Baltimore Police Department

6th Consecutive Day Working and H-Day Cancellation Audit

Audit Completed August 11, 2020

This report reflects an internal BPD audit of the referenced topic. BPD strives for increased accountability, transparency and improvement through publicly reporting the contents of these reports.

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Table of Contents

Executive Summary 3

Work Plan 4-6

Background 7-12

Findings and Recommendations 13-23

Management Response 24

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Executive Summary This report presents the results of an audit assessing payments related to a member 6th day working

overtime, H-day cancellation penalty pay, and payments for members who are unable to reschedule their

cancelled H-days. The focus of the audit was to determine compliance with approved BPD policies and

agreements and whether internal controls were sufficient to prevent erroneous payments, unsupported

payments, fraud, and/or waste.

Recommendations in this report aim to equip the BPD to review and evaluate current Memorandum of

Understanding (MOU) provisions and improve the Department’s internal control and risk management

systems. In summary, Internal Audits Section (IAS) recommends that:

1. BPD and the City review the relevant MOU Articles discussed in this report when developing

future MOUs to determine the financial implications of maintaining the Articles as they are.

2. Fiscal Services provide additional training to timekeepers and approvers, where necessary. This

training should be accompanied by standard operating procedures on how to enter time and

approve time in a consistent manner across all BPD units.

3. Fiscal Services establish a policy that timekeepers make copies of all overtime slips, timecards

and other original supporting documentation that is released to outside entities to ensure that an

effective audit trail is always maintained. Future electronic human resources systems may

address this recommendation.

4. Fiscal Services should review the 10 instances of overpayments cited in this report totaling

$1,873 and work with these members to recover these overpayments.

5. BPD develop a specific form to request payment for cancellation of H-Day penalty pay and

payment resulting from an inability to reschedule cancelled H-Day. This form should include a

full description section to detail reason for H-Day cancellation and why the H-Day could not be

rescheduled.

6. Members should ensure that codes be entered prior to requesting supervisory authorization, and

supervisors must refuse to sign unless complete.

7. FS should establish a written policy that Timekeepers shall not enter forms unless complete with

a full code and description of overtime performed.

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Work Plan Purpose:

To determine whether the following payments were recorded and paid in accordance with approved

policies and agreements:

1. Overtimes payments related to a member working six consecutive days (referred to as 6th day

overtime henceforth in this report);

2. H-day (scheduled day off) cancellation penalty pay; and

3. Penalty payments to members who are unable to reschedule their cancelled H-days.

Background:

During an overtime assessment, Internal Audit Section (IAS) of the Compliance Bureau identified

internal control weaknesses that could possibly result in overpayments due to improper reporting and

approval of 6th day working overtime, H-Day cancellation penalty pay, and payments to members who are

unable to reschedule their cancelled H-Day.

As a result, IAS initiated a limited scope audit of 6th consecutive day working policies, procedures and

practices, which apply to non-patrol members.1 Due to the number of BPD Non-Neighborhood Patrol

Bureaus (non-patrol) and the large quantity of overtime forms that would require review, this audit was

limited to sworn members of the Warrant Apprehension Task Force (WATF). WATF was chosen

because it was one of the largest non-patrol units whose members also recorded significant overtime

during the audit period. Per the former IAS Commander, BPD management was to determine based upon

the findings in this report, whether a full scope audit would be necessary at the conclusion of the audit.

Objectives:

The objectives of the audit were to:

1. Identify members of WATF who received 6th day working overtime, penalty pay for

cancellation of their H-Day, or payment for a cancelled H-Day they were unable to

reschedule.

2. Determine if payments were made in accordance with the current Memorandum of

Understanding (MOU) and applicable BPD policies and procedures.

1The 6th consecutive day working payment provision of the Memorandum of Understanding between the Baltimore City Police Department and the Baltimore City Lodge No.3, Fraternal Order of Police, Inc. only applies to the non-patrol members. See MOU Article 11, Overtime and Hours of Work, pages 15-18.

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3. Determine whether internal controls were sufficient to prevent erroneous payments,

unsupported payments, fraud, and/or waste.

Scope:

The audit scope included the pay periods ending January 19, 2019 through September 28, 2019 for sworn

members of WATF during this time period.

Methodology:

We reviewed ADP-TA Electronic Time and Attendance System (e-time)2 reports for the pay periods of

January 19, 2019 to September 2019 to identify the total number of instances of 6th working days during

the audit period. The audit team identified the following thirty-seven (37) 6th day working instances that

would apply to WATF members whose tour of duty was Monday to Friday of each week.

Month Day

January 19,26

February 2,9,16,23

March 2,9,16,23,30

April 6,13,20,27

May 4,11,18,25

June 1,8,15,22,29

July 6,13,20,27

August 3,10,17,24,31

September 7,14,21,28

The auditor identified 41 WATF members whose e-time markings indicated they received overtime

payments for a 6th working day. These reports were also used to identify members who showed markings

for penalty pay payments and payments for cancelled H-Days they were unable to reschedule during a

designated work period. The auditor also reviewed all Baltimore Police Department- Overtime Report

2E-time is a time and labor internet/web-accessible management application that allows users to access and manage employee time and attendance submissions. Payroll specialists, approvers and payroll managers can enter, review, edit, and approve employee time cards; create and update work schedules; generate reports, and transfer information to Central Payroll for final processing. E-time is an exception payroll process. That means employees are assigned schedules and the ADP-TA user/manager edits the schedule, in the timecard as needed.

