oversight

Potential for Improvement in the Army Reserve Drill Pay System

Published by the Government Accountability Office on 1971-08-30.

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

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25



a
                                   UNITEDSTATESGENERAL
                                                     ACCOUNTING
                                                              OFFICE
                                                 WASHINGTON,       D.C.   20548



DEFENSE   DIVISION



                     B-125037

                     Dear    Mr.    Secretary:

                                The accompanying        report     summarizes       our findings,
                      conclusions,     and recommendations             on the basis of our review
                ’    of the Army       Reserve    Drill    Pay System.         It shows that signifi-          ?,.I
                      cant economies       can be achieved         by centralizing      the Army     Re-
                      serve drill pay function        at one location        under a fully mechanized
                     pay system;      by discontinuing         the recording      of retirement      cred-
                     its for, and issuing annual statements                to, obligated    enlisted    re-
                      servists;    and by strengthening          controls     over attendance      at drills
                     by prescribing       sign-in  and sign-out         procedures      for use by Re-
                     serve units where practicable.

                              This report    contains recommendations       for your consider-
                     ation that are subject to the provisions        of section 236 of the
                     Legislative     Reorganization    Act of 1970.    We shall appreciate
                     receiving     copies of the statements    you furnish    to the specified
                     committees       in accordance   with this act.

                             Copies of this report     are being sent today to the Direc-
                     tor, Office of Management        and Budget; the Secretary   of the
                     Army;    the Chairmen,    House and Senate Committees       on Gov-                   - 4 s”e -’ ^
                     ernment     Operations;  the Chairmen,     House and Senate Commit-                      ‘7 ‘s z.
                     tees on Appropriations;      and the Chairmen,    House and Senate                      . , ’     ’
                     Committee     s on Armed    Services.                                                     P

                                                                    Sincerely     yours,    *




                                                          ; ~oej    Director,     Defense   Division

                     The Honorable
                     The Secretary       of Defense




                                         50TH ANNIVERSARY
                                                        1921-1971
    I
        GENERAL ACCOUNTING OFFICE                         POTENTIAL FOR IMPROVEMENT IN THE
    I   REPORT TO THE                                     ARMY RESERVE DRILL PAY SYSTEM
    I   SECRETARY OF DEFENSE                              Department of the Army B-125037
    I

    I
    I   DIGEST
        ------
    I
    I   WHY THE REVIEW WAS MDE
    I
               The General Accounting             Office  (GAO} +--.-----.:
                                                                   reviewed b-the,_-="
                                                                                     Army     Reserve
                                                                                       .. ____.
                                                                                             _~_        Drill  Pay
               System to determine             (1) the feasibility      of developing         a fully   mechanized
               system-at
                 -1-     -._..- a.- central
                                     -        point and (2) the effectiveness              with which the cur-
               rent
                 ..- __pay   system       is operating.                                               .

    i
    I   FINDINGS AND CONCLUSIONS
    I
    I
    1          Payrolls   for Reserve training  drills were being handled by nine finance
    I
    I          and accounting   offices  at an annual cost of $658,000.    Three of the
    I          nine offices   were using a manual pay system.            .
    I
    I
    I          All payrolls   for training drills    could be prepared at one place under a'
    I          fully  mechanized system at an annual cost of $533,000,     which, GAO esti-
    I
    I          mated, would save $125,000.       (See p. 6.)

               Army regulations    require    that retirement         points earned monthly by each
               reservist   be recorded without        regard to whether he might become a ca-
               reer reservist.      In view of the fact that 206,638 of an estimated 260,03
               reservists    are obligated    enlisted     reservists       and the fact that these re-
               servists   have a reenlistment       rate of only l-1/2         percent,  GAO feels that
               retirement    point credits    should not be recorded           for them.

