Labor Department investigators found the Labor Department had spent $2,521,000 in fraud and waste and $3,823,000 on legal fees over the past two years.
The audit said the Labor department paid employees less than they were owed, but did not account for overtime or other benefits they could have received.
It also found that the Labor Office received about $500 million in taxpayer money for overtime and other benefits for employees in fiscal year 2018.
“The Office of the Inspector General has found that overtime and overtime pay are not fully accounted for in the Labor Departments payroll,” the audit said.
“Additionally, the Office has identified significant waste and abuse in the Office of Labor Standards Enforcement (OLSE) and Office of Personnel Management (OPM).”
The Labor Department has identified a wide range of problems with the OLSE and OPM that may result in overtime and compensation not being fully accounted to the Office, and has taken immediate actions to address them,” it added.
The Labor Department said the audit was completed in late November, and the department would publish its findings.