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Forms 1115 and Overtime Pre-Authorization Forms 1116 maintained by WATF timekeeper for the same

time period.

The auditor further examined bi-weekly payroll payments in the Human Resources Information System

(HRIS)3 for each of the 41 members identified to verify and reconcile payments indicated on e-time

reports and forms 1115 and 1116. IAS also reviewed the current Memorandum of Understanding, the

City of Baltimore Administrative Manual and applicable BPD overtime and e-time reporting and approval

policies and procedures. The auditor also interviewed BPD officials where applicable.

To test for internal controls, the auditor reviewed BPD Policy 1801- Employee Time and Attendance

Report Electronic Time and Attendance (e-time); current processes for e-time reporting, recording and

approval processes; and supporting documentation for entries made into e-Time.

Prior BPD Internal Audits:

None.

Risk Assessment:

Potential for inaccurate time entry, record keeping, fraud and overpayment/underpayment of wages.

3The City of Baltimore’s HRIS is also an internet/web-accessible application that lets BPD keep track of employees and their employment data. HRIS uses a series of inter-related data tables and databases to store and retrieve information. HRIS provides the Human Resources (HR) Managers with the necessary tools required to perform their daily operational processes efficiently thereby spurring better and enhanced services to the customer, the citizens, and the government of the City of Baltimore.

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Background

There are several relevant provisions of the Memorandum of Understanding between the Baltimore City

Police Department and the Baltimore City Lodge No.3, Fraternal Order of Police, Inc. (MOU) that apply

to: (1) cancellation of a members H-Day (scheduled day off), (2) compensation for a member who is

unable to reschedule their cancelled day within the same work period as the originally scheduled H-Day,

and (3) payment of overtime payment for working more than five work days in an established 7-day work

period (commonly referred to as 6th day working).

Article 8, Section J (1)(a) and (b): Scheduled Days Off (H Days)4

The MOU states that if an employee receives notice of the cancellation of their H-Day, which is not taken

in conjunction with approved leave, as provided in Section G.1 and H.3 of this Article, the employee shall

receive four (4) hours of pay (hereinafter “penalty pay”). The penalty shall apply even if the cancellation

of the H-Day is rescinded by the Department. If the cancellation is rescinded, and the employee is not

compelled to work, the relief for the rescinded cancellation is limited to the penalty pay.

The MOU further states that if an employee is compelled to work on their H-Day due to a cancellation, in

addition to the penalty pay, the employee shall be entitled to reschedule the substituted day off within the

same work period as the originally scheduled H-Day, subject to manpower constraints, as follows:

• If the employee can reschedule the substituted day off on the same day of the week as the

cancelled H-Day, he/she shall take that day off.

• If the employee is unable to reschedule the substituted day off on the same day of the week

within the same work period, the employee shall have the option either of taking the substituted

day off or receiving pay for the cancelled day at his/her regular rate of pay for the H-Day that was

forfeited in addition to the penalty pay.

It should be noted that the MOU states that an employee’s scheduled days off or approved leave shall not

be changed or cancelled solely for the purpose of payment of overtime over the objection of the

employee. The provision shall not apply if such day is cancelled for operational reasons. 5

Article 11: Hours of Work and Overtime for Non-Neighborhood Patrol Bureau Assignments6

4See MOU Article 8. Vacations, Holidays, Days Off and Special Leave, page 9. 5 See MOU Article 8. Vacations, Holidays, Days Off and Special Leave, page 10.

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The MOU states that the work period for non-patrol employees shall be 28 days and:

1. Employees may not be required to work more than five (5) work days in the established

seven (7) day work period (Sunday to Saturday) at straight time rates.

2. The workday for employees in non-patrol work assignments shall consist of eight (8) hour

tours of duty, with shift start and stop times established by the unit. All time worked in

excess of eight (8) hours or in excess of five (5) days shall be compensated at overtime rates.

3. Roll call will begin at the start of the eight (8) hour tour of duty. Accordingly, employees in

Non-Neighborhood Patrol Assignments shall be compensated for 8 hours each day, including

a ½ hour lunch.

Overtime payment for days worked in excess of 5 days (i.e. a 6th day working), under Article 11, would

only be eligible to non-patrol members whose tour of duty is Sunday through Thursday or Monday

through Friday and their H-Days being Friday and Saturday or Saturday and Sunday, respectively. This

is because the required consecutive five (5) work days must fall within the same established seven (7)

day work period (Sunday to Saturday). It should also be noted that MOU Article 11 C.1. states that all

days and hours of paid leave shall be treated as days and hours worked. Therefore, a member who takes a

scheduled and approved vacation day (V-Day) during said pay period week (Sunday to Saturday) could

be entitled to payment for a 6th day working.

There are also BPD overtime policies that apply to the scope of this audit (January 19, 2019 to September

28, 2019). Specifically, there were three Police Commissioner Memorandums applicable during this

scope.

Police Commissioner Memorandum (PCM) 18-01, “Overtime Pre-Authorization,” dated March 18, 2018.7

Key Secondary/Overtime provisions of PCM 18-01.

• Daily overtime must be pre-authorized and submitted on the Overtime Pre-Authorization Form 1116.