I
               Instead,   records  should be maintained     to permit compilation       of total     re-
I              tirement    points earned for those individuals      who do'reenlist.        The elim-
I              ination   of this requirement   would result    in substantial      savings,   since
I
I
               Army commands currently     are expending approximately        $431,000 annually        in
I              personnel    and machine costs to process and account for retirement              points.
I
I
                (See p. 8.)
I
I
I
               Each Army command is responsible              for   prescribing regulations  for taking
I              and recording    attendance at drills            for those units under its jurisdic-
I              tion.   GAO found a wide variation             in methods used for recording    atten-
I
I              dance at drills.
               The basic documents--attendance       records and drills reports--for          the Army
               Reserve Drill     Pay System contain   discrepancies    in the number of drills
               performed by reservists.      The absence of uniform       attendance     procedures
               and of a standard attendance      form contributed    to the discrepa%ies.           As
               a result,  erroneous    payments were made to reservists         and retirement     cred-
               its either    were recorded  in error or were not recorded when earned.               In

I                         l




I       Tear Sheet
I
                                                                                                                          I
                                                      4’                                                                  I
                                                      ;-s                                                                 I
         the.month      included    in GAO's test--April      1970--the Army made erroneous                               I
         payments     totaling     about $116,900.       (See pp. 10 to 14.)                                              I
                                                                                                                          I

RECOMMENDATIONS
             OR SUGGESTIONS                                                                                               I
                                                                                                                          I
         The Secretary       of the Army should
                                                                                                                          I
           --direct       that   the Army Reserve drill pay function                      be centralized        in one    I
              place      under   a fully mechanized pay system;

           --direct      that recording   retirement      point             credits    for, and issuing     an-
              nual    statements   to, obligated     enlisted               reservists     be discontinued;

           --direct    that records       be maintained   to permit                  compilation    of total        re-
              tirement    points for      those who reenlist;

           --prescribe       uniform   procedures       for     observing        and recording       attendance
              at drills;

           --prescribe       a standard    attendance          form   for     use by all       Reserve     units;

           --prescribe    sign-in      and sign-out           procedures       for     use by reserve       units
              where practicable;

 x
           --prescribe  procedures        for   verifying         drill       reports      to attendance       rec-
     e        ords; and
                                                                                                                          I
           --place  increased   emphasis on the criteria                      and procedures        for    authoriz-      I
              ing and recording   equivalent  training.                                                                   I
                                                                                                                          I




                                                                                                                          I




          4
                        Contents
                                                       Page
DIGEST                                                   1
CHAPTER
  1       INTRODUCTION                                   3
  2       CENTRALIZING RESERVEPAY                       6
             Agency comments                            7
             Conclusion and recommendation              7
  3      - RECORDINGRETIREMENTPOINTS                    8
              Agency comments                           8
              Conclusion and recommendations            9
  4       REPORTINGATTENDANCEAT DRILLS                 10
             Discrepancies  in reporting drills per-
               formed                                  10
             Lack of uniform attendance procedures
               and of a standard attendance form       11
             Agency actions                            13
             Conclusion and recommendations            14
  5       SCOPEOF REVIEW                               15
GENERAL ACCOUNTING OFFICE                  POTENTIAL FOR IMPROVEMENT IN THE
REPORT TO THE                              ARMY RESERVE DRILL PAY SYSTEM
SECRETARY OF DEFENSE                       Department of the Army B-125037


DIGEST
------

WHY THE REVIEW WAS MADE

     The General Accounting     Office (GAO) reviewed the Army Reserve Drill      Pay
     System to determine    (1) the feasibility   of developing    a fully mechanized
     system at a central    point and (2) the effectiveness     with which the cur-
     rent pay system is operating.


FINDINGS AND CONCLUSIONS

     Payrolls   for Reserve training  drills were being handled by nine finance
     and accounting   offices  at,an annual cost of $658,000.   Three of the
     nine offices   were using a manual pay system.

     All payrolls   for training drills    could be prepared at one place under a
     fully  mechanized system at an annual cost of $533,000,     which, GAO csti-
     mated, would save $125,000.       (See p. 6.)

