oversight

Need for Improved Reports for Monitoring Military Bonus Program

Published by the Government Accountability Office on 1977-03-31.

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

                         DOCUMENT RESUME

00668 - [A10518311

[Need for Improved Reports for Monitoring Military Bonus
Program]. YPCD-77-34; B-160096. March ?1, 1977. 11 pp. +
enclosures (9 pp.).

Report to Rep. Melvin Price, Chairman, House Committee on Armed
Services; by Elmer B. Staats, Comptroller General.

Issue Area: Personnel Management and Compensation (300).
Contact: Federal Personnel and Compensation Div.
Budget Function: National Defense: Military Assistance (052);
    National Defense: Department of Defense - Military (except
    procurement & contracts) (051).
Organization Concerned: Department of Defelse.
congressional Relevance: House Committee on Armed Services;
    Senate Committee on Armed Services.
Authority: Armed Forces Enlisted Personnel Eonus Revision Act of
     1974 (P.L. 93-277). H. Rept. 93-857.
          As a r=~ult of an earlier GAO report, the House
Committee on Armed Services (the Committee) directed the
Department of Defense (DOD) to submit semiannual reports on its
bonus programs in an effort to insure that the services wculd do
their utmost to eliminate wasteful practices and administer the
programs as intended. GAO now believes that certain changes in
the structure of these reports could improve their usefulness in
monitoring both the administration of the bonus authority and
the bonuses' effect on solving attraction and retention problems
in critical skills. Findings/Conclusions- Cur-ent report
information (format 1) on the number and skills cf members who
received bonuses is not sufficient to evaluate the bonisest
effect on solving attraction and retention problems in critical
skills. Information on the number and skill of bonus recipients
nerving outside their bonus skills (format 2) does not show
whether the data reported is significant in relation to the
total bonus recipients on active duty. The Ccumittee did not
request DOD to report the number of bonus recipients who
received involuntary discharges or the amount of their unearned
bonuses. The substantial length of the currant r<e)rts makes it
difficult to use them to monitor the bonuses' effect on solving
attraction and retention problems in critical skills. Current
reporting periods are not in concurrence with established data
collection cycles. Recommendations: Format 1 should show: the
total enlistments and reenlistments achieved in each critical
 skill; the funded enlistment and reenlistment bonus gcals; and
 the number and amount of all enlistment bonuses committed and
 reenlistment bonuses paid. Bonus program achievements should be
 viewed in the light of the bonus costs. Report format 2 should
 distinguish among: recipients improperly assigned and serving
 outside their bonus skills; recipients reclassified due to
 normal career progression; and recipients serving in approved
 comparable skills. Future reports should include all recipients
discharged pricr to completion of their obligated bonus service.
The report should include a highlights secticn summarizing the
most significant information and the report cycle should be
adjusted to coincide with the Federal fiscal year so that the
reported program results can be reconciled with cther program
information. The Committee should instruct DOD to evaluate each
service's data collection and reporting procedures to insure
that the above criteria will be met. (Q})
     \
  -~~o   ai   ~COMPTROLLER   GENERAL OF THE UNITED STATES
                         WASHINGTON. D.C. ZaS4




B-160096                                          MAR 3 1 1977
The Honorable Melvin Price
Chairman, Committee on Armed Services
House of Representatives

Dear Mr. Chairman:

     The Committee will soon be considering legislation
proposed by the Dopartmen' of Defense to make permanent the
authority to pay enlisted personnel bonuses. The authority
for these bonuses expires June 30, 1977; however, H.R. 583,
which proposcs to extend the authority to September 30,
1978, was passed by the Housce of Representatives
February 8, 1977.

     Since 'he enlisted personnel bonus program was
authorized June 1, 1974, tfhe Committee has used semiannual
bonus reports by the Department of Defewse to monitor the
bonus program's progress.   We believe that certain changes
in the report's structure could improve its usefulness in
monitoring both the administration of the bonus authority
and the bonuses' effect on solving attraction and retention
problems in critical skills.

