Investigation Found Improper OT Payments in Providence, Guess What Happened Next?

Investigation Found Improper OT Payments in Providence, Guess What Happened Next?

In March of 2025, GoLocal published a story about the report conducted by the City of Providence’s Internal Auditor who had uncovered tens of thousands of dollars of improper payments to city employees.

 

The report, which was conducted by Gina Costa, the City of Providence's Internal Auditor, was forwarded to members of the Providence City Council.

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The report finds that dozens of employees who are not eligible for overtime were paid more than $145,000 under Mayor Brett Smiley’s administration, and that some of these improper payments date back to the administration of former Mayor Jorge Elorza. 

 

The report was damning.

 

Internal Auditor Analysis

According to Costa's report, she wrote, “My office was asked to investigate a nonunion employee to determine if the amount of overtime that the employee was receiving was allowable under the Code of Ordinances, Section 17-59 Overtime Pay. While conducting research related to the request, it was discovered that there are many nonunion employees receiving overtime who are not eligible under said code.”

 

“The scope of the audit is from January 1, 2022, through February 28, 2025. For this time period, sixteen (16) nonunion employees received $427,575 for various types of overtime. Only five (5) of the sixteen (16) properly received overtime, for a total amount of $282,512. Eleven (11) were in violation and collected $145,064 in overtime,” states the internal auditor’s report.

 

The report did not name the names of the individuals, but it does identify those who improperly received the payments by title and the amount each received.

 

 

Smiley’s Response — Nothing

GoLocal followed up with Smiley’s office this week to find out how much of the funds were recouped.

 

“The City did not recoup funds paid to the employees who worked overtime hours,” said Smiley’s communications director, Josh Estrella.

 

GoLocal followed up with, “Why did the Smiley administration not recoup any of the OT deemed illegal by the internal auditor?”

 

Smiley’s office did not respond.

 

The Mayor has raised taxes in two of the three years he has been in office.