     Army regulations     require   that retirement        points   earned monthly by each
     reservist   be recorded without       regard to whether he might become a ca-
     reer reservist.      In view of the fac"t that 206,688 of an estimated             260,000
     reservists    are obligated    enlisted    reservists       and the fact that these re-
     servists   have a reenlistment       rate of only l-l/Z        percent,  GAO feels that
     retirement    point credits    should not be recorded          for them.

     Instead,   records  should be maintained     to permit compilation       of total     re-    *
     tirement    points earned for those individuals      who do reenlist.        The elim-
     ination   of this requirement   would result    in substantial      savings,   since
     Army commands currently     are expending approximately        $431,000 annually        in
     personnel    and machine costs to process and account for retirement              points.
     (See p. 8.)
                                                                                                  4
     Each Army command is responsible      for prescribing    regulations  for taking
     and recording    attendance at drills     for those units under its jurisdic-
     tion.   GAO found a wide variation      in methods used for recording     atten-
     dance at drills.

     The basic documents--attendance       records and drills     reports--for      the Army
     Reserve Drill     Pay System contain    discrepancies   in the number of drills
     performed by reservists.      The absence of uniform attendance           procedures
     and of a standard attendance      form contributed    to the discrepancies.          As
     a result,  erroneous    payments were made to reservists        and retirement      cred-
     its either    were recorded  in error or were not recorded when earned.               In



                                            1
     the month included  in GAO's test--April      1970--the Army made erroneous'
     payments totaling  about $116,900.       (See pp. 70 to 14.)


RECOMMENDATIONSOR SUGGESTIONS

    The Secretary        of the Army should

       --direct       that   the Army Reserve drill pay function                      be centralized        in one
          place      under   a fully mechanized pay system;

       --direct      that recording   retirement      point             credits    for, and issuing     an-
          nual    statements   to, obligated     enlisted               reservists     be discontinued;

       --direct    that records       be maintained   to permit                  compilation    of total        re-
          tirement    points for      those who reenlist;

       --prescribe       uniform   procedures       for     observing        and recording       attendance
          at drills;

       --prescribe       a standard   attendance           form   for     use by all       Reserve     units;

       --prescribe    sign-in      and sign-out           procedures       for      use by reserve      units
          where practicable;                                                                                    .

      --prescribe  procedures          for   verifying        drill       reports      to attendance       rec-
         ords; and

      --place  increased   emphasis onethe criterialand                           procedures    for    authoriz-,
         ing and recording   equivalent  training.




                                                2
                                     CHAPTER 1


                                  INTRODUCTION                                   3

        The U.S. Army Reserve is a Federal            force organized,
maintained,      and commanded by the Active          Army.     The mission
of the Reserve is to meet Army mobilization                 requirements      by
providing     (1) units   that are staffed,       trained,      and equipped
sufficiently      to be deployed    with a minimum of postmobiliza-
tion training      and (2) trained     officers     and enlisted       person-
nel to reinforce       and replace   losses     of Active      Army units.
When training      or on full-time     duty with Active         Army units,
members of the Reserve are considered             in a Federal       pay sta-
tus under the jurisdiction         of the Secretary         of the Army.

        The Reserve Forces Bill               of Rights    and Vitalization         Act
of 1967 made certain             changes in the organizational               and ad-
ministrative         structure       of Reserve components         to enable them
to better- meet their            mobilization       role.      The act created       a
Selected       Reserve within           each Reserve component to provide              a
basis for assigning             priorities      for personnel,       training,      and
equipment       to Reserve elements            which have the highest           re-
quirement       for meeting        the needs of the Department              of De-
fense.       The act provided            that members of Selected           Reserve
units     attend     a minimum of 48 drills             annually,    plus a period
of active-duty          training        of not less than 14 days each year.
For fiscal        year 1971 the Selected            Reserve of the Army Re-
serve was programmed to attain                  an average strength           of not
less than 260,000.