• Overtime must be pre-authorized and certified by a permanent-rank supervisor of at least one rank above the member who worked the overtime.

6 See MOU Article 11, Overtime and Hours of Work, pages 15-18 . 7 On March 16, 2018 former Police Commissioner Darryl De Sousa sent an email to all BPD that stated, “As a result of some confusion among our members regarding PCM 18-01, the policy will be implemented incrementally to give both members and command time to adjust to the new requirements. While the policy will remain in effect, no one will be disciplined for violations until I am satisfied that all members and command have had suffice time to adjust to the new requirements. During this transition time we will re-examine the workability of PCM 18-01 and make adjustments as necessary.”

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• Overtime must be pre-authorized by a supervisor within the same command as the member who worked the overtime.

• A detailed description of the work performed must be listed on Form 1116.

PCM 19-01, “Overtime Pre-Authorization”

PCM 19-01 was issued May 19, 2019 in order, “to ensure that all commanders and employees understand

the limit on the number of hours an employee may work in any capacity and the required time-off.”

Key Secondary/Overtime provisions in PCM 19-01.

• No member shall work in excess of 75 hours per week, which is inclusive of regular tour of duty,

all overtime and secondary employment.

• No member shall work in excess of 32 cumulative hours of overtime and/or secondary

employment in a week.

Police Commissioner Memorandum (PCM) 19-02, “Overtime Rules Clarification II,” dated July 30, 2019

According to the PCM, working too many hours without a necessary rest period has been shown to have a

detrimental effect on employee health and performance. To ensure that supervisors understand the

number of hours employees under their command are working and that they are receiving the necessary

time off, the below key directives became effective July 30, 2019.8 One of the required actions of the

PCM is that supervisors pre-authorizing and authorizing voluntary overtime, BPD secondary

employment, or uniformed secondary employment are to review requests and approve or disapprove

based on the health and wellness of the requesting member and operational needs. Commanders are also

required to manage the health and wellness of subordinates by reviewing requests for voluntary overtime,

BPD secondary employment, and uniformed secondary employment, and maintaining proper scheduling.

Key provisions in PCM 19-02

• All voluntary overtime, BPD secondary employment, and uniformed secondary employment must

be pre-authorized.9

8One of the required actions of the PCM is that Supervisors pre-authorizing and authorizing voluntary overtime, BPD secondary employment, or uniformed secondary employment are to review requests and approve or disapprove based on the health and wellness of the requesting member and operational needs. Commanders are also required to manage the health and wellness of subordinates by reviewing requests for voluntary overtime, BPD secondary employment, and uniformed secondary employment, and maintaining proper scheduling. 9 Pre-Authorization means the member is approved by their parent command to work the voluntary overtime, BPD secondary employment, or uniformed secondary employment before the overtime hours are worked. This shall be completed by the member’s parent command. EXCEPTION: In emergency circumstances, one hour of overtime is deemed pre-authorized for

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• Members who work voluntary overtime, BPD secondary employment, or uniformed secondary

employment must submit Form 1116 with all required signatures to the member’s payroll clerk

by the next regularly scheduled tour of duty. Payroll clerks may only accept and enter completed

Forms 1116 with all required signatures for voluntary overtime, BPD secondary employment, and

uniformed secondary employment submissions.

• All pre-authorization must be completed by a supervisor within the member’s parent chain of

command.

• All authorization and certification must be completed by a supervisor within the chain of

command where the voluntary overtime, BPD secondary employment, or uniformed secondary

employment was performed.

• No supervisor shall pre-authorize, authorize, or certify voluntary overtime, BPD secondary

employment, or uniformed secondary employment, if as a result of working the overtime

requested, the requesting member will exceed the 32 hour overtime cap or 75 hour working cap,

unless such request is absolutely necessary and has been approved by the member’s command.

Such a request shall be made in writing and must be approved in writing by the member’s parent

command and noted in the Log.

• The number of pre-authorized hours must be indicated on the Overtime Pre-Authorization Form

1116. A detailed description of the work to be performed must be listed.

• Supervisors pre-authorizing, authorizing and/or certifying voluntary overtime, BPD secondary

employment, or uniformed secondary employment must maintain a Log for all requests for

voluntary overtime, BPD secondary employment, or uniformed secondary employment to

document all requests reviewed, the members making the request, the date of the request, the

number of hours pre-authorized, and notes related to the decision to approve or disapprove the

request. Logs are to be maintained and accessible indefinitely.

• Commanders must monitor overtime, BPD secondary employment, and uniformed secondary

employment earnings within their command by maintaining a log. Logs are to be maintained and

accessible indefinitely. Commanders may implement stricter standards than those listed in this

PCM for tracking voluntary overtime, BPD secondary employment, and uniformed secondary

employment provided they do not violate any of the directives in this PCM.

immediate response to emergency incidents. Thereafter, additional overtime must be pre-authorized. The Overtime Pre-Authorization Form 1116 must still be completed if the member is drafted or directed to work mandatory overtime. If an immediate supervisor is not available to pre-authorize voluntary overtime, BPD secondary employment, or uniformed secondary employment, members must seek pre-authorization from a supervisor ascending their chain of command.

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There are provisions of BPD Policy 1801- Employee time and Attendance Report Electronic Time and

Attendance (e-Time) and the e-time user manual applicable to this audit and specific to the auditor’s

internal control testing.

