Skip to Navigation
Skip to Main content
OIG Home
OIG Home


Skip SHARE THIS PAGE section Skip STAY CONNECTED section

Board Report:  March 9, 2007

Audit of the Board's Compliance with Overtime Requirements of the Fair Labor Standards Act


available formats

As a result of the questions raised during our audit of the Board's payroll process, we performed additional audit work related to the Board's compliance with FLSA overtime requirements. Our audit objectives were to determine whether the Board's payroll system correctly calculates FLSA overtime premiums and whether Board employees eligible to receive the premium have been appropriately identified in the system. As part of our audit, we analyzed payroll data and reviewed appropriate policies, laws, and regulatory guidance.

Overall, we found that the software calculations for the FLSA overtime premium were correct and that the payroll system correctly identified staff eligible to receive premium, in accordance with current Board practice. However, we found that payroll staff must manually initiate the process to compute the premium and we identified instances where the payments were not processed. Our audit work also identified other opportunities to enhance controls related to FLSA processing, as well as areas where Board policy does not adequately describe the current methods of calculating overtime for all Board employees. Our report contains two recommendations to address these concerns. We presented our audit results in a briefing to responsible Management and Legal Division officials. During the briefing, Management officials generally concurred with our findings and discussed actions that have been or will be taken to address the recommendations.