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City Auditor’s Office makes recommendations to improve timeliness of merit pay increases for employees

Post Date:09/03/2019 9:40 AM

CONTACT: Douglas Jones, City Auditor, (816) 513-3300

The City Auditor’s Office released an audit on the causes and accuracy of retroactive pay adjustments.  A retroactive pay adjustment is a lump-sum payment made to an employee to make up for earned but unpaid wages.
The audit found that about 2,800 of the nearly 3,800 retroactive pay adjustments in the last three fiscal years were due to management’s failure to conduct employees’ annual performance appraisals timely.  Most of the remaining retroactive pay adjustments were the result of negotiated retroactive labor agreement provisions.
The audit also found that retroactive pay adjustments did not always accurately reflect the dollar amount that employees were due.  The city’s payroll system does not calculate retroactive pay adjustments.  Although the adjustments are done manually and can be complex, the city does not have written instructions on how to do them.  In addition, not all adjustments are checked by another person to verify their accuracy.
The audit includes recommendations to ensure city employees receive merit pay increases on time and improve the accuracy of wages paid to employees.  Management agreed with the recommendations.
View the full report or highlights online.
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