Key Components of BPD Policy 1801

Timekeeper – The employee responsible for the daily markings in Electronic Time and Attendance (e-

Time) and for maintaining all related supporting payroll documents.

Payroll Approver – The employee assigned by the District/Unit Commanding Officer to certify the

correctness of bi-weekly markings and overtime entries in Electronic Time and Attendance (e-Time).

Along with Timekeepers, the Payroll Approver shall be aware of BPD and City policies on payroll and

related topics.

Responsibilities of Time and Attendance Management - Markings in Time and Attendance

District/Unit Commanders

1. Designate a primary and secondary Time Keeper, and approver.

2. Submit the names of the Time Keepers and Payroll Approvers in writing to the Director, Fiscal

Services (FS).

3. Ensure newly assigned Timekeepers and Payroll Approvers receive training provided by FS.

Timekeepers

1. Ensure every employee has adequate markings per pay period consisting of in-and-out punches or

pay codes.

2. Ensure all markings in Time and Attendance are completed with accuracy.

3. Request the Payroll Approver certify payroll upon completion.

Payroll Approver

1. Review the “Pay Period Closed” and “Reconciled Time Card” (for overtime) for the number of

hours worked per employee.

2. Review all hours entered into e-Time to ensure accuracy of time worked.

Agency Payroll Managers

1. Review the Time and Attendance Report after the Payroll Approver.

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2. Check for accuracy and discrepancies. If discrepancies arise, immediately notify the appropriate

Unit/Section/Division/District to resolve the issue.

3. Grant final sign-off/approval.

Director, Fiscal Services

1. Conduct training sessions in the preparation and marking of Time and Attendance Reports on a

quarterly basis or as needed, or upon request by a specific unit.

2. Conduct random audits of the Time and Attendance Report to ensure that entries reflecting

attendance, authorized leave, etc., are recorded properly and consistently.

Key Components of E-time User Manual

According to the manual, the City of Baltimore uses ADP-TA as an exception payroll process. That

means employees are assigned schedules and the ADP-TA user/manager edits in the schedule in the

timecard as needed. All ADP-TA users/managers are responsible for maintaining compliance with all

City of Baltimore polices, memorandums of understanding, etc. Agency Human Resource (HR) mangers

should be consulted when questions arise involving leave usage, Family Medical Leave, overtime and

entitlements, etc.

Roles and Responsibilities:

Timekeepers are responsible for collecting timesheets from work locations and entering time into the

system. Approvers are responsible for reviewing Timekeeper’s payroll entries. After reviewing payroll,

Approvers have the option to make corrections (if necessary) or approve the payroll. Payroll Managers

are ultimately responsible for reviewing all system payroll entries. After reviewing agency payroll,

Payroll Mangers have the option to make corrections (if necessary) or approve the payroll.

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FINDINGS AND RECOMMENDATIONS

Finding #1: In accordance with the MOU, members were paid for 6th day working, H-day

cancellation and cancelled H-days they were unable to reschedule. This payment however resulted

in members paid an effective rate three (3) times their regular hourly rate of pay, an effective rate

and benefit not applicable to all sworn members.

As stated in the background, the work period for non-patrol employees shall be 28 days and:

1. Employees may not be required to work more than five (5) work days in the established

seven (7) day work period (Sunday to Saturday) at straight time rates.

2. The workday for employees in non-patrol work assignments shall consist of eight (8) hour

tours of duty, with shift start and stop times established by the unit. All time worked in

excess of eight (8) hours or in excess of five (5) days shall be compensated at overtime rates.

Additionally, if an employee receives notice of the cancellation of their H-Day, which is not being taken

in conjunction approved leave, the employee shall receive four (4) hours of penalty pay. The penalty

shall apply even if the cancellation of the H-Day is rescinded by the Department. If the cancellation is

rescinded, and the employee is not compelled to work, the relief for the rescinded cancellation is limited

to the penalty pay.10

Lastly, if an employee is compelled to work on their H-Day due to a cancellation, in addition to the

penalty pay, the employee shall be entitled to reschedule the substitute day off within the same work

period as the originally scheduled H-Day, subject to personnel constraints, as follows:

• If the employee can reschedule the substituted day off on the same day of the week as the

cancelled H-Day, he/she shall take that day off.

• If the employee is unable to reschedule the substituted day off on the same day of the week

within the same work period, the employee shall have the option either of taking the substituted

day off or receiving pay for the cancelled day at his/her regular rate of pay for the H-Day that was

forfeited in addition to the penalty pay.

The auditor identified 41 WATF members who received overtime payments for working more than 5

work days in a 7-day period (a 6th working day). Our audit found that the rate of pay,(overtime rate ) for

10See MOU Article 8. Vacations, Holidays, Days Off and Special Leave, page 9. Per the MOU, H-Day is defined as a Member’s Regular Scheduled Days Off. See MOU Article 8. Vacations, Holidays, Days Off and Special Leave, page 6.

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the 6th day worked was in accordance with the MOU and calculated correctly. Table 2 presents a

summary of the wages for the 41 members.