BACKGROUND

     Public Law 93-277, the Armed Forces Enlisted Personnel
Sonus Revision Act of 1974, approved May 10, 1974,
authorizes the Department of Defense to pay enlistment and
reenlistment bonuses to enlisted personnel on a selective
basis in order to fill critical and shortage skills in the
armed services.  By May 31, 1976, the services had awarded
95,600 bonuses.  Bonus payments through fiscal year 1975
totaled about $188.5 million. This amount, plus projected
bonus payments through fiscal year 1977, will total about
$541.3 million.

     The objective of the enlistment bonus, limited to
$3,000, is to increase the number of initial enlistments in
critical and shortage skills. The Secretary of Defense has
the authority to determine critical skills. Currently, only
the Army and Marine Corps pay enlistment bonuses in combat
arms and highly technical skills.

     To be eligible for the bonus, an individual must meet
the following requirements:'

                                                            FPCD-77-34
B-160096



     -- Be a high school graduate or have successfully
        completed the General Educational Development
        program. 1/

     -- Be classified as mental category group I, II, or III.

     -- Enlist for the purpose of qualifying and serving
        in a bonus skill for at least 4 years.

     The member begins receiving his bonus upon successful
completion of his bonus skill training.

     The selective reenlistment bonus is intended to increase
reenlistments in critical skills that have retention levels
insufficient to adequately staff the career force.  Bonuses
are limited to $12,000, except for certain nuclear trained
and qualified enlisted members of the Navy who may receive
up to $15,000.

     'The reenlistment bonus is designed to offer a financial
incentive at any point between 21 months and 10 years of
active service.   Two reenlistment periods have been estao-
lished, Zone A and Zone B. Zone A includes reenlistments
occurring between 21 months and 6 years of service.
Reenlistment during this period is considered the first
career decision point for an enlistee and receives the major
emphasis of the selective reenlistment bonus prcgram.   Zone
B includes reenlistments between 6 and 10 years of service.

     Service personnel must meet the following conditions to
be eligible for the bonus:

    -- Be serving on active duty in pay grade E-3 or higher.

     -- Be qualified and serving in a critical skill.

     -- Reenlist within 3 months after the date of discharge
        or release from active duty.

     -- Reenlist for at least 3 years.



1/In January 1976, the Army announced that effective June 1,
  1976 personnel certified by the General Educational Devel-
  opme.,t program would no longer be eligible for the enlist-
  ment bonus.



                               2
B-160096


NEED TO IMPROVE REPORTS FOR MONImOR.NG
ENLISTED PERSONNEL BONUS PROGRAMS

     Prior to the enactment of Public Law 93-277, GAO
reoorted to the House Committee on Armed Services concerning
the use of variab]e reenlistment bonus recipients in non-
bonus skil1s and unsuccessful service attempts to recoup
unearned bonuses. As a result, the Committee notified the
Department of Defense that it intended to monitor use of the
expanded bonus authority on a careful and continuing basis..
To assure that the services would do their utmost to elim-
inate wasteful practices and administer the bonus incentive
programs as intended, the Committee directed the Department
of Defense, in House Report 93-857, to submit semiannual
reports showing
     "* * * the number and skill of members of the armed
     forces who received enlistment or reenlistment bonuses
     during the reporting period; the number and skill of
     persorn:el serving outside the skill for which a bonus
     was paid; the number and skill cf personnel who, for
     any means, did not complete the enlistment or reenlist-
     ment for which the bonus was paid and for which recoup-
     ment action has been required, including the uncollected
     amount of bonus and the type of discharge for the persons
     involved."

     As currently structured, the bonus report presents most
of the requested data in three formats corresponding to the
three areas of Committee interest. We believe the report
should be restructured according to the formats proposed
herein.
Number and skill of bonus recipients
     Format 1 in the current report lists the number and
skill of members who received. enlistment and reenlistment
bonuses during the reporting period.    (See enc. I.) How-
ever, this information is not sufficient to evaluate the
bonuses' effect on solving attraction and retention problems
in critical skills.
     We believe format 1 should show (1) the total enlist-
ments and reenlistments achieved in each critical skill,
(2) the funded enlistment and reenlistment bonus goals, and
(3) the number and amount of all enlistment bonuses committed
and reenlistment bonuses paid.  (See enc. II.)