         The Army Reserve Drill            Pay System is decentralized                at
nine finance       and accounting         offices      in the continental
United      States and is operated            partly     on a manual and partly
on a mechanized        basis.      For a scheduled             drill      the Reserve
unit prepares       a drill     report --known as a Unit Record of Re-
serve Training --which          shows the status             of each member for
that drill.        Depending upon whether              a unit        is under a man-
ual or a mechanized          payroll       system,     unit     commanders use the
drill     reports   to prepare       military        pay vouchers           or enter cur-
rent data on a preprinted             military        pay roster          which shows
each member assigned          to the unit at the end of the payroll
period.        The pay roster      is used to furnish                pay data to fi-
nance and accounting          offices       for mechanical             preparation    of
military       pay vouchers.       Preprinted         military         pay rosters    are


                                            3
prepared by finance and accounting offices at the end of
the payroll period and are sent to Reserve units operating
under a mechanized payroll system.
       For both the manual and the mechanized systems, pay-
rolls,   together with substantiating  documents and Army Re-
serve pay voucher summary and certification      sheets, are
sent to finance and accounting offices      on a quarterly basis
for computation and payment.

      Reservists   become eligible      for retirement      pay after
completion of 20 years of qualifying         service and attainment
of 60 years of age. As of June 30, 1949, reservists                must
earn a minimum of 50 retirement        points a year to have that
year credited    as qualifying    service.     Not more than 60
points a year will be credited for drill           training    in any
one retirement    year.
       Retirement points are earned for days on active duty;
membership in an active status in a Reserve unit; participa-
tion in drills;   preparation  and presentation   of instruction;
performance of medical, pastoral,     and certain  legal duties;
attendance at professional    or trade co.nventions and at
Armed Forces seminars; completion of Armed Forces extension
courses; and some other services and duties.
       Training in lieu of attendance at regularly            scheduled
drills    is known as equivalent      training.     It may   consist  of
instruction,    training,    or other appropriate      duty.    Equiva-
lent training     must be authorized       in advance and must be in
the best interests       of the service--not     for the convenience
of the individual      member.
      Public Law 88-110, dated September 3, 1963, established
a uniform service obligation  of 6 years for every unmarried
male between the ages of 17 and 26 years.     This obligation
can be met by a combination of active military    service,    as-
signment to a unit or control  group in the Ready Reserve,
or assignment to the Standby Reserve.

     The General Accounting Office reviewed            the Army Re-
serve Drill Pay System to determine
      --the feasibility     of centralizing     the system on a mech-
         anized basis,


                                    4
--the   controls   over    drill     ,attendance         and related        pay-
   ments for drills,

--which  Army organizations   administered    various phases
   of the Reserve pay system and how these organiza-
   tions carried  out their responsibilities,

--the    accuracy    of payments       for   attendance        at drills,

--how reservists    were given credit              for     retirement        ben-
   efits for drills   performed,  and

--what    internal    audits       were made of the         pay system.




