The latest report from New Jersey's Office of the State Comptroller puts the microscope over a possible source of millions of unnecessarily-spent taxpayer dollars each year.

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Ingram Publishing, Thinkstock
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Looking at a small sample of local governments across the state, the OSC investigation spotted several that were doling out compensatory time and/or hefty overtime payouts to their high-level executive employees. According to the report, passage of a public ordinance is required beforehand, and that process includes public comment and a vote.

Some municipalities were following the rules; others were not. Towns mentioned in the report include Garfield, Paterson, Toms River and Wallington, among others.

"In a situation where towns are struggling to make ends meet, to reduce taxes, this is certainly an area that they can consider for savings because they are not required to pay their executives comp and overtime," said Marc Larkins, the state's acting comptroller.

In many instances, executives were approving their own overtime compensation.

Larkins noted the current laws are in place to ensure transparency.

The report recommends the offending governments obtain legal counsel to determine whether or not any unauthorized perks can be recovered.

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