UNITED STATES GENERAL ACCOUNTING OFFICE REGIONAL OFFICE 502 U S CUSTOMHOUSE 2D AND CHESTNUT STREmS PHILADELPHIA, PENNSYLVANIA 19106 Mr MI lton I. Sharon Regional Director I U.S Civil Service Commission Room 706, U.S. Customhouse 2nd and Chestnut Streets 1 Phi iadelphra, Pennsylvania 19 06 Dear Mr. Sharon We have made a review for the settlement of accounts of the accountable officer at the Phi adelphla Regional Office, U.S. Civil Service Commission, through fiscal year 1970. This review was directed primarily toward an evaluation of admfnrstrative procedures and internal controls relating to the receipt and disbursement of funds and Included such tests of finan- cial transactions as we considered appropriate Program activities were not included in this review. We also reviewed the working papers and report of audit of administrative, personnel, fiscal and related support activities made by the Internal auditors of the U.S. Civi I Service Corrrnjssion (CSC), Washington, 0. C , for the period April 1969 through March 1970. Although we found the accounts, procedures, and controls to be generally satisfactory, we noted certain weaknesses which we believe require attention. We dlscussed these with you, your deputy, and your budget and accounting officer at our final conference and were assured that corrective measures would be taken where required. These weaknesses are sur&arlzed below. I I I i 50Tl-i ANNIVERSARY 1921- 1971 k * 1. Our revlew showed that almost 50 percent of the purchase discounts offered were not taken By reference to the fiscal year 1970 f 1 le, we identified 20 suppliers who offered discounts on 49 separate invoices Examinatfon of these rnvotces showed that discounts were not taken on 24 of them Although the monetary loss was not signrfrcant, the high percentage of drscounts lost indicates that large ones could also be lost. We suggest that personnel who process InvoIces be Instructed on the Importance of properly segregatrng and processing for prompt payment those Invoices whtch allow purchase discounts 2 Ten outstanding receivables, out of 39 open accounts, were found which were not being followed up In the time prescribed by Commission regulations. AdminIstratIve Manual Letter 176-182 provides that if a S F. 1081 or a check in payment of a S.F 1080 is not received within 60 days, follow-up should be made by telephone or in wrrtrng Additional follow-ups should be made at JO-day intervals thereafter, if necessary. For these 10 receivables we found that 6 to 28 days elapsed beyond the authorized 60 days before follow-up action was initiated However, the delay in follow-up action is not as extensive as it was found to be in our last audit. That audit showed that receivables were due from other Government agencies 6 to 10 months before follow-up collectron actton was taken, 3. We found in our exam i nation of disbursements that the average processing time for travel vduchers paid in June 1970 was 15 working days, We noted that the internal a dltors in their last report pointed out that the average processing rme for travel vouchers was 16 calendar days. In their report they stated that 10 days was generally considered a reasonable processing t ime. x We are in agreement with this conclusion. We wish to acknowledge the courtesies and cooperation shown our representattves during their review. We would appreciate receiving your comments as to action taken or to be taken on the matters described above. , .I b, In accordance with the General Accounting Office Policy and Procedures Manual for Guidance of Federai Agencies, title 8, chapter 3, the records ;i of transactions of the Philadelphia Regional Office through June 30, 1970, may be transferred to the Federal Records Center for storage. A copy of thls report is being furnished to the Executive Director of the United States Civil Service Commission. -2 -
Review for Settlement of Accounts of the Accountable Officer at the Philadelphia Regional Office, U.S. Civil Service Commission
Published by the Government Accountability Office on 1971-03-09.
Below is a raw (and likely hideous) rendition of the original report. (PDF)