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Audit follow‑up flags over $1 million in police bankable overtime liability; city, union disagree on reforms
Summary
A follow‑up audit presented to the Springfield City Audit Committee found a previously reported liability of about $1.2 million in bankable overtime (BOT) for sworn police officers. Auditors recommended contract discussions to limit fiscal exposure; union resistance and negotiated limits complicate changes.
Young Ngo, audit staff, reported a follow‑up review of the Springfield Police Department’s bankable overtime (BOT) program and told the Audit Committee that officers may bank overtime up to 300 hours and the city faced a liability of roughly $1,200,000 at the time of the 2021 audit.
The program allows officers to elect comp time instead of immediate pay for overtime. Ngo said this creates long‑term liability because hours earned earlier at a lower pay grade may be cashed out later at a higher pay grade. "There's an inherent cost to the city in running this comp program," Ngo said.
Why it matters: The BOT program creates a multi‑year fiscal exposure that can grow with promotions and pay raises. The committee discussed whether negotiated contract language or bargaining with unions should require payout at grade changes or otherwise limit future liabilities.
Key points and details
- Program features: Officers may elect to bank overtime as comp time; BOT is capped at 300 hours per contract. Auditors reported a recorded BOT liability of approximately $1,200,000 in the original audit.
- Contract and legal context: Director Bill Mahoney told the committee that the Fair Labor Standards Act allows up to 480 hours but the city’s negotiated cap is 300 hours; the city negotiated the lower cap with the union.
- Audit recommendations and responses: The initial audit produced 10 recommendations; five were implemented, one was in process (updating BOT procedures), three were not applicable after payroll system changes, and one — asking the union to require cash‑out before promotion — was not implemented because the union opposed changing past practice.
- Operational tradeoffs: Mahoney and others noted an operational benefit: if an officer takes comp time and the department does not backfill the position, the city effectively avoids an immediate cash payout for overtime. Committee members pressed for updated data on current BOT liability and trends.
Reactions and follow‑up
Several councilors expressed concern that the liability could grow and asked audit staff to update the committee with current numbers. Ngo said the audit team would update the analysis to show the current liability and participation trends and report back to the committee.
Ending
The committee requested a follow‑up report with current BOT liability and a breakdown of how many officers are banking versus cashing out; staff indicated negotiations with unions remain the appropriate venue for any contractual change.
