LIHU'E, Kaua'i — The short-handed Kaua'i Police Department has overspent its overtime budget by $550,000 and ended the 2005 fiscal year $322,000 in the red, the first time the county has ever experienced such a lapse, according to an audit by county Finance Director Mike Tressler.

Tressler, addressing the Kaua'i Police Commission yesterday afternoon, said that there was no evidence of fraud in the overtime accounts, but there was a serious lapse in fiscal procedures when the department's leadership failed to recognize an overtime crisis and failed to seek transfers to cover its shortfall.

"This has never happened in the history of the county," he said.

Tressler said his audit showed that many officers were being required to work far too many hours.

"I have a grave concern. It's a concern that we're burning out our employees," Tressler said yesterday. He said about one-quarter of the department's employees worked and were paid for $30,000 to $40,000 in overtime. Five employees got more than $40,000 and one was paid $57,000 for overtime work.

He and Police Chief K.C. Lum announced a series of tightened budgetary procedures to prevent a recurrence.

"We will step up the emphasis on managing payroll," Tressler said. Lum said he will institute all required financial controls.

Members of the public said that the use of all that overtime could be a good thing, since it appears to be yielding results.

"Crime is down and drug busts are up," said Glenn Mickens of Kapa'a. "With the police force being 21 officers short, it seems logical" that the remaining officers need to work additional hours.

The department has had a difficult time recruiting in a period of statewide low unemployment, accounting for multiple vacancies that could not be filled. Lum said he was unable to attract any applicants for guards in the county police cellblock, and was forced to use sworn officers working at time-and-a-half to staff the department's in-house jail.

Personnel shortages in the Patrol Division meant many officers needed to work overtime to keep beats covered. A new computerized records management system required training, which was not budgeted and needed to be done on overtime. And an active vice squad drug-enforcement program accounted for about a third of the unanticipated overtime, Lum said.

But the chief said he had expected to have enough money in unspent salaries to cover the costs. Tressler said Lum and members of the police commission were warned in e-mails and in person, and failed to heed warnings that they were spending faster than they should.

He said the department should have recognized the problem and should have asked the County Council and the Finance Department to arrange transfers of surplus funds from other county departments to cover the overrun.

Lots of blame was passed around — and accepted.

Andy Parks of Lawa'i argued it was the County Council's fault for not adequately funding overtime.

Tressler accepted responsibility for a lack of stiffer accounting protocols.

Police commissioner Leon Gonsalves said "this is the chief's responsibility."

And Chief Lum himself said he was at at fault.

Reach Jan TenBruggencate at jant@honoluluadvertiser.com.