                              3
 B-160096



This would permit the monitor to evaluate whether the
services are achieving the bonus goals set by the Department
of Defense and funded by the Congress, and whether the
bonuses are assisting in solving the problems of attraction
and retention in critical skills.

      Another factor omitted from format 1 is the money
spent on bonuses in each critical skill. We believe bonus
program achievements should be viewed in light of the
                                                        bonus
cost.

Recipients serving outside bonus skills

     Format 2 in the current report provides the number and
skill of bonus recipients serving outside their bonus
(See enc. I.)                                         skills.
               However, the format does not show whether the
data reported is significant in relation to the total
                                                      bonus
recipients on active duty.

      To show this relationship, it would be necessary
maintain a cumulative inventory of all bonus recipientsto
                                                          from
a particular date, such as October 1, 1976.   Recipients who
completed their obligated bonus service or were discharged
after this date would be subtracted from the total bonuses
paid.   this would show the individuals on active duty who
were receiving bonuses.

      Since bonus recipients may serve in comparable skills
approved by the Assistant Secretasy of Defense (Manpower
                                                          and
Reserve Affairs) or may be reclassified in liner with normal
career progression, such as a promotion to a more complex
skill, we believe report format 2 should distinguish  between
the following (see enc. III).

     -- Recipients improperly assigned and serving outside
        their bonus skills.

     -- Recipients reclassified due to normal career progres-
        sion.

     -- Recipients serving in approved comparable skills.

     In addition, we believe the Navy should provide an
mate of the number of bonus recipients serving in generalesti-
billets. This will be further discussed later in our
                                                      report.




                              4
  B-160096



  Recipients discharged prior to
  completion of enlistments
      Format 3 in the current report
                                      provides the number and
 skill o; bonus recipients who
                                were discharged prior to com-
 pletion of their obligated service,
 misconduct, and the unearned bonuses for voluntary reasons or
 from those individuals.               and amounts uncollected
                           (See enc. I.)
      A summary of the discharge and
                                      recolpment information
 reported to the Committee from
 1976, shows that more than 89 June 1, 1974, through May 31,
                                percent of the unearned bonuses
 were uncollected.

                 Selective Reenlistment Bonus (SRB)

                 Number of           Required
 Service         discharges          recoupment       Uncollected
Army                 476           $1,138,510.41      $1,062,972.20
Navy                  38
Air Force                             101,253.:0          86,538.78
                      18               16,008.73
Marine Corps           3                                     815.60
                                        1,998.94              -
     Tctal SRB       535            1,257,771.38      1,150,326.58
                       Enlistment Bonus (EB)
Army               1,712            3,225,529.43      2,901,473.34
Marine Corps          72               56,813.44
    Total EB       1,784            3,282,342.87      2,901,473.34
Total              2,319           $4,540,114.25   a/$4.051,799 92
 a/The scope of our review did
                                not include an analysis of
   the recoupment procedures used
                                   by the services.
 Involuntary discharges should
                                be reported
      Unearned bonuses are not required
bonus recipients who receive involuntaryto be recouped from
than for misconduct, prior to               discharges, other
or reenlistments.              completion   of their enlistments
                    The Committee did not request
ment of Defense to report the                       the Depart-
                               number of recipients who
received such discharges or the
                                  amount of their unearned
bonuses.



                              -5
 B-160096



      A sample of i.6 Navy bonus recipients
 the 6-month period which ended December       discharged during
 completing their bonus service obligation,31,  1975, pr.;or to
                                               showed that only
 14, or less than 10 percent, .ere
                                    reported to the Committee.
 We also noted that 28 recipients, or
 discharged with physical cisabilities almost 20 percent, were
 reported to the Committee. We could    and therefore not
                                       not
 the remaining 104 recipients discharged    determine whether
 not reported because recoupment was       in  this period were
                                      not required.
     We believe future reports should include
discharged prior to completion of             all rec pients
                                  their obligated bonus
service.  (See enc. IV.)
      Total discharge statistics would assist
                                               the Committee
in evaluating the performance of program
particularly those involved in screening administrators,
for a bonus. FuLther, the Committee        personnel eligible
monitor the use of bonus funds and    could  more effectively
                                    the overall cost effec-
tiveness of the bonus program.
charged prior to completing theirWhen recipients are dis-
                                   obligated service, unearned
bonus payments are lost anj additional
                                        funds must be made
available to recruit and train or reenlist
                                             replacements.
Bonus program highlights

