Purpose

To determine the extent of implementation of the four recommendations included in our initial audit report, Management and Control of Employee Overtime Costs (2009-S-87).

Background

Our initial report, issued on August 17, 2011, determined that the Port Authority of New York and New Jersey (Port Authority) generally did not effectively manage and control employee overtime costs and we noted numerous examples of overtime being earned in excess of $75,000 annually by individuals whose salary base was at least $75,000. We also found overtime transactions that lacked the proper prior approvals and justification. In addition, the Port Authority did not meet the 20 percent overtime reduction goal established in its 2010 budget to the Governors of New York and New Jersey. Finally, the informal benchmark established by the Port Authority requiring its departments not to exceed 15 percent of base salaries was not met.

Key Finding

• The Port Authority officials made some progress in addressing the issued identified in our initial report. Of the four prior audit recommendations, one was implemented, two were partially implemented and one was not implemented.

Key Recommendation

• Officials are given 30 days after the issuance of the follow-up review to provide information on any actions that are planned to address the unresolved issues discussed in this review.