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-
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)