early warning). Again,
manpower shortage may have been a contributing factor during peak
special event coverage. Finding #3: Three NOPD officers worked more
than 24 hours of overtime without appropriate approval.
Recommendation: NOPD should request that the City develop payroll
reports that show officers time worked for all units and/or budget
codes combined and implement an early warning system to alert
supervisors in advance when an officer is approaching the overtime
limit. Departments Response: NOPD was able to verify that the three
officers did exceed the 24 hours of overtime without documentation
of authorization by a supervisor. Two of the three officers remain
on staff and the information will be sent to the Departments
Performance Standards Section for further review to determine
recommendations for further action. As previously stated, now that
ADP has been implemented the Department is developing reports to
assist supervisors with tracking of overtime hours (early warning).
However, given the extraordinary manpower demands placed on this
agency during the first quarter of 2013, we are encouraged to
discover that such a minute population of errors was found in such
a large organization and across multiple pay cycles. Finding #4:
Twentytwo NOPD officers tested did not approve their time in the
Beat Book. Recommendation: Officers should follow policy and sign
each Daily Beat Roll printout to acknowledge that the working
status and hours are correct. Departments Response: The Department
acknowledges that daily signature in the beat roll book was a
policy requirement in the TRIP system. Officers were required to
sign at the end of their tour of duty to verify work status.
However, in our current ADP environment signatures are no longer
required, with utilization of the biometric time clocks, an
employees finger print serves as an electronic signature and can be
audited at any time to verify work status. We believe it is
important to note that during the period covering this audit, there
were a number of documented instances of limited system access due
to required mainframe and/or application maintenance.
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Page 3 NOPD Payroll Performance Audit 7/23/14 Finding #5:
Fourteen NOPD officers Beat Books were not available for audit.
Recommendation: Commanding officers should maintain Beat Books as
required. Departments Response: The Department acknowledges that
some of the Beat Books were not readily accessible during the
testing period. The Departments records retention schedule does
require that we maintain three calendar years of beat roll books.
However, in our paperless ADP environment, the printing and
managing of beat roll books is now obsolete. We are in the process
of updating our payroll policies and records retention schedule to
reflect the new and improved electronic environment. It was also
pointed out by auditors that in one district, several beat roll
books were apparently misplaced during a move to a new facility.
For that, we apologize. Finding #6: NOPD officers failed to enter
paid details into the paid detail database. Recommendation: The
NOPD policies should be enforced to ensure all officers paid
details are recorded in the paid detail database so that
supervisors can properly monitor an officers total hours worked.
Departments Response: Although this finding is presented as part of
a NOPD payroll audit, we believe it is important to note that the
paid detail data base referenced in this report was not developed,
nor is it supported, as a payroll data base. In 2011, a rudimentary
application was developed by the Department as a way to compile
data associated to the Citys move to develop the new independent
Office of Police Secondary Employment (OPSE). Prior to this time,
there was no method for electronically tracking or predicting
information associated with paid details. There are no payroll
reports or City generated funds associated to use of data contained
in NOPDs internal paid detail tracking system. While the Department
acknowledges there were errors reflected in some entries being
self-generated by members, the data base did provide value in
reasonably predicting OPSE operational development strategies.
Department supervisors were never given general access to this data
base, nor were they required to verify the validity of information
contained within. As the City completes full transition to OPSE
takeover of paid details, the need for maintaining this data base
has become obsolete. Finding #7: Three NOPD officers worked a total
of four paid details while also working their tour of duty.
Recommendation: Officers should abide by the policies in the
Operations Manual. Departments Response: The Department
acknowledges that there are records suggesting a possible conflict
in reporting involving these three members. The information
provided by auditors will be sent to the Departments Performance
Standards Section for further review and corrective action as
warranted.
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Page 4 NOPD Payroll Performance Audit 7/23/14 Finding #8: Twelve
NOPD officers worked 50 paid details without a break between the
tour of duty and the paid detail. Recommendation: Officers and
supervisors should comply with the Superintendents directive.
Departments Response: In April 2011, an information notice was sent
to employees providing clarification that a paid detail start and
end time should provide for adequate travel time and must not
coincide with a members actual tour of duty hours when being
entered into NOPDs internal paid detail tracking data base. This
stipulation was subsequently made formal policy in the 4th Quarter
of 2013. In our current ADP environment, biometric time clock
entries can be audited at any time to verify accuracy of punch-in /
punch-out times. Furthermore, as the City completes full transition
to OPSE, true payroll records associated to paid details will be
readily available to managers for comparison. Finding #9: NOPD
officers worked paid details without the knowledge or approval of
their supervisors. Recommendation: NOPD should enforce its policy
to prevent officers from working paid details without approval.
Departments Response: The Department acknowledges that, at a
minimum, the approval of a members Division Commander is required
prior to an officer working a paid detail. The information provided
by auditors will be sent to the Departments Performance Standards
Section for further review to verify the auditor findings and for a
determination as to whether further action is warranted. With the
Citys transition to OPSE, electronic record maintenance has
provided enhanced oversight capabilities associated to approval
status. ______________________________ We would like to again
extend our appreciation to the Office of the Inspector General for
providing this agency an opportunity to comment. We commend all of
the members of your staff participating in this review for their
thoroughness and professionalism. Sincerely, Ronal W. Serpas
Superintendent of Police cc: Andrew Kopplin, Deputy Mayor & CAO
Emily Arata, Deputy Mayor of External Affairs Jerry Sneed, Deputy
Mayor of Public Safety Stephanie Landry, Deputy Superintendent /
MSB Jay Ginsberg, Deputy Superintendent / Compliance File
NOPD Payrol Report.pdfNOPD Response CITY OF NEW
ORLEANSDEPARTMENT OF POLICEP.O BOX 51480Ronal W. Serpas, Ph.D.
Mitchell J. Landrieu