MTA Overtime "Fraudulent"? - Comptroller to Investigate

New York’s DiNapoli to Probe ‘Suspicious’ MTA Overtime Spending

August 30, 2010, 12:48 PM EDT

By Martin Z. Braun

Aug. 30 (Bloomberg) -- New York State Comptroller Thomas DiNapoli said he will investigate “suspicious” spending by the Metropolitan Transportation Authority after an audit found overtime payments increased by 26 percent from 2005 to 2009.


Overtime paid to more than 140 employees at the MTA, the busiest U.S. transit agency, at least doubled their annual income, according to an Aug. 5 audit by DiNapoli. One Long Island Rail Road car repairman collected $142,857 in overtime pay, more than double his $64,865 annual wages. The agency spent $600 million in overtime in the period, the comptroller said.


DiNapoli said today he will conduct a “forensic” audit of the MTA focusing on “suspicious transactions and practices” identified in the audit, according to a news release. Forensic audits seek to identify evidence of fraud and wrongdoing that may result in referrals to law enforcement, DiNapoli said. Standard audits evaluate controls and recommend cost savings.


Olayinka Fadahunsi, a spokesman for DiNapoli, declined to offer specific examples of suspicious overtime transactions at the MTA, saying it might compromise the probe, which may take “a few months” to complete.


DiNapoli’s prior audit found a lack of justified or undocumented work in more than three-quarters of 77 MTA overtime transactions sampled by his office, Fadahunsi said. Auditors will also inspect work locations to make sure that MTA staff is working during their assigned shifts and that overtime scheduling has been properly reviewed and approved by supervisors.


“There was reason to believe something potentially fraudulent is going on,” Fadahunsi said.


In May the MTA, which carries 8.5 million weekday riders, said it would reduce overtime costs by $22 million this year and $60 million next year by cracking down on employee absenteeism, changing outdated work rules and closely monitoring shifts that exceed 16 hours to reduce double-time payments.


“We welcome the comptroller’s assistance as we continue to fulfill our commitment to reduce overtime expenses,” said MTA spokesman Aaron Donovan, in an e-mail.