oversight

Disbursing Transactions, Naval Ammunition Depot Crane, Indiana

Published by the Government Accountability Office on 1971-11-02.

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

              UNI ,'ED STATES GENERAL ACCOUNTING OFFICE
                             REGIONAL OFFICE
                       2006 WASHINGTON BOULEVARD BUILDING
                                  234 STATE STREET
                           DETROIT, MICHIGAN    48226


                                                        NqV 2 1971


Captain J. C. Donaie
CGo--i.mldig Officer
Naval Anrmuaitio   Depot
Crane, Indiina

Dear Captain Donahue:

     We hae exadined selected trwactinas in the 1970 financial
returns of the depot to evaluate the quality of your disburing
operations. In our tasts at the Navy Flnaei   Center, Cleve1lad,
ve reviewed 178 military pay records id 164 rlitary    ad civilian
travel vouehers. Ue found a large number of errors--94 in the
342 records emaied.

      Seventy-two errors totaling $1,195 resulted in over and under-
payments o£ pay end travel. Twelve of thee errors, totaling $125,
were previously identified by the whainistrative e=ainr rs at the
Great Lakes Navy ellional Finoace Center. The other 22 error; we
found involved leave %counting (64 days) and tax reporting. These
could e-rentually result in lossese to the Govrarnamt or to the ser-
vi.cemen.  The appendix umarizes our findins by error type, frequency,
and amount.

     At the depot we inquired into the caous of the errors and
reviewed ott ;r aspects of your finaocital mrsanmmt system. Our
obsarvations and findings are presented helow.




     Pay md travel errors were priyarily the result of:

      -- failure to verify payroll postinge,

      -- unfilliarity with or mdsAlication of certaira etitlaent
         rellatioen, and

      -- l1ck of prepafymnt review.
      ?.rp& qh I.O40l1 ,  -537e, Qw "O4     of the ? !qairem      smitt
                  r    Iffstio   of psyroll past&W.     of  the 6
Verlfieatio ai
payrolls procs  ed fre Jsa%4&    thbouhalovheber L'970, osly 12 nre
                                                            the
                          wvrificati5., Failure to dke bIse9.      Freview
,ipssd to eidemces                   tig  errors. totalin
roeulted in at least tw payroll
     gafamiliarity with or Miadplicadti      of eatitleomt remlaItmdS
accounted for errors s&   as  sgrostlig qurters   allowsuneo in Iteve
                                                   allownce.    To amid
sottleumts to oervi mont eliglble for much    tralniag  sesslns be hold
these tyP. of  etors,  ve sgest     periodic
to apldai troublesaome sectiao   of the IpY ead tre1 reLgAetiees.

     M1ny of the errors we ideltifted-*" ch as usilg the wrIng amber
of days to cpepte leave settlements-cald hwe booen avoided     had the
trafssctite    bemo reviewed b*fore payment.             tPrepomont
                                                             are
                                                       revimts
essential   to effectively control disbursaests.



     Field i.cbtaing,MIual, EaVSU Publication 467, roeires thst
sales invoices ad other pFroeve fcr          evidencing irLst        fund
  paedituree be subeitted to the disbursing officer as          support   for
replaiisiment. These were being retained by         the  Iprest    hund  cashier.
For exza le, the saleas Jo,1   .s eapplicable to purchbses listed On
   DC Itroa 4215/2 (lupst Fund CI) Purchases) ere not saubitted with
Standard IFomn 1129   en the fund wa replnisthed. Without proper
pamortlia documentation, neither the disbarsing              io     o'r  Offire,
                                                                     uricr,
                                          imprest    funds   are being   usod
nor nymee else ca determn'e hether
properly.
      in a reporr issued is JuIe 1971, the avaL Audit Service sggested
that more mngtemnt attention be iven to jutproviSt         4w oll purchase
 procedures, The Auttt Ser e         estimateC that  mn     l savings of
$77,0O0 could be realized et   tho depot    by  using   bidaket   purchose
agroemnts or iopreet i,.msrather than         purchse    orders   or by pircas-
 Wg throu4h CGoverment suply surce.
      We aree with the rcmm4ations        dote by hoe Audit SerLice an
 are limiting our    uetiinO to tbhe c   point   discussed above--
                                                          to the di&burs-
 tulrsct fund suPPorting doamldt should be sublitted
                                                         .ettums sent
 Ltg officer for revir v and included 1 the financil
 to our Office.

                                                                       -2-
      U lestl      prs.   rns Wis  etole o"w
                                           iire  o     mm*ePM
                                                           s to
flurrp.   thes elstviit eLbwg tb the @tfIam.~I~    OI~ Ur i~s
estimate     ~1ian hul In 1954. IZafults mo a Soinm Iamcm. mt
the Use5      elintvlaity is do Post 15 yews tateat thid ·
is -et remlistic. ?wth.        y   iyom
                                    um"      wriw supervisor eaU us
thdet m. ur bhm rulemed saIettm activites at         0 dput. we
sommot ON&k rowto U     be ine poisdlaslly.


      Vs dismarsed the Oevet      tatre ith year staff sad 0b0 agsmsd
to tik cerretve settem.        V. would #Vprset. year cinmt. an

      We ra     mnimcodp4of this letter to the Comptvolle*f doe
Kvy; the Wresstr,   Nmwy Hilttmty V Wftoe;  d   COmitaM   Offisaw,
Great L cks Dasy Rigismal Flumam Coatwr; d the Direeistw Ihileduiphis
Veail Area Aw1t Servies.