Table 2 Summary of Members Receiving 6th Day Working Overtime Payments

Pay Period Ending 1/19/2019 to 9/28/2019

Gross wages

Gross OT Hours OT Wages

6th Day Instances

OT Hours OT Wages

1 $98,013.42 453.99 $30,382.46 2 21.2 $1,362.55 2 $29,458.36 8.33 $517.54 1 8.2 $509.47 3 $88,116.69 650.35 $33,421.68 4 37.2 $1,903.59 4 $82,431.47 224.64 $14,719.70 5 48.63 $3,250.51 5 $90,014.47 537.56 $30,460.16 8 58.2 $3,480.85 6 $122,395.21 3,979.82 $51,062.81 24 153.35 $10,249.91 7 $117,881.06 238.27 $19,418.04 11 68.61 $5,828.52 8 $92,630.11 387.90 $25,119.81 6 44.2 $2,817.19 9 $91,691.24 404.09 $25,561.90 9 61.4 $4,104.08

10 $77,399.19 359.67 $19,756.85 13 78.1 $4,251.57 11 $151,953.17 1,219.69 $77,816.75 16 120.39 $7,966.80 12 $103,895.44 577.93 $36,513.17 5 120.39 $2,485.21 13 $95,911.38 525.51 $31,639.28 9 71.57 $4,370.02 14 $143,140.71 859.62 $81,153.64 20 120.7 $13,347.79 15 $71,728.50 104.90 $6,627.40 5 28.15 $1,641.54 16 $128,694.10 943.32 $57,904.95 16 124 $6,983.70 17 $86,946.71 309.09 $20,312.72 11 71.58 $4,281.05 18 $129,904.83 1,060.65 $64,239.88 20 180.11 $10,054.08 19 $135,847.98 3,679.16 $65,111.52 15 126.75 $7,580.66 20 $71,260.49 479.72 $22,175.97 5 42.30 $1,778.29 21 $76,221.18 109.61 $7,312.74 3 24.29 $1,487.76 22 $81,030.14 1,334.29 $5,030.06 4 33.53 $2,219.35 23 $96,432.60 629.83 $27,487.70 8 61.15 $3,495.33 24 $47,076.71 159.90 $10,195.04 5 38.7 $2,295.38 25 $123,783.64 812.99 $53,431.85 11 83.39 $4,993.39 26 $122,301.89 377.76 $28,984.42 5 29.55 $1,998.40 27 $116,021.57 563.33 $39,317.94 11 60.65 $3,385.48 28 $106,614.26 611.21 $38,646.65 14 94.3 $5,452.04 29 $71,864.26 98.50 $6,239.15 2 10 $583.10 30 $70,477.24 80.04 $5,096.32 1 8.2 $477.06 31 $126,883.03 3,878.99 $52,030.87 5 22.33 $1,523.35 32 $87,647.08 428.65 $25,531.84 1 8 $471.28

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33 $118,721.86 1,523.61 $44,100.06 9 60.8 $4,231.07 34 $70,655.66 156.41 $9,291.96 2 15.3 $901.40 35 $93,154.26 426.24 $27,215.46 6 37.24 $2,353.60 36 $113,444.46 2,957.24 $45,735.05 12 82.48 $5,375.30 37 $75,559.00 3,661.27 $9,893.97 3 15.44 $967.54 38 $87,487.10 108.52 $8,858.98 3 20.2 $1,492.78 39 $77,948.10 322.24 $18,699.75 6 36.84 $2,092.51 40 $72,370.15 857.45 $6,852.46 1 8 $534.72 41 $102,150.80 513.56 $33,532.46 4 31.1 $1,998.83

Total $3,947,159.52 36,615.85 $1,217,400.95 321 2,366.52 $146,577.05 Source: E-time Report, HRIS Paycheck Summary, Forms 1115 and 1116.

We also reviewed 6th day working payment requests submitted with both an H-Day cancellation penalty

pay and a payment request for being unable to reschedule the cancelled H-Day payment. We found that

the members in our scope submitted this type of combined request 75 times.

This resulted in the member being paid 4 hours straight time for H-Day penalty pay, 8 hours at their

overtime rate for the 6th working day, and 8 hours straight time pay for their not being able to reschedule

the cancelled H-Day. Table 3 presents a summary for a non-patrol member with a regular hourly rate of

pay of $39.00 per hour assuming that the member worked 8 hours on their cancelled H-Day, and

assuming that the member’s regular tour of duty is Monday through Friday with their H-Days being

Saturday and Sunday.

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Table 3 Hourly Rate Calculation for Non-Patrol Member

Payment Request Hours Hourly Rate of

pay Total Payment

H-Day Cancellation 4 $39.00/Straight

Time $156.00

6th Day Working 8 $58.50/Overtime $468.00

Unable to Reschedule

Cancelled H-Day 8 $39.00/Straight

Time $312.00

Total $936.00

Total cash sum for this worked day would be $936.00 with an effective hourly rate of $117.00 or 3 times

the member’s hourly rate. Because the member could not reschedule their H-Day on the same day of the

week within the same work period, because the Saturday had already been used, they would automatically

be entitled to receive payment for not being able to reschedule the cancelled H-Day at their regular rate of

pay for 8 hours.

This full benefit would not be applicable to a district patrol member because the 6th day payment

provision only applies to the non-patrol members. Additionally, the patrol member has 28 days to

substitute their cancelled H-Day and the member would not automatically be guaranteed payment for a

cancelled H-Day.11

Table 4 presents the rate of pay for a patrol member with a regular hourly rate of pay of $39.00 per hour

assuming that the member worked 8 hours on their cancelled H-Day, and assuming that the member’s

regular tour of duty is Monday through Thursday or Friday with their H -Days being Saturday and

Sunday; and the member was unable to reschedule their H-Day within the 28 day work period.

