Advisory Regarding City Employee Indebtedness Program
Summary
The Inspector General’s Office (IGO) examined the City’s and certain sister agencies’ employee indebtedness disciplinary procedures and recovery processes.
Executive Summary
Over the last two decades, the City periodically has launched various initiatives to reduce or eliminate employee indebtedness (EI)—the overdue debt City and sister agency employees owe
to the City. These initiatives include implementing personnel rules that provide for the discipline of City employees with overdue City debt, enacting ordinances that allow the City to garnish the wages of City and sister agency employees with overdue City debt, and entering into an intergovernmental agreement with the State Comptroller’s Office to collect overdue debts owed
to the City. In October 2011 the City announced an initiative to increase enforcement activities at City departments and sister agencies, at a time when citywide EI was nearly $3.0 million.1 Despite these efforts, the City’s EI balance totaled over $3.2 million as of October 31, 2012.
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