Chicago Police Department Overtime Controls Audit Follow-Up Inquiry

Executive Summary

The City of Chicago Office of Inspector General (OIG) has completed a follow-up to its October 2017 audit of the Chicago Police Department’s (CPD) overtime controls. Based on the Department’s responses, OIG concludes that, of the 13 corrective actions related to the audit findings, CPD has fully implemented 2, substantially implemented 2, partially implemented 7, and not implemented 2.

The purpose of the 2017 audit was to determine if CPD effectively managed regular-duty overtime to prevent waste and abuse. Our audit found that CPD’s operational controls did not adequately prevent unnecessary overtime, deter abuse of minimum time provisions, or ensure that overtime was paid in compliance with policies and procedures. We also found that CPD management controls did not adequately prevent officer fatigue, control costs, or detect and prevent fraud, waste, and abuse. Finally, OIG found that CPD directives related to timekeeping did not reflect current practice, did not provide adequate detail to ensure consistent application of Department policies, and did not include policies to prevent excessive overtime, prevent officer fatigue, or control costs.

Based on the results of the audit, OIG recommended that CPD,

1. work with the Office of Budget and Management (OBM) to implement an automated timekeeping system that includes the controls necessary to ensure that timekeeping records are accurate, verifiable, and complete;
2. immediately implement the necessary manual controls to prevent the operational errors and potential abuse described in the audit;
3. conduct a routine reconciliation between the data in the Department’s management reporting and payroll processing systems;
4. ensure that all CPD members, timekeepers, and supervisors are trained on policies related to timekeeping, and are following and/or enforcing these policies appropriately and consistently;
5. prioritize timekeeping oversight and set a “tone at the top” that emphasizes individual accountability for all CPD members;
6. establish clear expectations regarding unit management responsibilities related to overtime;
7. ensure that supervisors have the tools they need to monitor overtime, and require that they actively use such tools;
8. hold unit management accountable for excessive or unjustified overtime use;
9. ensure that all directives are included in its directives system, are up-to-date, and reflect actual practice;
10. routinely review directives to confirm that the documented policies conform with both CPD’s obligations under the current Collective Bargaining Agreements and the Department’s current processes;
11. ensure that all directives provide sufficient detail to promote consistent application across the Department;
12. train supervisors how to determine whether overtime is warranted; and
13. limit the number of hours officers may work in a given period, including secondary employment, as is already the practice in other jurisdictions.

In its response to the audit, CPD described corrective actions it would take regarding most audit recommendations, but disagreed with OIG’s recommendation that the Department limit the number of hours officers may work in a given period, including second jobs.