11Per the MOU, a non-patrol work period shall be 28 days and makes no mention of an established seven (7) day work period (Sunday to Saturday) as written in Article 11 A.1. (see pages 15 and 16).

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Table 4 Hourly Rate Calculation for Patrol Member

Payment Request Hours Hourly Rate of

pay Total Payment

H-Day Cancellation 4 $39.00/Straight

Time $156.00

H-Day Working 8 $39.00/Straight Time $312.00

Unable to Reschedule

Cancelled H-Day 8 $39.00/Straight

Time $312.00

Total $780.00

Total cash sum for this worked day would be $780.00 with an effective hourly rate of $97.50 or 2.5 times

the member’s hourly rate. If this member were able to reschedule the H-Day, the cash sum for this day

worked would be $468.00 or an effective hourly rate of $58.50 or only 1.5 times the member’s hourly

rate.

This full benefit (as demonstrated in Table 3) would also not be applicable a non-patrol member whose

H-Days did not fall within the same seven (7) day work period and therefore the 6th working day overtime

payment would not apply. Table 5 presents a non-patrol member who is unable to use their H-Days

within the same 7-day work period (Sunday to Saturday) and is unable to reschedule their cancelled H-

Day.

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Table 5

Hourly Rate Calculation for Non-Patrol Member Whose H-Days Split Across 7-day Work Period

Payment Request Hours Hourly Rate of

pay Total Payment

H-Day Cancellation 4 $39.00/Straight

Time $156.00

H-Day Working 8 $39.00/Straight Time $312.00

Unable to Reschedule

Cancelled H-Day 8 $39.00/Straight

Time $312.00

Total $780.00

Again, the total cash sum for this worked day would be $780.00 with an effective hourly rate of $97.50 or

2.5 times the member’s hourly rate. If this member were able to reschedule the H-Day, the cash sum for

this day worked would be $468.00 or an effective hourly rate of $58.50 or 1.5 times the member’s hourly

rate.

The above MOU provisions have significant implications for different classes of members and can have

unforeseen financial implications dependent upon how many non-patrol members are afforded this

benefit.

Recommendation:

BPD and the City should review the relevant MOU Articles discussed in this finding when developing

future MOUs to determine the financial implications of maintaining the Articles as they are.

Finding #2: Additional internal controls are needed for time and attendance entries.

GAO standards state that management is responsible for an effective internal control system, and for

designing the policies and procedures to fit an entity’s circumstances and building them in as an integral

part of the entity’s operations.12 An important purpose of procedures is to ensure consistency and to help

reduce variation within a given process.

12(2014).Fundamental Concepts of Internal Control. Standards for Internal Control in the Federal Government, GAO-14-704G, pg. 6, 7.

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Key requirements of BPD’s policy on recording employee time and attendance (Policy 1801) include:

• The Timekeeper is the employee responsible for the daily markings in e-time and for maintaining

all related supporting payroll documents and that employees have adequate markings per pay

period consisting of in-and-out punches or pay codes; and

• The Payroll Approver is the employee assigned by the District/Unit Commanding Officer to

certify the correctness of bi-weekly markings and overtime entries in e-time.

In addition, key requirements of the e-time user manual sates that timekeepers are responsible for

collecting timesheets from work locations and entering time into the system. Approvers are responsible

for reviewing the timekeeper’s payroll entries.

We found that adequate controls do not exist to help minimize overpayments. The current e-time system

is an “exception” based payroll system. This means that employees are assigned schedules and the ADP-

TA user/manager (timekeeper and approver) edits the schedule, in the timecard as needed.13 We

identified 10 instances where members were supposed to be paid H-Day Penalty Pay or unable to

reschedule cancelled H-Day payments at a straight time rate and yet were paid at an overtime rate. These

instances resulted in overpayments of $1,873 during the audit scope. BPD is a large city agency and

overpayments in every locator due to the lack of sufficient internal controls could have a significant

impact.

We also found that supporting documentation for some entries was not available. This could be due to

filing issues or the fact that, according to the timekeeper, other outside entities (auditors and federal

authorities) had removed some of the original Forms 1116 for review. As a result, we were unable to

document $10,583 in 6th day overtime payments during the audit scope.

We further found variations within how time was entered. There was inconsistency from week to week.

Sometimes overtime was entered with just the overtime hours indicated and other and other times the

overtime was entered with in-and-out punches, as required by policy.

As stated in prior reports, there are no BPD standard operating procedures for entering time and

attendance and reviewing and approving time entries made by Timekeepers. Some Approvers review

overtime slips, while other approvers review only the e-time report to ensure that regular hours are correct

13(2020). Time and Attendance Flow, ADP e-Time Manual - City of Baltimore Time and Attendance Payroll Review, pg. 4. It should be noted that this also includes adjustments and additional payments such as overtime, clothing allowance, meals, etc.

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and there are no exceptions to the member’s bi-weekly schedule. The lack of effective internal controls in

processes increases the risk of overpayments occurring as cited above.

Recommendations:

1. Fiscal Services should provide additional training to timekeepers and approvers, where necessary.

This training should be accompanied by standard operating procedures on how to enter time and

approve time that is consistent across all BPD units.

