oversight

Audit of Civilian Payrolls at Hickam Air Force Base

Published by the Government Accountability Office on 1971-12-09.

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

                                                            DEC 9   1971

ConQlander
'lacific Air Forces BRae Com:mand                          60
15th Aii IBase tng
hiickam Air Force      rase,   ilawaii   96553

Attention;:      Comptroller

Dear Sir:

       We have completed our : dit of civilian pryrolls at Ilickam Air
Forco Bals 7 JIaaii. Of the 2,911 civilians paid by the Civilian
Payroll O-ice, a random Eamr,.o of lC0 employees was selacted for review.
ยท ,'ttention%as focused on those accountn, tith permanent pay chanes durlnnj
the period October 18, 1970 through   l. ctober 16, 19T1. Our review: included
an   oxamination of the  accounting  and  internal controls used to ensure
that   payroll functions  are dischar'gcd  correctly and in compliance with
thle requirements of applicabtle laws and regulations.

        The individual pay and allo:oance transactions examined were
  cnerally handled in a satlilcctcory            uannor.   The procedures and control:;
to ensure proper within-gra!tc i ncrcaoaat,           other permanent changes,
severonce paymants, and premiumn payo.ionts wero adequate.

     We noted the followinvy errors which were discussed with members of your
scaff during the audit.

        1.    Erroneous ceveran'e.,         documents for five employees were
                                       -r.on't
              forwarded to thle Civilian 2ayroll Office for payroll procer.sing
              af;ter theo Directorate of Civilian 2ecrnonnel's indopendent
              roview process. %cac e rors, which should have been detected
              during the indcependt.it reviewo     process, appeared to be the
              result of arclccrsne;s.

        2. One employoe was undc;:-.aid $2.34 because his night work hours
           were not properly ex:tended. Wle were told that corrective action
              has been initiated.

        3.    One omployee war, ovciri:ai': $9.36 for Sunday premium pay when
              lhe was on sick leavc. i.e%;,ure advised that corrective action
              has bean taklen to collect the overpayment,
                                                                         base
     4.   Firefinhtoro recoivo prnliurt ray--currently 25 percent of
          pay-for regolarly sche.duled ste.ndby   time.   This  percentage
                                                                 of hours
          rate detemnination is ba.ned on a 1964 certificate
                                                     of projoeted  annual.
          actually i-orked and a 1967 certificate
          Sundays to be w!or!ed.  At the tim.e of   our review,  an updattd
          survey of these hours had  not been  made.

                                                                  of $6.68 were
     5,   Hazard pny overpaymoengs of $1.77 and underpaymr.nts
                                    T'oese errors  were  attributed  to manual
          made to four erployees.
                                         transactions   wore  fully autorated.
          processlng before hl.ardc pay
                                                                   distribtution
     6.   Contrary to inretructions, sor.e dos;lgnated check
          persons were Sivint salary      checks  to undesignated    "third
          parties" ratlher tlhan to    individual  enmployees.   iUO noted that
                                foarticn"  were  authorized   to cevtify  time and
           oor,,e of the "third
          attendance rerports.    This practice is contrary to good intornal
          control procedures.
                                                                 mail, some
     7.   Despite publicity given to check del.ivery by
          empnloyees  were   not  an':arc  tihat checks could be  rmailed to hoirlo
          addrenses.     Checks   delivered by mail reduce     administrative
          exponses   and  irm.;povo  tlet3 cquality and control of disbursing.

                                                                               pointed
        In August and September l'171, two intornal review reports
                                      lte Data Aiutoi.ation   Center's   practices.
ot        nncen tweaknesses in
         ant
'iuring    our reviey;, *'a notca tl,at: the _r:1ter:   erroncously erased tha
                                                                    period and used
 civilian payroll tinto and attc.:darnce ta.le for one pay
                                                                   rp. period.     le.'
 the uncorrocted time and att~u;::;:co tr:;'e for another
                                               lho''evcr,  because  of  the tg;o
 are concerned that error:: ', (,, tr. :,le;
 inteornal review:. and the Cintcr'.;      c,cfrt;s   to cor:lly with the reco:;~en;Xl-
 tions contained in thlos rc--rta,           . did not nursuo this mattcr further.

        aTherrors noted in (1) Lhccou;!h (7) above :oere of a relatively
                                                                                 to
minor nature.     ;a b.Hlieve tlh:'-t th:l s irs attribtited in large ,wrt
                                      ; roccdur-s    that  have  boon  -. statlished by
the.! effectivo interrnal control
                                                                of tl,e data being
the Civilian Payroll ,.rfice to cnLoure the accuracy
-)rocessed.

       Cops1i of this reptort a-ei.;:in,       tent to thr.    Commander, Air Force
Accoun,tin, and Vinnancc Ccnl'Ir, ');v';.,         oelor-.do, and to the U.AY
Auiittor General Re!rrc:;cnta''vc, 'aci''.C        Air ;Lorces    :cIasc
                                                                      CoGrvzand,
                                                cn''y
                                         .t..';al      of  this  report  is furnished for
fo' their inforelation. An ;
enclosure with thle auditd -c :-r:,";       hen
                                             c;l      oy are shipped to the icdaorai
heocord1i Center for poermanen;t ili.:


                                                                                      -2-
     Wao wlih to acknowLedgo the courtasiea and cooperation extended to
our ropreoontatives during the revie;w.

     Your conmments on the matters discusried in this report will be
appreciated.
                                    Sincorely youro,




                                     C. Roman
                                     Director

cc:
  Connander, Air Forco
     AcctS nnd Fin Cen,
     !cnver, Colorado
  U8;Al Auditor Genertl. Icpr,
     i:ACId? Baso Conrarand
  Director, ID




'JLS/L/GFS(Actg):twm
(10)
3--Addressee
3--cc ' s
2--FEB:84823/Chron
1--Hlr. Lewi s
1--W/P (Miss Sexton)