                                                                  ,
                               CHAPTER2

                     CENTRALIZING RESERVEPRY

      The Army could save $125,000 annually by processing
payments for Reserve drill      training     at one central  location
under a fully mechanized payroll         system.   This would be
more efficient     and would result in better service to indi-
vidual reservists.
        Presently   Reserve drill-training       payrolls   are paid by
nine finance and accounting offices           in the continental
United States; one finance office each in the lst, 3d, and
5th Army areas, two in the 4th Army area, and four in the
6th Army area.       Six of these offices      use a mechanized pay-
roll system, whereas three in the 6th Army area use a man-
ual system.       According to the Army, which developed the
information      at our request, the current annual*costs         at-
tributable     to the Reserve payroll      function     at these nine
offices     is $658,000.
      Over 40 percent of all Army reservists           in the United
States receiving     drill    pay- -those in the 1st Army area--
are paid by one finance and accounting office at Indiantown
Gap Military   Reservation under a mechanized payroll           system.         ‘i
Current automatic data processing costs and related person-
nel costs for this operation are estimated to be $237,000 .
annually.    Indiantown Gap estimated that, with additional
annual costs of $296,000--primarily           for more personnel--it      ,
could process all drill-training          payrolls  for reservists     in
the United States.         Thus the total estimated cost of proc-
essing all drill-training        payrolls   by Indiantown Gap is
$533,000, or $125,000 less than the amount currently              being
paid to process Reserve pay at nine separate locations.                     '
      Centralizing      payment of Reserve drill-training       pay at
one location     under a fully mechanized payroll         system also
would simplify      operations   at Reserve units now using a
manual payroll      system. Unit commanders no longer would have
to prepare a military        pay voucher for each member to be
paid- -as is now done under the manual system--but,instead,
would enter only current data on a preprinted            pay roster
which shows each member assigned to the unit at the end of
the payroll     period.

                                    6
AGENCY COMMENTS

        Indiantown        Gap officials          expressed       a willingness,        as
well    as an eagerness,          to process         all    Reserve      payrolls   if
they were given           the additional          resources.         This matter       also
was discussed         with    the Chief        of Army Reserves           who expressed
general      agreement       with   the concept          of centralization         but
who stated       that     it would      require       consideration         and approval
by the Army.

CONCLUSION       AND RECOMMENDATION

        We believe       that  there     are     opportunities        for    signifi-
cant    savings     and better      service        to reservists        through
readily      implemented      changes      to    the Reserve       pay system.

       To achieve       these   savings,       we recommend        that   the Sec-
retary     of the Army centralize            the Reserve      drill      pay func-
tion   at.one    location,under          a fully    mechanized        pay system.
                                 CHAPTER3

                      RECORDINGRETIREMENTPOINTS
      Retirement points are recorded monthly on each en-
listed reservist's     record, and reservists     are furnished
with annual statements of retirement       credits    earned--at
an annual cost of about $431,000--even        though few reserv.ists
having obligated    service reenlist   after serving their ini-
tial enlistment    period.    In our opinion,    this is an unneces-
sary and costly procedure.

       Using information    shown on personnel rosters furnished
to them monthly by Reserve units,       all five Army Headquar-
ters in the United States record manually the number of
retirement    points earned by each reservist       assigned to
units under their command. Also they furnish reservists
with annual statements of the retirement          points credited
for the preceding year.       Two Armies--the     1st and 6th--were
more than a year behind in recording        retirement    points and
in furnishing     annual statements to reservists.

       As    of December 31, 1970, the Army Reserve had 226,306
enlisted      members in a pay status.      Army officials     informed
us that      206,688 of these members were first       enlistment
reservists      having obligated    service under the Reserve En-
listment      Program of 1963. Experience has shown that such
reservists      have a reenlistment     rate of only l-l/Z     percent.
      Reservists   become eligible    for retirement     pay only
after completion of 20 years of qualifying         service and at-
tainment of 60 years of age. Prior to reenlistment            for a
second tour of duty, there is no indication          that a reserv-
ist is likely    to continue in the Reserve until he is eli-
gible for retirement.       Consequently,   up to this time, re-
cording the number of retirement       points earned by an indi-
vidual serves no useful purpose.
AGENCYCOMMENTS
      Officials of the 6th Army have acknowledged that the
present system of recording retirement    points is unwieldy
and complicated  and does not lend itself    to mechanization.
They believed that retirement   point credits   should not be
recorded   for reservists having obligated      service  because of
the small number of these reservists      who would remain with
the Reserve program once the initial      period    of service  was
completed.

CONCLUSION AND RECOMMENDATIONS

      We believe  that recording       retirement     point   credits  for
first  enlistment   reservists      and furnishing     annual statements
to them is unnecessary       and that substantial        annual savings
could be realized     by discontinuing        this practice.

