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AIMD-00-309R 1 (2000-09-13)

handle is hein.gao/gaobaallv0001 and id is 1 raw text is: t :GAO Accountability IIntegrity * eliability United States General Accounting Office Accounting and Information Washington, DC 20548 Management Division B-286133 September 13, 2000 The Honorable Ernest J. Istook, Jr. Chairman, Subcommittee on the District of Columbia Committee on Appropriations House of Representatives Subject: District of Columbia: Funding for Certain Union Employee Pay Bonuses Dear Mr. Chairman: You asked us to determine the funding source for $9.9 million in bonuses paid to certain District union employees and provide a chronology of key events related to the bonus payment. You also asked us to determine the District's authority to reprogram funds to the Tobacco Settlement Fund (TSF) from other appropriation accounts. On August 10, 2000, using the slides included in the enclosure to this letter, we briefed the Subcommittee staff on the results of our work. To provide the information you requested and address your specific questions, we (1) interviewed officials at the District of Columbia Financial Responsibility and Management Assistance Authority (the Authority), Office of the Mayor, and Office of the Chief Financial Officer (CFO), (2) reviewed and analyzed documents, including the labor union agreement with the Mayor, funding plans, and fiscal impact statements, and (3) sought and received a written response to a legal question regarding reprogramming of funds. We conducted our work from February 2000 through July 2000 in accordance with generally accepted government auditing standards. We did not independently verify underlying data. We obtained oral comments on a draft of the slides from District officials, who stated that they agreed with the contents. Results in Brief The District reported a surplus of about $445 million for fiscal year 1998, thus triggering the need to reopen negotiations about bonus compensation with certain union employees, based on a 1998 agreement. Negotiations took place and an agreement was reached during November 1999. The bonus payment of $9.9 million applied to 5,746 District union employees in two compensation plans represented by several union organizations. The GAO/AIMD-00-309R District Pay Bonuses

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