oversight

Payroll Matters, United States Naval Academy, December 14, 1969, Through December 12, 1970

Published by the Government Accountability Office on 1971-06-14.

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

                  UNITEDSTATES G~NERALACCOUNTINEOFFICE
                         MIA%-IING-I-ON REGIONAL                    OFFICE
                                           FIFTH     FLOOR
                                 803    WEST     BROAD     STREET
                           FALLS       CHURCH,      VIRGINIA        22046




                                                                                    JUN 14 1971
The Superintendent
United States Naval     Academy
Annapolis,   Maryland    21402

Dear Sir

       We have made a review of the practices       and procedures applicable  to
the admlnistratlon   of certain      payroll matters for selected clvllian
employees of the United States Naval Academy for the period December 14,
1969, through December 12, 1970. Our review, which was made using statis-
tical sampling techniques,      included an examination     into the following
specific   areas

      1.   Granting of within-grade   increases   to General Schedule
           employees and step increases     to Wage Board employees.

      2.   Coordination of Wage Board practices                         under      the Coordinated
           Federal Wage System.

      3.   Retroactrve salary payments made under                            the Federal    Employees
           Salary Act of 1970 (Public Law 91-231).                                            .
       Our review also included an evaluation             of the system of internal
controls,    including    internal    audit, used by the Academy to assure that
the pay actions discussed above were processed in accordance with applr-
cable laws and regulations          and that verification       procedures assure
detection    and correction      of errors.    Our review did not include an examina-
tlon into the computation          of biweekly salary payments, leave, travel,      or
other costs.

         We found that, generally,   the adminlstratlon      of those areas of
civilian      pay which we examined was satisfactory         In addition,     we believe
the system of internal      controls   in effect  during the period of our review,
except as noted below, assured that pay actions covered by our review
were processed in accordance with applicable            laws and regulations.




                          50TH         ANNIVERSARY              7921-       1971
         We noted that only one internal      audit had been made In the area of
clvillan     pay In the past few years.       This audit was llmited  rn scope and
did not Include those areas covered by our review.           Internal  audit provides
a check on the accuracy of the work done and 1s an added safeguard against
mlsapproprlatlon      of funds.     In this regard,  the Accounting and Audltlng
Act of 1950 provides,       in part, that:

     "***the     head of each executive       agency shall establish   and malntaln
     systems of accounting       and internal     control  designed to provlde--
     Jrk* effective     control  over and accountablllty       for all funds, property,
     and other assets for which the agency LS responsible,             lncludlng
     appropriate     Internal   audit; ***.I'

        We did not find any lndlcatlon    that adverse effects      had occurred as
a result of this weakness m internal         control.    In fact, the work of the
Clvlllan    Payroll Office   1s accurate and reliable.        However, we consider
it unwise to let weaknesses in Internal         controls   exist even though no
dlscernlble    adverse results   have occurred.



      We wish to acknowledge the courtesies        and cooperation     extended   to
our representatives   durmg the review.

      Copies of this report are being sent to the Director,   Naval Area
Audit Service,  Falls Church, Vlrglnla, and the Commander, Navy Accounting
and Finance Center, Washmgton, D.C.
                                                                  .
                                             Sincerely yours,




                                                   D. L. Scantlebury
                                                   Regional Manager




                                                                                       -2-