      We recommend      that   the   Secretary     of the Army direct          that

      --recording     retirement     point   credits      for,   and issuing
         annual statements       to, obligated       enlisted     reservists
         be discontinued       and

      --records    be maintained  to permit   compilation     of total
         points   earned for those individual    who reenlist.




                                                                      .




                                        9
                                    CHAPTER4

                    REPORTINGATTENDANCEAT DRILLS
        The basic documents for the Army Reserve Drill                      Pay
System- -attendance      records,      drill    reports,     military       pay
rosters,    and/or military       pay vouchers--contain             discrepan-
cies in the number of drills            performed       by reservists.          The
absence bf a uniform        attendance       procedure     and of a standard
attendance     form contribute       to these discrepancies.                As a
result,    erroneous   payments were made to reservists--esti-
mated at $116,900 in April           1970--and      retirement        credits
either    were recorded     in error       or were not recorded           when
earned.

DISCREPANCIESIN REPORTINGDRILLS PERFORMED
        From Reserve units       in the United     States, we selected
a statistical        sample of 107 units     for our review.     These
included      units    in each of the five Armies in the continen-
tal United       States.    Of the 107 Reserve units,      23 did not
provide     us with attendance      records,    other than the drill
reports      (Unit Records of Reserve Training).

         Our comparison     of April   1970 drill     reports    with atten-
dance reports      for 84 units      and with pay rosters        and/or
military     pay vouchers     for all units     showed that 152 dis-
crepancies     had been made in recording          the drills     performed
for 34 units,      which resulted      in overpayments        and underpay-
ments totaling       $3,475.

      About 72 percent    of the         $3,475 (68 percent  of the dis-
crepancies)  were overpayments            for drills.   Two examples of
such overpayments   follow.

                In one reserve   unit  38 reservists      were paid for
       one drill     more than was scheduled        in the quarter.
       Army regulations       do not authorize     payment for such ad-
       ditional     drills.    Overpayments    of about $335 were made
       to these reservists.

              In another   reserve     unit   two reservists    were re-
       ported   on the drill     report     as constructively    present
       for five drills     scheduled      in April    1970 because they


                                         10
       were scheduled    to perform   equivalent         training      in lieu
       of such drills.     The pay rosters,        however,       indicated
       that the members had been absent from these drills,
       and consequently    they were not paid.             Information      fur-
       nished to us by the units      indicated        that the two mem-
       bers had performed     the equivalent       training       as sched-
       uled and therefore     were entitled      to payment.           These
       two reservists    were underpaid     about $160.

        On the basis of our sample, we estimated             that errors
in payments made to reservists            for 1 month, April      1970,
totaled     $116,900.      Further,    as a result    of these errors,     re-
servists-were      credited     with either     too many or too few
drills    for retirement       purposes.     This ultimately     could af-
fect the reservists'         rates of retirement       pay.

LACK OF UNIFORM ATTENDANCE PROCEDURES                     .
AND OF A STANDARD ATTENDANCE FORM

        Reserve-units      used different        methods to observe     and
record    attendance.at       drills     because uniform     attendance   pro-
cedures and a standard            attendance     form had not been pre-
scribed    by the Army.        We believe      that this   lack of uniform
procedure      contributed     to the discrep&rcies        in the drill
records.

Uniform    attendance     procedures     needed

        Neither      the Department      of the Army nor the Continental
Army Command has issued uniform               procedures     for recording
attendance       at drills.      We noted in our visits          to headquar-
ters of three Army commands that two of them had issued
procedures        f$r recording     and reporting      attendance     and that
one had not.’          The one Army command relied          on its subordi-
nate Reserve commands to perform                this function.      While at-
tending     meetings      of selected     Reserve units,       we observed    the
following       breakdown     in controls     over attendance      data.

