I UNITED STATES GENERAL ACCOUNTING OFFEE REGIONAL OFFICE I I ROOM 1000 FEDERAL OFFICE BUILDING 911 WALNUT S-l-R& El- KANSAS CITY, MISSOURI 64106 fi L August $3, 1971 Lieutenan$ Colonel John A. Rapp , I Commanding Officer & U. S. Marine Corps Finance Center Kansas City, Missouri 64197 Dear Colonel Rapp: cd We have made a review to evaluate the effectiveness of the general audit branch's examination of travel vouchers. We believe the branch could be more effective by revising its audit approach to place more emphasis on vouchers submitted by activities experiencing high error rates. 4 The branch has audited all of the vouchers submitted during one month by selected activities and attempted to cover each activity once a year. For the six months, March through August 1970, 36 activities submitted about 265,000 vouchers. The branch audited a total of 20,575 vouchers from lS of the activi- ties and found an overall error rate of 7.1 percent. But th& error rates by activity ranged from less than 5 percent for 12 activities to 17.3 percent or more for two activities. Since only one month's vouchers were examined it seemed likely that n3any errors were not detected, particularly at those ac- tivities experiencing high error rates. A random sample that we'selected from the 265,000 vouchers after the ', audit branch completed its work contained an error rate of 12.9' percent. The errors are tabulated in the attachment. Our sample contained a proportionate number of vouchers that had been examined by the audit branch, but we found no errors in these vouchers. We believe, therefore, that the relatively high number of undetected errors resulted mostly from the branch's method of selecting vouchers rather than from the quality of its audit of individual vouchers. If the branch could be more selective in sts audit of activities making relatively few errors, more intensive audits could be made of those activities where the error rates are higher. This should, in our opinion, significantly increase the effectiveness of its audit work. 'Since the sample was selected at random, the precision of estimates from it can be calculated. We are 95 percent confident that the overall ' , error rate is from 7.7 percent to 18.1 percent and the dollar amount of the errors is from $321,000 to $1.5 million. 50 TH ANNlVERSARY 1921- 1971 The Head, Examination DivisTon, of which the general aud5-t branch is a part, agreed with these conclusions and said some type of sam,pliYlg ' technique would be adopted. We would appreciate youx comments. We appreciate the cooperation received by OUT staff during the review, Copies of this report are being sent to the Commandant of the Marine dorps, the Comptroller of the Navy and the Director, Navy Audit Service. Sincerely yours, g&&e I 'K, L. Weary Re@onal Mknager t Fxml. AT!l?A- Type of error Rmiber Percent of error Amount \ “Commuted rations vs. . per diem 3 15 $ 54963 Incorrect computation of travel-time a 40 196.d' Failure to credit leave ratdons for period of delayenroute 2 10 Incorrect computation of distance for mileage 3 I 15 60.86 . Group travel vs. per diem 1 5 a.00 Field duty VS. per diem 1 5 24.00 Erroneous computation of per diem 1 5 6.46 4 U&authorized reimbursement of charges for quarters 1 5 19.50 Total6 " 100 $542.52 - \ t , At/ Potential error in unused leave settlement based on rates of pay cuzkently applicable to the metier's grade an3 year6 of service.
Examination of Travel Vouchers
Published by the Government Accountability Office on 1971-08-13.
Below is a raw (and likely hideous) rendition of the original report. (PDF)