My ethical dilemma:

My ethical dilemma: I work for the state government and we sign in every morning on a sign-in sheet that is broken up into the different times that the various positions come in (6:30am, 7am, 8am). At the designated time, a supervisor will come and use a red pen to underline the last name that signed in at that time, so that anyone that signs in after that is "Late." We call is being "redlined!" Now, my direct supervisor is off on Mondays (works a 4 day week), and one other supervisor does not come in until 8am, and another is often absent due to illness. There are a few people that take such advantage of this situation that it is criminal. If there is no redline, they sign in as normal, even if they came in 85 minutes late. If there is a redline, they will sign in and write down some fictional time that they pretend they came in at. These people are stealing from the state, sure as someone who steals transparent tape at christmastime. My problem is: 1. Hard to prove - my word against theirs. 2. The NARQ! tag - everyone hates a tattle tale, especially supervisors. 3. Retaliation - There is no anonymous way to complain about this. 4. I think my direct supervisor knows about some of this and turns a blind eye. What should I do?