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Audit finds inconsistent retiree payout calculations; fire department says eMERGE rollout and MOU talks will address issues
Summary
Auditors found inconsistent application of a sick‑leave cap on retiree payouts and contested recommendations tied to an historical settlement; the Fire Department said the issue affects a fixed list of legacy employees, will pursue MOU clarifications with DHR, and expects eMERGE payroll conversion to help resolve data and process gaps.
The City Services Auditor reported that a payroll audit of the San Francisco Fire Department found inconsistent treatment of sick‑leave caps when calculating retiree payouts and wellness incentives, and that auditors identified instances where a retiree was paid more than the cap would allow.
Tanya Ledes said the audit tested retiree payouts and found one example where a wellness incentive was increased by excess hours because the sick‑leave cap was applied inconsistently in the calculation. The department had originally said the exception could be explained by a settlement from the mid‑1990s, but CSA said auditors have not received a copy of that settlement and could not verify the basis for the exception. CSA recommended either producing the settlement, documenting consistent procedures to justify exceptions, or clarifying MOU language with the union so calculations are auditable and consistent.
Deputy Chief Ray Guzman and acting fire department representatives told the committee they have implemented many internal changes, are working with the Department of Human Resources on meet‑and‑confer issues that require MOU amendments, and have planned to be among the early departments adopting the Emerge payroll system. The department said the apparent settlement applied only to a list of legacy employees and that, as those employees retire, the list shrinks; the department and the City Attorney did not have the full settlement document on file.
The auditors noted that some contested recommendations will likely require labor negotiations and that Emerge is expected to mitigate problems that stem from mismatches between time‑capture and payroll systems. CSA said it will continue follow‑up testing and present results in a memorandum later this quarter.
