Purpose

To determine the extent of implementation of the six recommendations included in our initial report, Forensic Audit of Select Payroll and Overtime Practices and Related Transactions (2010-S-60).

Background

Our initial report, issued on November 9, 2011, determined that certain Metro-North Railroad employees received costly payments due to long-term practices related to Hours of Service that may have been avoidable. For calendar 2010, we determined that these practices cost Metro-North $991,208 in overtime and $216,128 n regular pay, and enriched certain staff and supervisors. In addition these payments will inflate future pension payments for these employees by about $5.5 million. We also found missed time punches by certain employees were frequently not supported by exception reports.

Key Finding

• Metro-North Railroad officials made some progress in correcting the problem identified in our initial report. Of the six prior audit recommendations, two were implemented, two were partially implemented, and two were not implemented.

Key Recommendation

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

Other Related Audit/Report of Interest

MTA- Metro-North: Forensic Audit of Payments to On-Board Service Managers (Follow-up) (2015-F-15)