AJF Transportation Consultants, Inc., et al. - Page 23

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             the respective amounts of $98,670.65, $138,220.40, and $102,480                                      
             in 1988, 1989, and 1990, respectively.                                                               
                    Petitioners claim that Brittain's Report accurately computed                                  
             the number of hours attributable to the alleged casual labor by                                      
             comparing AJF's payroll figures to the billing invoices for                                          
             services rendered by AJF to J.C. Penney.  Brittain used the                                          
             billing invoices to determine the total number of manpower hours                                     
             AJF employees actually rendered to J.C. Penney.  She used AJF's                                      
             payroll records to determine the number of manpower hours                                            
             attributable to AJF employees as reflected on the payroll                                            
             records.  The Report attributed the difference between the                                           
             payroll and billing invoice figures to "casual labor".  For                                          
             example, the Report concludes that for the second quarter of 1988                                    
             the manpower hours attributable to casual labor totaled 2464.3                                       
             hours.  The Report derived this figure by subtracting 41,670.3                                       
             manpower hours shown on AFJ's payroll records from the manpower                                      
             hours of 44,134.6 shown on the invoices.                                                             
                    Brittain's Report is laced with flaws.  For purposes of                                       
             computing payroll manpower hours, the Report treated all                                             
             employees listed in the Report as drivers, even though they had                                      
             helpers who were also on the payroll.  The record indicates that                                     
             a delivery truck required two people: a driver and a helper.                                         








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