      The 4 bonus reports submitted thus
averaged 78 pages and consisted entirely far to the Committee
length makes it difficult to use the       of raw data. Such
bonuses' effect on solving attraction  reports to monitor the
                                        and retention problems
in critical skills.   We believe the report should include
highlights section summarizing the                           a
                                    rmost significant infor-
mation.   Generally, this would require the services
provide narrative comments on the                     to
                                   bottom line totals of each
format, such as those listed as follows.




                              6
 B-160096


      FORMAT

        1      (Part I)
               Total Enlistments Required
               Total Enlistments Achieved
               Number of Bonuses Commlitted
        1      (Parts IIa and IIb)
               Total Reenlist.mentn.
               Reenlistment Rate
               Number of Bonuses Paid
        2      Number Serving Outside Bonus Skilli
               Percent Serving Outside Bonus Skill
        3      (Parts Ia, Ib, IIa, and IIb)
               Total Discharges - Recoupment Reqruired
               Total Discharges - Recoupment Aot Required
Report fieauency
     The Committee required the Department of Defense
submit the first semiannual report within 60            to
                                              days after
completion of the first 6 months of operation
bonus authority. The initial report included under the new
November 30, 1974, and subsequent reports as   data as of
November 30, 1975, and May 31, 1976.          of May 31, 1975,

      In an August 1974 memorandum, the Assistant
                                                   Secretary
of Defense (Manpower and Reserve Affairs) noted
reporting periods, which end November 30 and      that  these
                                              May  31,  were
not in accordance with normal report periods.
                                                He stated
that the Department of Defense would request
                                              the Congress to
allow submission of these reports concurrent
                                              with established
data collection cycles, following the implementation
Congressional Budget and Impoundment Control            of the
                                              Act  of  1974.
However, the report schedule has not been adjusted.

     We believe the report cycle should be adjusted
coincide with the Federal fiscal year, October      to
September 30, so that reported program results 1 through
                                               can be rec-
onciled with other program information.

Conclusion
     The monitor of each service's bonus program
                                                  reviewed
the drafts of the new report formats and furnished
comparative estimates for preparing the current     us
                                                 semiannual
and proposed annual reports. A breakdown of
                                             these cost
estimates follows.

                               7
B-160096



                                                   Estimazed
                                                   recurring
                                Estimated          maintenance
                 Current        startup cost of    cost of
Service        report cost      proposed report    proposed report
Army              $20,156           Not provided     $30,156
Navy                2,100            $5,161            1,050
Air Force           1,000             7,760            2,500
Marine Corps        3,000           Not provided     Not provided

     Although these estimates may not be precise, we believe
the report preparation cost would be small in comparison to
the large investment in the bonus progranm and the Committee's
teed for better data to monitor this program.

Recommendations

     If new authority to pay enlisted personnel bonuses is
enacted, we recommend that the Committee require the Depart-
ment of Defense to revise the current report.  Specifically,
we recommend that the report

     --be restructured according to the new formats found
       in enclosures II through IV,

     -- provide a highlights section summarizing the
        significant information contained in the report, and

     -- be submitted ennually to coincide with the Federal
        fis3cal year.

DEFICIENCIES IN PRIOR REPORTS

     During our analysis we found several reporting defi-
ciencies which impair the usefulness of the reports to the
Committee as a program-monitoring tool.  These problems
include the failure of some services to report all bonus
recipients serving outside their bonus skill and to report
accurate and complete recoupment information.