       --O&e Army command required       all units  to use the roll-
     1    call procedure.     We found that this procedure        did
          not provide   adequate   documentation   of attendance.

       --At one unit within     this command, we found              that one
          reservist  had received    pay and retirement             points
          although  his presence    could not be verified.


                                        11
             --At   another      unit    we noted    that 15 members                   who were
                excused     from     formation    but marked  present                   had never
                been located.

             --We also        counted   the members    present    at the closing
                formation        and found   that  the attendance      registers
                reported        24 more men present      than our count.         We
                could     find    no documentation     for   10 of these      24 who
                supposedly        had been excused.

             --At     one unit      in another     Army command,      we found                 inade-
                quate     administrative        control    over    the roll-call                   ros-
                 ters    and related        pay documents,      which   resulted                 in
                 erroneously        counting    four    men as present.

             --In      another   unit   we noted             that    three      reservists        had
                 been marked      present    but            were performing            equivalent
                 training      in lieu    of the            scheduled      drill.

    The above        variations     in         procedures         demonstrate         the   need    for
    uniformity         in recording            attendance         at drills.

    Standard       attendance         record       needed

            Currently        a variety       of attendance           records-are        used by
    Reserve      units.         Some units      use sign-in          and sign-out         regis-
    ters,     others      use roll-call         rosters,         and still       others     use
    the worksheet           copy of the drill            report.        For those       units
    using     sign-in       and sign-out        registers         and roll-call         rosters,
    a variety        of   locally      reproduced        forms      were used.
b
             To simplify          the recording             of attendance,            one standard
    attendance         record       should      be prescribed            for use by all           Re-
    serve     units.        Instructions             should      be issued        explaining       how
    the attendance            record       shollld        be prepared.          Such instruct-
    tions     should      include       a requirement             that     reservists        sign    in
    and out at drills               and that         drill     reports       be independently
    verified        to ‘attendance          rosters         and military          pay rosters.
    The use of a standard                 attendance           record      not only       would    re-
    duce the number             of errors          in recording          attendance         but also
                                                                                              a
    would     aid in the audits               of Reserve          units.




                                                      12
Noncompliance with     existing
equivalent  training    regulations
      Army Regulations      140-l and 37-125 require that unit
orders authorizing      equivalent     training     in lieu of atten-
dance at scheduled drills        be issued prior to the perfor-
mance of such training.         At a unit in one Army command, we
found that 21 members had been excused from regularly               sched-
uled drills    to perform equivalent         training    without the re- _
quired orders authorizing        the training.        At a later date
orders were issued and backdated to cover performance of
the equivalent    training.      The backdating of such orders and
the absence of substantiating          documents raise a question as
to whether the training       actually     was performed.
AGENCYACTIONS
       The Army Audit Agency, in its review of Reserve activi-
ties in 1969, recommended to the Commanding General, Conti-
nental Army Command, that uniform procedures for recording
attendance at training   assemblies be established.      Specifi-
cally it recommended that sign-in    and sign-out registers       be
used and that the commanding officer     or a designated repre-
sentative   witness the signing of the registers    at the begin-
ning and end'of each training    assembly.
       The Department of the Army informed the Army Audit
Agency that it did not concur in this recommendation.         It
took the position    that uniform Army-wide policies   contained
in Army Regulations     135-91 and 140-185 provide commanders
with adequate guidance on this subject and that it would be
ineffective   and inappropriate   to impose procedures which
would apply to all Reserve units in an area that is a matter
of command responsibility.