2. Fiscal Services should establish a policy that timekeepers make copies of all overtime slips,

timecards and other original supporting documentation that is released to outside entities to ensure

that an effective audit trail is always maintained.

3. Fiscal Services should review the 10 instances of overpayments cited in this report totaling $1,873

and work with these members to recover these overpayments.

Finding #3: BPD has no written policy for submitting documentation request H-Day cancellation

penalty pay and unable to reschedule H-Day cancellation payments.

United States Government Accountability Office (GAO) Standards for Internal Control in Federal

Government says that procedures and controls should be established to ensure accurate and timely

recording of transactions. This applies to the entire process or life cycle of a transaction or event from

initiation and authorization through its final classification in summary records. An important purpose of

procedures is to ensure consistency and to help reduce variation within a given process.

Because the payments are outside a member’s regular schedule, adequate supporting documentation

should be submitted for approval to ensure accurate recording of all transactions in e-Time. This

documentation should be consistent across BPD units to ensure an adequate audit trail. We found there

are no clear written procedures for submission of documentation to receive H-Day cancellation penalty

and unable to reschedule H-Day cancellation payments. The auditor reviewed e-Time markings

indicating “police additional hours”; the notation code used by the timekeeper to enter time for both

penalty pay (4 hours) and when a member is unable to reschedule cancelled H-Day (8 hours). We then

tracked these markings to supporting documentation.

We found that WATF members were using a combination of the Baltimore Police Department-Overtime

Report Form 111514 and the Overtime Preauthorization Report Form 111615 to request payment. In most

14The Auditor was unable to find any specific policies directing the use of Form 1115. The Form dated 3/2017 was used prior to implementation of PCM 19-02 to report Secondary Overtime and Comp Time. Our review found the form is still being used to report Comp Time. 15 Per PCM 19-02, members who work voluntary overtime, BPD secondary employment, or uniformed secondary employment must submit Form 1116.

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cases the member would indicate on the submitted form that straight time should be used for the

requested hours. However, we did find occasions where “straight time” was not indicated on the form or

the Daily Overtime box was checked on form 1115.

We also found instances where members were actually paid overtime for these hours when they should

have been paid straight time. (Discussed and highlighted in the internal control section of this report).

Overpayment did not occur in every instance and may have been due to clerical error; however, the risk

for overpayment increases without a clear procedure and form.

Use of improper forms, such as 1116 overtime form, could skew total reported overtime hours worked

since these are not actually overtime payments but penalty payments and unable to reschedule H-Day

payments. These should be segregated as additional payments.

Recommendation:

BPD should develop a specific form to request payment for cancellation of H-Day penalty pay and unable

to reschedule cancelled H-Day. This form should include a full description section to detail reason for H-

Day cancellation.

Finding #4: WATF was generally in compliance with PCMs 19-01 and 19-02 for the scope of the

audit.

During the process of our review, we reviewed Overtime Preauthorization Report Form 1116 to assess

support for overtime markings in e-time for 6th day working payments. We also reviewed HRIS payroll

records to determine total gross and overtime wages and hours during the scope of our review. As a

result, we were also able to test for compliance with key requirements of PCM 19-01 and 19-02, specific

to the 1116 forms in our scope.16 We reviewed all key requirements except for log requirements. Table 6

presents our results.

Table 6 PCM 19-02 Compliance

Key Requirement

Compliance

Y/N/NA

No member shall work in excess of 75 hours per week, which is inclusive of regular tour of duty, all overtime and secondary employment.

Y

16Overtime worked on the 6th day.

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No member shall work in excess of 32 cumulative hours of overtime and/or secondary employment in a week.

Y

All voluntary overtime, BPD secondary employment, and uniformed secondary employment must be pre-authorized.17

Y

Members who work voluntary overtime, BPD secondary employment, or uniformed secondary employment must submit Form 1116 with all required signatures to the member’s payroll clerk by the next regularly scheduled tour of duty. Payroll clerks may only accept and enter completed Forms 1116 with all required signatures for voluntary overtime, BPD secondary employment, and uniformed secondary employment submissions.

Y

All pre-authorization must be completed by a supervisor within the member’s parent chain of command.

Y

All authorization and certification must be completed by a supervisor within the chain of command where the voluntary overtime, BPD secondary employment, or uniformed secondary employment was performed.

Y

No supervisor shall pre-authorize, authorize, or certify voluntary overtime, BPD secondary employment, or uniformed secondary employment, if as a result of working the overtime requested, the requesting member will exceed the 32-hour overtime cap or 75 hour working cap, unless such request is absolutely necessary and has been approved by the member’s command. Such a request shall be made in writing and must be a approved in writing by the member’s parent command and noted in the Log.

Y

The number of pre-authorized hours must be indicated on the Overtime Pre-Authorization Form 1116. A detailed description of the work to be performed must be listed.

N

Supervisors pre-authorizing, authorizing and/or certifying voluntary overtime, BPD secondary employment, or uniformed secondary employment must maintain a Log for all requests for voluntary overtime, BPD secondary employment, or uniformed secondary employment to document all requests reviewed, the members making the request, the date of the request, the number of hours pre-authorized, and notes related to the decision to approve or disapprove the request. Logs are to be maintained and accessible indefinitely.

N/A

Source: Forms 1116 and HRIS paycheck records.

