Tacoma paid employees thousands for hours they never worked, audit says
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- Tacoma paid $17,603 to two employees for hours not worked, audit finds
- Audit cites lack of internal controls in Tacoma Public Utilities and Public Works
- City initiated investigations, updated policies and ended ties with offenders
The City of Tacoma paid two employees a total of $17,603 for hours they never worked, according to a letter the city received from the state auditor’s office earlier this month.
According to the letter, sent July 15, discrepancies were found in a 2023 accountability audit. The Office of the Washington State Auditor found the city of Tacoma “did not have adequate internal controls to ensure employees were not paid for time not worked,” specifically in the Tacoma Public Utilities and Public Works department.
In 2023 and 2024, the city was found to have paid an engineering technician in the Public Works Transportation Division $13,350 for hours not worked and also paid $4,253 to an engineering technician in the TPU Power Generation Division for hours not worked, according to the audit.
The audit found “Specifically, the Tacoma Public Utilities and Public Works did not have controls in place to actively monitor employee activity and ensure adequate supervisory review and approval processes to verify employees are working during the times submitted for payment.”
The auditor’s office recommended the city provide adequate training to supervisors “to ensure proper review of employee activity before approving hours worked,” update its payroll policy “to include supervisory review and approval processes to verify employees are working during the times they documented on their timesheets,” and provide supervisors resources and procedures to review for time actually worked.
City spokesperson Maria Lee said Tuesday the city identified and self-reported these payroll discrepancies to the state auditor’s office and upon discovering the issues “launched thorough internal investigations into each case.”
Lee said the individuals who were paid for hours not worked are no longer employed by the city and in another case the investigation cleared another employee of suspected time theft.
Overall, the 2023 Accountability audit of the city of Tacoma was positive, Lee said. The auditors determined the city “complied in all material respects and had control over safeguarding of public resources,” she said.
Lee said the city is already implementing state auditor office’s recommended updates, including additional training for supervisors, updating payroll policies with clearer guidance and “refining and strengthening our internal controls to protect public funds and maintain public trust.”
This story was originally published July 30, 2025 at 11:29 AM.
