Latest news with #MichaelHouston
Yahoo
04-04-2025
- Business
- Yahoo
Oakland's Kids First! children's fund owes city $7.2 million, audit finds
(KRON) — The Oakland Kids First! children's fund owes the City of Oakland's general fund more than $7.2 million due to continuous errors committed by the City of Oakland's Finance Department between 2018 and 2024, an audit conducted by the City Auditor shows. The City of Oakland exceeded spending requirements by spending about $401 million on children and youth services during the six-year period, or an average of $67 million per year, the audit shows. The City of Oakland Human Services Department manages the Kids First! fund by awarding grants to nonprofits, the Oakland Unified School District and other agencies that provide children and youth programs. Windsor forklift operator crushed to death by pallet of wine Thursday afternoon According to the Office of the City Auditor, the city's Finance Department did not always deposit the correct amount into the Kids First! fund during this period. These incorrect payments caused the city to spend $7,270,352 more than it was supposed to on the fund. 'For example, for one year, instead of correcting an overpayment from the [general purpose fund] to the Kids First! Fund, Finance mistakenly transferred an amount nearly equal to the overpayment to the Kids First! fund, giving the Kids First! fund nearly double the amount it was owed by the Act, at the expense of the GPF,' the Office of the City Auditor said. The City Auditor recommended that the Finance Department address the budget issue by making a one-time adjustment of $3.1 million from the Kids First! Fund for transfer errors committed in the 2019-2020 fiscal year, and an adjustment of $4.2 million for overpayment during the 2023-24 fiscal year. The City Auditor also recommended that the Finance Department adopt formal guidance for adjusting and calculating spending on eligible expenses. This was the second audit recommending that Oakland's Finance Department develop policies and procedures for the Kids First! Fund. Chevron to cut 600 jobs at former HQ in San Ramon Oakland City Auditor Michael Houston said in a statement that ongoing budget cuts may affect his office's ability to audit city programs and services in the future. 'I want the City Auditor's Office to regularly conduct audits of the Kids First! Fund and the other 10 audits that the city charter and city ordinances require us to conduct on a recurring basis, as well as our charter responsibility to conduct operational audits of areas that present the greatest risk to the city and are most important to city residents, businesses, and leaders,' Houston said.' Houston added that: 'unfortunately, the City Auditor's Office currently has several frozen positions and is challenged to fulfill its city charter-mandated responsibilities.' 'Resourcing the City Auditor's Office so it can fulfill its charter-mandated responsibilities ultimately helps us to achieve our goal of identifying ways that the city can perform more efficiently and effectively for Oakland residents and businesses, reduce expenses, and safeguard city assets,' he said. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
07-03-2025
- Business
- Yahoo
This California city spent $1.7M on unauthorized overtime as it marched toward a massive $280M budget shortfall
Unauthorized overtime payments cost the City of Oakland nearly $1.7 million over a period of several years, the city's auditor reported. Meanwhile, the California city faces an estimated budget shortfall of $280 million over the next two years, according to CBS News Bay Area. An investigation was kicked off following a whistleblower complaint in July 2023. It was found, between January 2018 and May 2024, the city overpaid 526 employees across two departments due to an incorrect formula in the payroll system. I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 5 of the easiest ways you can catch up (and fast) Home prices in America could fly through the roof in 2025 — here's the big reason why and how to take full advantage (with as little as $10) Americans with upside-down car loans owe more money than ever before — and drivers can't keep up. Here are 3 ways to cut your monthly costs ASAP "This issue of excessive overtime pay warrants the city's immediate attention because taxpayers have essentially been incurring significant costs that were never approved," City Auditor Michael Houston said in a news release Feb. 20. Here's what the situation means for taxpayers. Houston added the overpayments are especially troubling due to current budget shortfalls, which have prompted the city to look "under couch cushions for spare coins." Lifelong Oakland resident Dion Baker says it's hard to hear about years of overspending while the city lays off workers and slashes public safety spending. "A bit of frustration and a bit of sadness because trust for leadership in general, I'd say, is a little low," he shared with CBS News Bay Area. Read more: Jamie Dimon issues a warning about the US stock market — says prices are 'kind of inflated.' Crashproof your portfolio with these 3 rock-solid strategies The city has also cut off millions in funding to community organizations who provide social services to those in need, according to the local broadcaster. "What I read and see on the TV, what's going on right now, people like me, I'm scared to death," John Hutchinson told CBS News Bay Area. The 88-year-old resident is homebound and says he relies on Meals on Wheels not only to feed himself but for social interaction. Interim Oakland Mayor Kevin Jenkins vowed to get to the bottom of the situation. "What I'm going to do is have a talk with the auditor and see what the best course of action is moving forward," Jenkins told reporters. There's concern the overpayment discovery may simply be the tip of the iceberg. Houston fears even more excessive overtime pay might be found outside of the two departments and the specified time frame named in the report. City officials were unable to explain the nature of the incorrect payment formulas, the report says. Houston recommended city officials review overtime formulas for all employees. And the money itself? "I don't know if we can recoup the money or not," Oakland Public Works Director Josh Rowan told CBS News Bay Area. "But I think the bigger issue is the perception damage." One dozen eggs in America now costs a record high of $4.95 — here are 3 simple ways to inflation-proof your retirement portfolio Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Protect your retirement savings with these 5 essential money moves — most of which you can complete in just minutes This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
CBS News
21-02-2025
- Business
- CBS News
Oakland city auditor finds payroll system problem; unauthorized overtime payments
Oakland spent nearly $1.7 million on unauthorized overtime in two departments during a period of several years due to a payroll system problem, according to a recent city auditor's report. From at least January 2018 to May 2024, Oakland overpaid 158 employees in the city's Department of Transportation and 368 employees in Public Works because its payroll system was using "a method for calculating overtime that differs from what the Fair Labor Standards Act requires," according to City Auditor Michael Houston. The Fair Labor Standards Act sets federal requirements for minimum wage, overtime pay, record keeping and child labor standards in both the public and private sectors. Cities can pay more than what the federal rules require, but Houston said he found no evidence that Oakland ever authorized such payments. "This issue of excessive overtime pay warrants the city's immediate attention because taxpayers have essentially been incurring significant costs that were never approved," Houston said. "I implore the City Administration to ensure that city employees are paid no more and no less than authoritative regulations and agreements require. I will watch closely how the City Administration works to rectify this issue." Spokespeople for City Administrator Jestin Johnson and Interim Mayor Kevin Jenkins didn't immediately respond to requests for comment. The Oakland Finance Department oversees the city's Payroll Division, which is responsible for payroll processing, but officials in those offices were unable to explain the overpayments or pinpoint exactly how long they've been happening, according to the report. Officials in the city's Human Resources Management Department and the City Attorney's Office were similarly baffled. Houston said the overpayments are particularly troubling in light of the city's ongoing and massive budget shortfalls -- estimated at $280 million over the next two years -- which have prompted city leaders to look "under couch cushions for spare coins," institute large-scale layoffs and significantly cut services. He also noted that the problem might be much larger and more expensive than he was able to identify since he only examined overtime spending in two departments. In his report, Houston makes a number of recommendations, including that city officials conduct a review of overtime formulas for all employees, adopt overtime formulas that don't exceed federal guidelines and make those formulas publicly available, consult with the City Attorney's Office to identify how to address past payments and discuss the report's findings at a public meeting. Houston said his office was alerted to the payroll problem because someone used the auditor's anonymous whistleblower hotline to report their suspicions in July of 2023. "Without the tip, we may not have become aware of this issue that is significantly costing the city," Houston said. People can read the full report at .