      The Department of the Army believes that improvement
in this matter depends solely upon increased command empha-
sis, particularly   at the unit level.   Commanders at all
levels will be directed   to place more emphasis on this mat-
ter, and the subject will be included in a checklist    to be
prepared for the use of Army advisors to Reserve units.
     The results    of our review, however, have indicated
that attendance-recording     procedures that do not require
the member to sign in and out at a training     assembly do not


                                      13
provide a satisfactory    record of those in attendance at
the drill.   We therefore    concur in the Army Audit Agency
recommendations.
CONCLUSIONAND RECOMMENDATIONS

       Accurate attendance records and drill  reports are es-
sential   to an effective  drill pay system.  Drill reports
are the basis upon which pay is computed and retirement
credit is given to reservists.     They can be only as accu-
rate, however, as the attendance reports on which they are
based.
       Currently there are a sufficient    number of discrepan-'
ties between drill    reports and attendance records in the
number of drills   performed to seriously    affect the accuracy
of payments under the Army Reserve Drill       Pay System. We
believe that these discrepancies      can be reduced.
      To ensure that accurate attendance data are submitted,
we recommend that the Secretary of the Army prescribe
     --uniform procedures         for        observing     and recording   atten-
        dance at drills,                                      *

     --a standard     attendance        form for         use by all   Reserve
        units,
     --sign-in     and sign-out     procedures            for   use where prac-
        ticable,    and
     --procedures   for verifying  Unit Records of Reserve
        Training  to attendance records.
     Additionally    we recommend that the Secretary of the
Army place increased emphasis on the criteria     and proce-
dures for authorizing    and recording equivalent   training.




                                        14
                             CHAPTER5


                           SCOPEOF REVIEW
      In evaluating  the Army Reserve Drill      Pay System,   we
reviewed the following   Army activities.

Army Finance Center,
  Fort Benjamin Harrison,     Indiana

     --To determine whether reservists    had been paid prop-
        erly for drills  performed, we compared the atten-
        dance records for April 1970, where available,      with
        the Unit Records bf Reserve Training    and, in turn,
        these records with the individual   pay rosters and/or
        military  pay vouchers for 7,471 reservists    assigned
        to 107 selected training   units.

     --To ascertain    whether pay information   had been re-
        corded properly,   we audited the military   pay vouchers
        of 866 reservists.
Headquarters, U.S. Continental         Army Command
  Fort Monroe, Virginia

      --We reviewed this command to obtain information    on
        the command structure    of the U.S. Army Reserve and
        to ascertain  the type and scope of inspections   per-
        formed at Reserve units.
U.S. Army Administration     Center,
  St. Louis, Missouri
     --We made a review to obtain information    on what per-
       sonnel data were available  on the individual   reserv-
       ists and on the kinds of reports issued with respect
       to the Ready Reserve.




                                  15
Headquarters,          1st U.S. Army,
  Fort Geo’rge         G. Meade, Maryland
Headquarters,          5th U.S. Army,
  Fort Sheridan,          Illinois
Headquarters,          6th U.S. Army,
  Presidio    of       San Francisco,   California

          --We obtained       general     information    on how these commands
             operated    within    the Reserve organization.          We deter-
             mined the extent        to which these commands directed,
             supervised,      and reviewed       the recording    and reporting
             of attendance      at drills       and the processing    of perti-
             nent personnel      data for pay and retirement          purposes.

Finance     and Accounting      Office,    Indiantown    Gap
   Military    Reservation,       Pennsylvania
Finance and Accounting          Office,    Presidio   of
   San Francisco,      California

          --We reviewed      these offices     to obtain      information     on
             the operations      of, and to evaluate        the effectiveness
             Of,  the  finance    and  accounting    offices       relative
             to the Army Reserve Drill         Pay System.

Various      Reserve     units

          --We evaluated       the procedures     and controls   for observ-
             ing Y recording,     and reporting     attendance   at drills
             by reservists.       We visited    the number of Reserve
             units   specified    after    each of the locations     listed
             below.

                   Camden, New Jersey             (2)
                   Horsham, Pennsylvania                (1)
                   Indianapolis,         Indiana        (4)
                   Mountain      View, California             (1)
                   Oakland,      California         (1)
                   Philadelphia,         Pennsylvania           (1)
                   San Francisco,          California         (1)
                   Sausalito,       California          (1)
                                            .




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