Audit Division

Audit Summary

Department of Personnel

State Payroll System

Report LA96-28

Results in Brief

Some payments for shift differential, shift differential overtime, and callback were not made in accordance with payroll laws and regulations due to differing agency interpretations. State payroll regulations need to be clarified in order to reduce confusion among state agencies as to what qualifies for shift differential and shift differential overtime. In addition, the issue of when to record callback or overtime needs to be clearly defined and spelled out in regulation because of the potential for abuse.

State agencies need to improve the review and approval of time code entries for shift differential, shift differential overtime, and callback on employee time sheets prior to submission to State Payroll for processing.

Principal Findings

1. Department of Personnel regulations relating to shift differential and callback pay need to be updated and clarified. The current regulations are not clear resulting in various interpretations by state agencies as to what qualifies for shift differential, shift differential overtime, and callback pay. (page 10)

2. Critical information missing from BTAs submitted to State Payroll for processing included the employee's work shift, the employee's regular scheduled days off, the time of day worked, the month and day worked, and the supervisor's signature indicating the time sheet was reviewed for accuracy. (page 13)

3. Late submission of BTAs has resulted in duplicate payments to state employees for callback pay. (page 16)