oversight

Accounts of Accountable Officers

Published by the Government Accountability Office on 1971-03-24.

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

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                    ROOM      204.       361   PEACHTREE   STREET.   NE.
                                                                                                         L.J
                           iiTkAl\dTA,          GEORGIA      30303
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                                                                                  lllllllllllllllllllllllllIllIllll
Mr. Randolph Mobbs, Director                                                            LM092936

Birmingham Disbursing Center
Division of Disbursement, Treasury                         Department
2225 3rd Avenue, Horth
Birmingham, Alabama 35203

Dear Mr. Mobbs:

      We have completed our review of the records pertaining to your
accountability  as Disbursing Officer for the period January 1, 1967,
through November 30, 1970. The review was made pursuant to the
Budget and Accounting Act of 1921 (31 U.S.C. 53), and the Accounting
and Auditing Act of 1950 (31 U.S.& 67),

       Our review, which was completed in February 1971, was directed
principally    toward the accounting and internal   controls related to
your accountability    and included such tests of financial   transac-
tions as we deemed appropriate.       Also, we examined and considered
the audit report dated September 1970 prepared by representatives       of
the Audit Staff, Division     of Financial  Management, Bureau of Accounts,
Department of the Treasury, on their audit of financial      records,
reports, and related operations of the Birmingham Disbursing Center.

 NEED TO EVALUATE CONTINUANCEOF WORRFOR CREDIT UNION

        We were informed that the Cashier Accounts Clerk and the
  Personnel Clerk, in his absence, accept Federal Employees Credit
'Union deposits and loan payments, post borrowers' pass books, and
  keep the collections     in a specially   designated Government safe until
  picked up by a credit union representative.         The Cashier Accounts
  Clerk takes time out from his regular duties to perform the service.
  Roth employees are covered by the credit union's blanket bond. The
  Cashier Accounts Clerk is covered by a Government position        bond.
  This practice   reportedly   has been in effect since at least April 1,
  1964. The current schedule you established         on May 24, 1967, for
  credit union transactions,     is as follows:
                           Employees - Regular tour of duty

            Tuesday (after pay day) - 12:1.5 p.m. - 1:15 p.m.
            Wednesday     (do. >    - 12:15 p.m. - 2:15 p.m.




                      50 Ti-i ANNIVERSARY                        1921-     1971
                         Employees - Night---I__-
                                               shift

             Wednesday                     - 3:30   p.m. - 3:45 p.m.

This State-chartered      credit     union is a privately   owned cooperative
association.

       In our discussions   concerning the use of Government employees to
transact credit union business during their regular duty hours, it
was generally    stated that the arrangement with the credit union was
established   as a benefit to the Center's management and to its employees
because, otherwise,     the employees would have to take annual leave to
transact credit union business at another building      some distance away.

      We believe that,     in evaluating      the arrangement,   consideration
should be given to

      -- the value of the services rendered to the Center's
         management and to its employees,
      --   one of the basic objectives        of Federal credit unions
           that they be self-supporting        after their formative
           years, and

      -- discontinuing Federal         assistance to the credit union
         if it has the ability         to pay for these services,

      We shall   appreciate       your comments as to the action     taken on this
matter.


     /Our review of accounting and internal   controls and tests of trans-
actions disclosed no deficiencies  in functions    related to your
accountability,

      Pursuant to 8 GAO 13, records of financial  transactions which
have been audited by the General Accounting Office and which are no
longer needed for administrative   requirements may be sent to the
Federal Records Center for storage.

      We wish to acknowledge the cooperation           given our representatives
during this review.

      A copy of this     letter     is being sent to the Chief     Disbursing
Officer.




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