oversight

Review of Civilian Pay, Letterman General Hospital, San Francisco

Published by the Government Accountability Office on 1971-03-16.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

              UNITED STATES GENERAL AC~~UNTING OFFICE
                                   REGIONAL OFFICE
                    143 FEDERAL    OFFICE    BUILDING    Jo FULTON    STREET

                        SAN FRANCISCO,           CALIFORNIA          94102




Commanding General
Letterman General Hospital
Presidio  of San Francisco,                 Californra               94129

Dear Sir

       We have completed a review of clvlllan   pay and related matters
at Letterman General Hospztal,    San Franczsco, California.    This
review,   completed in January 1971, was made pursuant to the Budget
and Accounting Act, 1921 (31 U.S.C. 53), and the Accounting and
Audltrng Act of 1950 (31 U.S.C. 67).

        Our review covered (1) Internal              Controls,     (2) Internal      Review,
 (3) Within-grade        Increases,     (4) Salary Act of 1970, (5) Coordinated
Federal Wage System, and (6) Severance Pay. The primary purpose
of the review was to provide             information      on Defense-wide       adminls-
tratlon      of civilian     pay ad all'owanch.           Employee accounts were
 first    selected on a statistical           sample basis.        Errors disclosed       in
the sample c~lll be combined-tith              those-o* o&her rnstallations
reviewed and the results            consrdered     for a statistrcal        proJection
 for a Defense--de          report.    We have not arrived          at an error rate
for Letterman General Hospital              since our sample at any one
installation       is too small to proJect.            We did, however, expand our
review at your installataon            by selecting       addit,lonal    records on a
Judgment sample basis,

       Our review indicated      that the procedbres,          practices,     and
Internal   controls    for admlnistemng        civflian     payrolls     were
generally    adequate.     We did, however, note a number of minor
dgscrepancies     and internal     control weaknesses which were discussed
wrth appropriate     members at the working level and surumari?ed at
an exit conference with members of your staff as well as with
members of the Civilian        Personnel Office,        Presldlo     of San Francisco
on February 4, 1971. Corrective           action has been either promised
or taken except as noted on Items llsted below

        1. Overpayments were made to 31 nurses when Clvilran  Payroll
computed the Salary Act of 1970 retroactive    pay. The overpayments
totaled    about $757.                       c 2




                      50TH        ANNIVERSARY             1921-       1971
Commanding General,    Letterman
  General Hospital                       -2.




       2, Overpayments were made to 31 nurses because Civillan     Payroll
did not deduct Civil   Service retirement on retroactive   pay due
underthe Salary Act of 1970. The overpayments      totaled about $4a0

       3. The Civilian      Payroll Office has not provided       the ADP
Master Employee Record        File with "date of last grade change" for
many employees.      This   resulted   in Data Processing preparing
documents monthly for       employees not entitled     to a withln-grade
increase.

        4. The Civilian   Payroll Office has not provided         the ADP
Master Employee Record Frle with "leave without pay" data for
those employees whose grades have remained the same since January 3,
1970. This data is used by Data Processing in computing the
effective    date of the within-grade     increases.    Currently    it is
necessary to review two or more leave records for employees whose
w$thin-grade     waiting period involves     periods prior to January 3,
1970. Finance and Accounting,         and Data Prgcesslng officials       have
agreed to look into this matter further.

      5. Data Processing prepared wlthxn-grade  documents monthly
for temporary General Schedule employees even though such employees
were not entitled  to a within-grade increase.

      6. Data Processing was preparing   within-grade Increase documents
but leaving  the effectxve date of the increase and the waiting
period ending date blank.

        7. Four within-grade Increases were granted one pay period
late due to errors in computing the waiting period.    The underpayments
totaled    about $46.

       8, The Salary Act of 1970 required    adJustments to the salary
rates of all General Schedule employees,      However, Civilian
Personnel has not adjusted the salary rates of nine such employees,
The nine employees were changed to a lower grade (Wage Board to
General Schedule) on April 12, 1970, and were allowed to retain
their higher wage board rate.    The Salary Act of 1970 as jmplemented
by section 531,205 of the CSC regulations     and as analyzed by FPM
letter   531-39, dated April 28, 1970, provided    that all general
schedule employees on the rolls April 15, 1970, or who had died or
Commanding General,        Letterman
   General Hospital                          -3-




retired      since   the effective  date of the act would have their
annual      salary   adJusted upward.

        We were informed by the Chief Technical           Service Branch,
Civilian     Personnel Office     that these employees were not entitled
to a salary rate adJustment because of Section II, paragraph 3 of
DA Civilian      Personnel Circular     No. 4, dated April 17, 1970.
Rowever, we believe         that above paragraph is not applicable,
because    it applies only to employees receiving           saved pay in excess
of the maximum rate prior to the effective             date of the increase.
We were informed by Crvilian          Personnel officials       that after our
report is received        the question whether these employees are
entitled     to a pay increase would be submitted through command
channels to the Comptroller          General for a decision.

          As of January   2, 1971, the amount in question           totaled    about
$3,400,

       9.    The Internal    Review Branch, Comptroller    has not reviewed
the civilian     pay area since 1967 when its review covered the period
of July 1, 1965, through December 31, 1966. We were informed
that the pay area has not been covered because (1) the auditor's
position     was vacant for six months prior    to March 1969, and
(2)the auditor's        time has been devoted to reviewing    numerous
nonappropriated       fund activities.

        Management has the basic responsibility             for establishing        and
maintaining    systems of accounting           and internal    controls    which
includes internal       review.     Internal     review provides      management with
means of more effective         control    over funds, property         and other
assets for which the Commander is responsible.                  Appropriate      internal
controls,which     include internal         review,serve    to minimize payroll
errors.

      We believe      that Hospital    offlcrals    should consider strengthening
the internal     review function     in line with the heavy work load
assigned to the current       staff.       This could be done by a redistri-
bution of work load or, If warranted,            by obtaining   authorization
for additional      staff.
Commandzng General,    Letterman
   General Hospital                      -40




      We believe    the discrepancres  and internal  controls  weaknesses
discussed above     in items 1 through 9 illustrate   the need for
closer  supervision    and continuing  review of work performed    at the
working level.



       We would appreciate       being advised of the actions taken or
planned on the matters discussed in this report,             We wish to
acknowledge the cooperation          and courtesies  extended to our
representatives     during    the review.     A copy of this report  is
being    sent to the District       Manager, Western Mstrxct,    U.S. Army
Audit Agency.

                                      Very truly     yours,



                                     <f&A
                                       &g&al       Manager