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
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)