Overtime and Compensatory Time: Enhanced oversight will improve transparency.

Published January 9, 2024

Due to time constraints during the Vacation and Sick Leave audit, a comprehensive review of compensatory time was deferred. Given its direct association with compensatory time, the decision to include overtime into the overall review was apparent.

What was found:

Deschutes County overtime expenses surged over 30% in Fiscal Year 2023 outpacing increases in overall personnel costs. As the County increasingly depends on overtime to maintain the delivery of quality services, the need for a strong control foundation becomes more crucial. The review focused on systemic and policy-related controls for both overtime and compensatory time. Audit findings are summarized below:

Overtime reporting. The Board receives monthly financial reports updating them on the current state of major County funds. emphasizing vacancy savings is common in personnel cost discussions; however, incorporating overtime expenses into the conversation would provide greater transparency and accountability.

Overtime documentation practices. For over a decade, employees who are typically exempt from overtime have been receiving overtime compensation. Centralizing the documentation supporting these decisions would optimize their accessibility.

County policy. The County policy on overtime and compensatory time includes a 180-day compensatory time mandate that is not enforced. Furthermore, including compensatory time in the calculation of regular hours in an employee's workweek creates opportunities for limited exploitation of the overtime system. Revisions are needed to clarify expectations for both management and employees.

System management. County timekeeping system controls and security measures can be improved to ensure intended functionality.

What was recommended:

• The County should improve the transparency of overtime spending and compensation decisions.
• The County’s policy on overtime and compensatory time should be updated to reflect current practice.
• The Finance Department should ensure the timekeeping system is kept up to date and secure.

Recommendation update:

At the time of the follow-up, Finance had begun reporting overtime regularly to the Board and improved system management. Human Resources was working on centralizing overtime documentation and refining policies.