oversight

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)

                       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.




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