                                     iuerrely vealr,

                                        -~'.   TT.1 imm
                                      I3.
                                       C.      Room
                                     N.w          Mmsvsu

  SAcPMA
    lear
  Appsmdtx
                       V. S.         mAL ACCOMlIomF

                               a~mory tIJ~OAL 0TIt

                                  mm. hML
                                       mm.M




CnPutatxio      - Pay, ell*oWaIc , FICA tax             S     $     3.10   $ 41.43
:ObaLhly celMag allo*w        - wrus- rate              2                     6.02
  u.artes alleawce - wrotgs rate                        1                    25.00
   tL.r ratiros   tipmrlmy credited                     4          24.74      1.39
LA      m_ lve#ae SttlemeA t - aW     rMbet
   of daye                                              1                   196.42
Pyroll paysnt not pastent                                          51.00
 .Au    utm iea*s quarters allow=e< - not
   eligible                                             1          17.50
Commuted rat tons t authortsed during
  leave                                                 1         _boo2
                                                                    9-,
                         tsbtoa'li                     16         106.07   $270.26
          MMMflflWT      L.
                        uLLOwS JANUARAIY 1 !RROM3ItMEMUCE1   3,    l7I


  urong m*uber of dr*u                                  3          55.0)      3.0'.4
  I-eeaes lae* status not considered                    1          20.83
    tta
      P            ettleaent
 Wrong umrber of daye                                   1          65.10
 PCarters alowanece - not eltigble                      2          13.75


 Payroll pylment not posted                             I         108.00
 Coqeutation - allowances                               2          13.13     6.60
  Pay - vrong rate                                      1                    2,10
 Casted rations Sot authoriWsd                          1         26.41
    duriag leave
                         Subtotal                                           12.64
               ofrt8y
Isntrrectly paid                           allam        ae          2               4.6d                5.1
                                ilP                                 2          $    4           $       5.12
  dim insoetd of                                                    1              121.02
qp.Vdlets set apprved as eliibL
Uuathbortsed ri'aqbtrsesmt for botel                                                 3.00
 bill
Xaeorrect ceiuptat                    of curicy coyection            I               I.BI
Zncorrect *nt ttlt                  t poi.te - depenlents            I
                                        ubtalal                                      $

                        RuaLI=AU        Tmom11    - MorXA    AOM!TIOU~AL_

PEr dirm

  Failute to d4met for Gurvemnr                     t
      eals                                                           4         $ 28.30
  G-eromlmC mot. de[ductd at vrown                                                              $        1.60
    rate                                                                 t
                                                                     2              1i.15
  in     excess of conotructive travl tiu                                           44.10               54.00
  wrong rate                                                         6
                                                                     2               2.95
  incorrect pertods - qmurters o:,tation



   lTvorryet di tIe                                                      1           1.48
   loctrrect cmatattle                   of msoetry
                                                                         14.                6
        atlomace                                                                                         3,30
           tery a*lla           Ce aot pard                              1
                                    m                                                   l
       oTells not all
                                        Subtota                          9,        t I9"         $2

                              MLIA Y TAR. - -ISEArf c n__            SvICXC

                                s                                        2                          S    4.08
         Fscerrwet ditstnoe
 Incorrect eutItlmfnt paimts                                             1         $106.66
                      Subtotal                                       TTi6                                 .
                                                                         APPUOlX
                                                                         Page 3




        error
TV'. of 91M                                               £WLdS                £!.E!Z



  vrog irate - aboard atrcraft over                 2
       ara                                          2           1.75
  ,uswg rate                                        I            1.2S
  Travel le,., tha 2'6 hbot  - incorrect
     quart,.r. aem tatio n                          1            6.25
  NCt eal11ile - terminal vithiu
     50 rlea                                        1            6.25
  Iotr    tboroted ty oradrs                        1            6.25
  Wrong dertrwe time                                1            6.25



  Incorrect  i)afW                                  2            3.60           $     3.20
  Limited to actual uileage                         1           23.40



  Taxi to/fro tmorary duty stat itn
    not allowable                                   4           12.75
  Taxi vs. airliM liarmisa - incorrect
     ntitlemint                                      1            .25a
  PeraoclI insurance not aleowale1                   1           61.0
                      subtotal                      1-      $    1*              $3

                     Total -   mtary errors         72          836..U              338,71


                                -i_AVK MCOUT'ING


        :."-    of                                 &gbe    Qvert4                t4uderntata

Blanrces coawpatd incorrectly                        8     40 1/2 days           16 !/2 days
Ditplceat earse                                      1                            4 days
Delary o- roste ineorrectly cbard                                d
                  Total - lea  errors                       1              ,                 U
                                                     Page 4




Type of           prror

Checkage for basic pay (excess blea)
   incorrectly included as taxable Income       2
Checkage for basic pay (excess leve)
   ircorrfetly inclesd as FICA vtages           I
incorrect coumiutation of taxable incae         1
Incorrect computation of FICA taxes             I
Incorrect computattio of tax vithheld           1
 wLup sum lcave basic pay incorrectly
   excluded from taxable ncome                  1
DIL ability .everance pay incorrctly
   included as trable   ietlne                   1
Sea pay checkage incorrectly Lncluded as
   taxable Lncoae                                1
Bai c pay earned in a combat soane ncorrectly
    inclided as taxable income                   1

                 Total - tax errors             10

                 Total - all   errors           94