Vermont Department of Corrections
Audit Title
Performance and Compliance Audit: Overtime Approvals and Cost Control within the Vermont Department of Corrections (DOC)
Objective:
To determine whether the Vermont Department of Corrections (DOC) has established and implemented an efficient and compliant process for authorizing, documenting, and managing employee overtime, and to evaluate whether management exercises adequate oversight to control costs and ensure appropriate staffing levels.
Scope:
Review the DOC's policies, procedures, and payroll records concerning overtime for custodial and medical staff at two specific correctional facilities for a focused six-month period (e.g., the first half of the most recent fiscal year). Review a statistically valid sample of overtime transactions to test compliance with labor agreements and state policy, and analyze management reports related to overtime usage and vacancy rates.
Key Audit Areas and Procedures
Compliance with Authorization and Documentation:
Test the sampled overtime transactions to confirm that all payments were pre-authorized in writing (or electronically) by the required supervisory level, and that the authorization cited the specific justification (e.g., mandatory post coverage, transport duty, training) as required by DOC policy or union contract.
Accuracy of Payment and Adherence to Policy:
Examine the sampled transactions to verify the correct overtime rate was applied and the total payment amount was accurately calculated according to state payroll rules and applicable bargaining agreements. Test for any evidence of improper "double-dipping" (e.g., claiming overtime and sick/annual leave for the same period).
Efficiency and Cost-Effectiveness of Overtime Use:
Analyze overtime data trends to identify patterns of excessive overtime by specific employees, posts, or shifts. Determine if overtime is being used to cover chronic vacancies and if management has performed cost-benefit analyses contrasting overtime cost versus the cost of hiring and training permanent staff.
Management Oversight and Control:
Evaluate the nature and frequency of management review of overtime costs. Assess whether the facility and central office leadership systematically use overtime data to identify and implement corrective actions regarding staffing needs, scheduling inefficiencies, or supervisory practices.
Expected Value of the Audit:
This audit provides accountability and assurance that a significant, recurring portion of the DOC budget is being managed responsibly and in compliance with state law and labor contracts. It will identify systemic control weaknesses that could lead to waste or fraud and quantify the cost impact of relying on excessive overtime. Findings will result in concrete, quantifiable recommendations to improve internal controls, strengthen supervisory review, and achieve significant, long-term cost savings for the state.