Civilian Pay Audit, Maxwell AFB

Published by the Government Accountability Office on 1971-03-12.

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

                                                                /                                         i

                                             ACCOUNTING &KE                                                   a      *
                                            REGlONAL OFFICE
                                   ROOMZO~,~~~PEACHTREESTRCF~                 NE
                                        ATLANTA,GEOROIA,              30303


              U, S, Air Force Audltor General
              Eastern Audit D-Lvlslon
              Norton Arr Force Base, Callfornla                     92409

              Dear Sir:            ,

                     Enclosed IS a copy of our letter    report to the Commander,
              3800th Air Base Wing, Maxwell Arr Force Base, AZabama, on the
              results of our audit of cxvlllan    payroll acco,unts for the period
              January 4, 1970, through January 2, 1971.

                    We reviewed the Resident Audrtor's   working papers, audit
              program, and reports of audit for three audits coverlng selected
              segments of payroll processing, pay entitlements,    and time and
              attendance reporting.   Addltlonally,   we reviewed working papers
              for a fourth audit which covered check dlstrlbutlon    procedures.

                   We consider the audit work performed                            to be generally            ade-
              quate Ln the areas covered.

                Any comments on our report                  you wish to offer                will   be
         r appreciated,
     i    1

                                                            Very truly              yours,     '

                Copy of letter     report

         * cc:     U.S. Arr Force Resident
                   Building 745
                   Maxwell Air Force Base,

                          I                                                                                              i

                                    50TW ANNIVE
                                                     RE~lONAL QFFICE
                                           ROOM    204,161   PEACHTREE     STREET   N C
                                                  ATLANTA,    GWRGIA         30303        MAR % i? ‘is71

FQD-JJF          ,

                     Colonel Charles G. Webe;
                     3800th Azr Base Wing
                     Maxwell AYLTForce Base, Alabama                     36112

                     Dear Colonel Weber:

                              We have revxewed the payroll accounts processed by your lnstal-
                     latxon     for the period January 4, 1970, through January 2, 1971,

                           Our review was dzccted     toward an evaluation of the operating
                     procedures and nnternal controls applied in the overall payroll
                     operation,    Included in the review were dlscussrons wrth personnel
                     xn the CxvllLan Payroll Sectmn and the Crvllzan Personnel Branch
                     regardxng the procedures and controls applied Ln the payroll
                     operation.    To test the procedures and controls,    a statistical
                     sample of employee accounts was selected for detalled examnation,
                     The detarled examlnatron was concentrated In the areas of wsthln-
                     grade Increases (WGI’q), Coordznated Federal Wage System (CFWS),
                     and pay under the Federal Employees Salary Act of 1970. Also,
                     included In our revrew was an evaluation     of the procedures and
                     controls applied In the admlnlstratlon     of severance payments    to
                     znvoluntarlly    separated eqloyees,

                           Addrtionally, our review included an examlnatzon of the work
                     performed by the Resident Audltor rn the clvzlzan pay area,

                          DefXczences, which were discussed with you and members of
                     your staff at the conclusxon of our revrew, are summarized below.


                             One emplayee was overpaid due to recelvmg a WGI <rlor to
                     s'ervmg the required perrod of creditable       servxce at the next
                     lower step of his grade, The employee’s WGI was delayed one pay
                     period to allow 61 hours of excess noncredltable         servzce to be
         i           made up wzth credltable     service. However , durmg the extended
                     period the employee only made up 57 of the 61 hours.           The employee’s         ’
                     failure    to serve the entire 61 hours was not detected because
                     procedures had not been establlshed     to verify    that employees
   actually  make up the noncredltable     service     during   extended   portions
  of waLtzng   periods  for WG’f’s.    The overpayment       was recovered    prior                         to
   ccmpletmn   of our renew.
           Clvxkan      pay offzclals    should   establish       procedures      for aster-                     ’ ’
   talnrng     that    excess periods    of noncredltable         service    are made up with
’ creditable        service   during  the extended       portions      of waitzng     periods
 I for WGI’s.’                                       s                                        I


              Twenty-eight         employees     were overpaid      because   their saved salary
      rates were erroneously              Increased      upon conversion    to the CFWS. These
      overpayments         resulted     from mzsappllcatron         of the mlnlmum increase
      provzslons       of CFWS regulatxons            (Federal   Personnel   Manual Supplement
      532-l).      Responsible         base offlcrals        were aware of rhe overpayments      to
      these 28 employees            smce May 1969.

               With the exceptlon            of the failure    to ascertaln        that    employees
      actually      make up noncredatable             servlce  duzrng    extended       portions      of
      waiting      periods      for WGX’s and to take correckve               action      on the erro-
      neous conversions             to the CFWS, we canszder         the operatzng         procedures
      and internal         controls       applLed   In the payroll      operation       to be generally
      adequate       to ensure        the propriety      and correctness      of clvsllan        pay.

            We will   appreclare     your comments and advice   E& to act&k     t~.&en
      or contemplated     for deflclencles    not corrected   at the conclusion      of
      our renew.

               We wmlz    to     acknowledge   the   cooperation            grven   our   representatrves
      during     the   revxew.

                                                     Very       truly     yours,

                                                     Regional           Manager

      cc       Commander
               hrr Force Accountzng     and Finance              Center
               Denver,   Colorado   80205

               U.S. Ax Force Auuxtor           General
               Eastern  Audxt  D~vlsxon
               Norton  Air Fox ce Base,        CalxfornLa

               U.S. Air Force Resident           Audktor
               Ruildbng  745
               %ixwell  Arr Force Base,          Alabama        36112