Unauthorized overtime costs Postal Service $717 million

In the past two year, the U.S. Postal Service spent more than $717 million on unauthorized overtime pay. An audit by the agency's inspector general found that the Postal Service was not properly monitoring and enforcing payroll policies.

The investigation revealed that some post offices and mail processing plants had lax control over time cards and in some cases managers failed to check overtime employee attendance records. Field operations employees worked approximately 1.2 billion hours in fiscal year 2010, which cost the USPS $294 million. In fiscal year 2011, workers accumulated 1.1  billion hours worked that costs the agency $423 million.

In fiscal year 2011, the USPS lost $5.1 billion. The mismanagement of time and attendance has left regulators wondering if the agency can reduce costs on its own, said Ali Ahmad, spokesman for the House Oversight and Government Reform Committee as reported by Government Executive.

"Postal Service policy states that supervisors are responsible for controlling employee access to timecards," the report stated. "They are required to take all necessary action to restrict employees’ access to the timecards before their scheduled tour begins and make certain employees clock in and out according to their assigned schedules."