TAILIEUCHUNG - New Jersey Department of Education Performance Audit

From 2006 to 2010, total gross compensation at the Port Authority grew from $ million to approximately $, respectively. Of this amount, base salaries grew from $ million to $ million, a compounded annual growth rate of only . However, other amounts of compensation, (., “add‐on” compensation) such as pay associated with the vacation exchange program and certain longevity programs grew by compounded annual growth rates of and , respectively. Overtime, the largest percentage of “add‐on” compensation represents 23% of the total base pay for represented employees. Moreover, “add‐on” compensation and benefits for all active employees when combined and taken as a percentage of base salary is approximately 70%. These “add‐on” compensation costs are relatively rapid growing and tend to obfuscate actual total costs per employee being absorbed by the Port Authority. . | KPMG LLP New Jersey Department of Education Performance Audit Final Report August 2007 Vị AUDI ADVISORY Table of Contents Section Page No. I. Engagement Summary 4 II. Engagement Scope Approach 10 III. Current State Overview 19 IV. Desired State Overview 53 V. Findings Recommendations 59 VI. Appendices Appendix A - Organizational Chart 157 Appendix B - Job Activity Questionnaire Results 159 Appendix C - District Survey Results 234 Appendix D - Benchmarking Results 289 2007 KPMG LLP a . limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International a Swiss cooperative. All rights reserved. Printed in the . KPMG and the KPMG logo are registered trademarks of KPMG International a Swiss cooperative. 23177CHI 2 Section I Engagement .

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