Iowa alcohol division accepts suggestions on overtime hours

Iowa Alcoholic Beverages Division has accepted auditors' recommendations for tracking breakage reports, strengthen employee time reporting and minimize overtime costs.

The recommendations were part of an audit by the state Auditor's Office during May 2010 and all recommendations have been accepted by the division, which is a part of the Department of Commerce.

The auditors recommended improvements in tracking employee work hours, including having truck drivers' time sheets approved by a supervisor and retaining log books for at least three years.

Breakage in the warehouse should be tracked electronically, auditors recommended, and warehouse employees should sign-off on any breakage. The auditors found that in May thre4e were three bottle valued at $42.24 that could not be traced to the breakage reports and another 43 bottles worth $342.69 could not be verified as correctly entered in the computer system.

Breakage was one function the division specifically asked auditors to address with recommendations for greater accuracy. At this time, an electronic reporting tool is not available, the division said, but is entering into a contract for a warehouse and inventory management system.

Noting an increase from 2,107 hours of overtime in 2007 to 3,107 in fiscal 2010, auditors recommended the division evaluate the use of overtime and look at alternatives. Some of the increase was due to remodeling in the warehouse, the division said. Other steps have been taken to minimize overtime.

Auditors also noted 11 employees were owed an additional $1,392 for overtime worked because of payroll discrepancies when employees were taking mandatory furloughs. The Auditor's Office recommended consulting with legal counsel to determine how to handle the underpayment. The division has identified the employees owed overtime and is preparing a claim for those employees.

The fill auditor's report can be found at

http://auditor.iowa.gov/specials/1060-2110-B0P1.pdf.