City auditors find weak controls on acting pay after nearly $8 million in payouts; administration vows fixes

City auditors told the Committee on Finance on April 21 that the city’s internal controls over acting (out-of-title) pay were deficient, raising the possibility that some payments may not have complied with New York State civil service rules.

Sam Bruno, the city auditor, said the audit found that from 2017 through 2026 the city spent just under $8,000,000 on acting pay and that the comptroller’s office and HR had not consistently reviewed or approved those payments in accordance with state law. "From 2017 to 2026, the City of Buffalo spent, just under $8,000,000 on acting time pay," Bruno said, adding that during the audit period an average of 136 employees received acting pay and that the number for the next pay date had dropped to 108 after initial corrections.

Why it matters: Acting pay affects annual payroll costs, pension contributions and Social Security obligations; auditors said failures of approval and documentation increase the risk of improper payments and complicate budget planning. The deputy controller also noted that the city’s budgets in recent years have relied in part on nonrecurring revenues, which heightens the importance of controlling recurring personnel costs.

What auditors found: The audit documented four broad problems: (1) payroll data showing many long-term or repeated acting assignments, sometimes in violation of the three-month guidance in New York civil service law; (2) inconsistent or missing documentation to justify emergency or temporary appointments; (3) a largely manual payroll reconciliation process that relies on large spreadsheets and increases the potential for human error; and (4) varying language across collective bargaining agreements and MOUs that complicates consistent interpretation and enforcement. Bruno said the audit did not conclude payments were intentionally improper but that without prior HR approval and documentation "there's potential that a portion of that money" may not have been payable under law.

Administration response and next steps: Deputy Mayor Maria White said the administration had already convened office hours with commissioners, created a new form and rerouted workflow so HR reviews acting-pay requests before they reach payroll, and pledged to develop a written corrective action plan. "We are working our way through the 136 individuals," White said, noting the city had reduced the number to about 108 and that HR had already rejected some submissions. Rob Quinn, the director of employee labor relations, said week-to-week reviews and refinements are in place and that the administration is posting vacant jobs where appropriate to create permanent staffing solutions.

Oversight and follow-up: Deputy Controller Delano Dow and the auditors said the comptroller’s office expects HR to certify payroll approvals and to submit the documentation biweekly; the controller’s office plans follow-up work on the audit findings. The committee also asked for continued reporting as the administration implements the corrective plan.

The committee closed discussion on the audit and tabled further action at the meeting; the comptroller and administration said they would continue collaborative work and provide regular updates and documentation to the finance committee.