We found that WATF was in substantial compliance with all but one of these requirements, entering

codes and detailed description on the form. We often found the codes were missing, and the description

was not detailed or readable. Not entering code and sufficient description of work may cause overtime to

be incorrectly classified for accounting and general ledger purposes.

We found that since implementation of the PCM in July 30, 2019, overtime hours for the members in our

review decreased significantly as they were not exceeding the 32 hour per week overtime cap. We

17 Pre-Authorization means the member is approved by their parent command to work the voluntary overtime, BPD secondary employment, or uniformed secondary employment before the overtime hours are worked. This shall be completed by the member’s parent command. EXCEPTION: In emergency circumstances, one hour of overtime is deemed pre-authorized for immediate response to emergency incidents. Thereafter, additional overtime must be pre-authorized. The Overtime Pre-Authorization Form 1116 must still be completed if the member is drafted or directed to work mandatory overtime. If an immediate supervisor is not available to pre-authorize voluntary overtime, BPD secondary employment, or uniformed secondary employment, members must seek pre-authorization from a supervisor ascending their chain of command.

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identified one instance of a member exceeding the cap, and this was fully explained and approved through

a form 95 in accordance with the PCM.

Recommendations:

1. Members should ensure that codes be entered prior to requesting supervisory authorization, and

supervisors must refuse to sign unless complete.

2. FS should establish a written policy that Timekeepers shall not enter forms unless complete with a

full code and description of overtime performed.

BALTIMORE POLICE DEPARTMENT MANAGEMENT RESPONSE TO COMPLIANCE AUDIT

Date: August 19, 2020 To: Deputy Commissioner Daniel Murphy, Compliance Bureau From: Chief of Staff Eric Melancon, Office of the Police Commissioner Subject: RE: 6th Consecutive Day Working and H Day Cancellation Audit Deputy Commissioner Murphy, Thank you for your team’s diligent work in reviewing the issue of 6th Day Pay and Cancelled H-Day rules. The Police Commissioner is committed to ensuring we strengthen accountability measures within the department, then verify those systems are being properly followed and when problems are identified they are quickly addressed. The work that your team produces Management’s response to the recommendations from the Compliance Bureau are detailed below:

1. BPD and the City review the relevant MOU Articles discussed in this report when developing future MOUs to determine the financial implications of maintaining the Articles as they are. As outlined in your team’s audit, the interaction of 6th day pay rules, H-Day cancellation rules, and the rule that all leave days are considered “days worked” for overtime purposes, results in an hourly rate payment that can be up to three times that of a normal rate of pay given the right set of circumstances. We must be especially conscientious of budgetary shortfalls due to recent economic downturn brought about from COVID-19. and we must always act as good stewards of the taxpayer dollar. Therefore, BPD Management will actively considering proposals that revise these provisions in the next round of collective bargaining, which is set to being in the coming months.

2. Fiscal Services should provide additional training to timekeepers and approvers, where necessary. This training should be accompanied by standard operating procedures on how to enter time and approve time in a consistent manner across all BPD units. Given the complexity and interactivity of these pay rules, additional training to timekeepers and centralization of timekeeper management will be implemented where necessary to ensure uniform and correct application of these pay rules.

3. Fiscal Services establish a policy that timekeepers make copies of all overtime slips, timecards and

other original supporting documentation that is released to outside entities to ensure that an effective audit trail is always maintained. Future electronic human resources systems may address this recommendation. When federal or state agencies require original pay documentation to substantiate work on joint projects, BPD must ensure that copies are retained for record keeping purposes. With the implementation of Workday (the City’s newly procured payroll system), BPD also anticipates a technological solution for maintaining digital records.

RE: 6th Consecutive Day Working and H Day Cancellation Audit Management Response Page 2

4. Fiscal Services should review the 10 instances of overpayments cited in this report totaling $1,873 and work with these members to recover these overpayments. Fiscal services will be directed to work with the 10 members identified in this audit to develop a recoupment plan to recover funds that were inadvertently overpaid.

5. BPD should develop a specific form to request payment for cancellation of H-Day penalty pay and

payment resulting from an inability to reschedule cancelled H-Day. This form should include a full description section to detail reason for H-Day cancellation and why the H-Day could not be rescheduled. In addition to a specific form to document H-Day cancellation pay, we are planning a technological solution with Workday to automate this process to ensure only the appropriate instances are paid at the appropriate rates per the FOP contract. Also, we should consider whom has the appropriate authority to cancel the H-Day as specified in the FOP contract; currently any rank-supervisor can authorize a cancellation if it is needed to fulfill operational need. BPD Management is considering a requirement to have a member of Command Rank be the only ones that can authorize H-Day Cancellation.

6. Members should ensure that codes be entered prior to requesting supervisory authorization, and supervisors must refuse to sign unless complete. Training for timekeepers can be extended to operational staff as well to ensure proper compliance. In addition, with the centralization of timekeepers and the addition of new technology, we can ensure that required fields are appropriately filled prior to submission.

7. Fiscal Services should establish a written policy that Timekeepers shall not enter forms unless

complete with a full code and description of overtime performed. Given the complexity and interactivity of these pay rules, additional training to timekeepers and centralization of timekeeper management will be implemented to ensure uniform and correct application of these pay rules. In addition, with the centralization of timekeepers and the addition of new technology, we can ensure that required fields are appropriately filled prior to submission.