City audit finds Oracle timekeeping reduces some payroll risks but exceptions limit effectiveness

The city—s internal audit team presented findings on the Oracle Time and Labor (OTL) module, saying the new system automates several payroll controls but that exceptions built into the implementation blunt its effectiveness.

The audit, presented by Dwayne Braithwaite of the audit team, reviewed the OTL deployment and whether it addressed previously identified risks such as misapplied work rules, unapproved extra time, incorrect compensatory-time handling and miscalculated overtime. "The OTL module's automated rules should mitigate several risks we identified in previous audits," Braithwaite said during the Finance Executive Committee meeting.

The audit found the city combined timekeeping and payroll into a single system, reducing data discrepancy risk, but it also identified numerous exceptions to the clock-in requirement that create inconsistent treatment across departments. Audit staff said the Atlanta Fire Department was largely excluded from clock-in requirements because of command-structure and operational constraints, leaving many fire personnel paid by schedule rather than captured hours. The auditors cautioned this raises compliance risks under the Fair Labor Standards Act (FLSA), which requires employers to maintain accurate records of hours worked for nonexempt employees.

The audit recommended that the chief operating officer require all nonexempt employees to clock in and out, either with time clocks or city laptops, or direct Human Resources and the law office to advise departments on what time records must be kept to satisfy FLSA and city code requirements. The report also recommended discontinuing compensatory time for exempt employees and improving classification controls after the city's recent compensation and classification study.

Kimberly Finley, interim deputy commissioner for the Department of Human Resources, responded to the report at the meeting: "The Department of Human Resources agrees with the recommendations from the audit department." Braithwaite told commissioners that the audit team had directed two recommendations to the chief operating officer and one recommendation to the human resources commissioner; the COO agreed with the first recommendation and partially with the second.

Committee members thanked the audit team for the review and voted to accept the audit file. The committee did not adopt immediate new policies on the floor; it accepted the report and asked executive staff for follow-up implementation and guidance consistent with audit recommendations.

The audit presentation and the department response set out the next steps: HR and the COO are to provide guidance to departments on time records and to implement quality-control measures to ensure employee classifications reflect the updated compensation tables. The audit team also recommended monitoring changes to ensure classifications remain accurate.

The committee recorded the audit as accepted; the report will inform follow-up directives and potential ordinance or administrative changes pending further work by HR and the COO.