Failure to report bonus rs       ants
serving outside their bonr.     ;ill
     A memorandum by the Assistant Secretary of Defense
(Manpower and Reserve Affairs), dated August 12, 1974,
specified that:


                                8
  B-160096



       "The starting date for data
                                     collection will be
       June 1, 1974.  ^ * * Future semi-annual reports
       concerning personnel serving
                                      outside the skill for
       which a bonus was paid and
                                   recoupment
       to all bonuses authorized under          actions relate
       Consequently, complete files      Public  Law 93-277.
       personnel receiving bonuses must be maintained of all
                                    from June 1, 1974."
 Notwithstanding these instructions,
 and Air Force failed to identify       we found that the Navy
 recipients serving outside         and  report all bonus
                             their bonus skills. Since
 recipients are expected to                                bonus
                             serve in their bonus skill
 comparable skill, the Committee
                                  has emphasized that theor a
 practice of assigning personnel
 the intent of the Congress.      outside their skill violates

      We found that the Navy practice
                                        of assigning enlisted
 personnel to general billets
recipients who do not serve    conceals  a large number of
Navy personnel rotate from    in their  bonus  skills.   When
                            sea to shore, it is not always
possible to assign them a shore billet
similar skills.                           requiring the same or
                  The Navy has established about
billets to accommodate these                        5,009 general
Examples of general billet     personnel  while  ashore.
                            assignments include recruiting,
counseling, security, and recreation.
if bonus recipients are Performing        Navy officials said
                                     jobs  specified in author-
ized general billets, they
                            are not reported as serving
side their bonus skill.                                     out-

      The Navy's management information
 identify the number of erlistment         system cannot readily
                                     and reenlistment bonus
 recipients serving in general
                                 billets.
 significant computer reprograming          Navy officials
                                     would be required to said
 retrieve data from personnel
 would enable the Navy to trackand finance center sources that
in which they are serving.        bonus recipients to the skill
                              It  could take up to 3 years to
 implement changes in the personnel
counting systems to develop           distribution and ac-
                              this information. Although
number of bonus recipients                                   the
                            serving in general billets
not be identified, the Navy                                could
                              provided us data which indicates
approximately 525 bonus recipients
                                      are normally assigned
general billets.

     The Air Force has identified
recipients serving outside          and reported only the
                           skills for which bonuses were bonus
during the last 6-month bonus                             paid
this period, which ended May report period. The report for
                              31, 1976, showed that the Air
Force paid reenlistment bonuses
                                 for 45 skills and reported
                                                            24

                               9
 B-160096


 persons as serving outside their bonus skill.
 Air Force had paid reenlistment bonuses for     However, the
                                              90 different
 skills between JLne 1, 1974, and May 31, 1976.
 recipients in the 90 different skills paid       All bonus
                                             should have been
 screened to identify the recipients serving
                                              outside their
 bonus skills as of May 31, 1976.  We believe it is highly
 unlikely that none of the personnel paid a
 maining 45 skills were serving outside theirbonus in the re-
                                               bonus skills.
 Failure to report accurate and
 complete rectupment statistics

      Our analysis of previous reports showed
 Force, Marine Corps, and Navy did not-report that the Air
                                               all the required
 data concerning bonus amounts recouped and
                                             uncollected.
      The Air Force reports submitted to the Committee
 that unearned bonuses were uncollected from              showed
                                              2 of 18 dis-
 charged bonus recipients.   The uncollected amounts for the
remaining 16 recipients were reported as "Unknown."
Force program monitor said action would be               The Air
                                             taken to provide
the required recoupment information in future
                                                 reports.
      The Marine Corps reported that all unearned
                                                    bonuses
required to be recouped from 75 discharged
                                             bonus recipients
had been collected at discharge. However,
                                             discussion with
the bonus program monitor discloseJ that the
Finance and accounting Center reported only Marine Corps
                                              the
required to be recouped, not the amounts actuallyamounts
or uncollected.                                      recouped
                  The Marine Corps monitor confirmed that
the individual pay records needed to compute
recouped and uncollected were available and    the amounts
be taken to provide the required recoupment   that  action would
                                              information in
future bonus reports.

     The Navy Finance 'enter prc-ided us printouts
selective reenlistment bonus recipients who         of 210
                                             were discharged
prior to completing their obligated servide.
                                               We found a
number of cases where discharges and recoupments
                                                  were liot
reported to the Committee, as required.

     We also found that Navy bonus recipients
                                               in identical
discharge categories were reported to the Committee
instances, but not in others.                        in some
                               For example, 28 bonus recipi-
ents were discharged prior to the completion
ments because of substandard performance.     of their enlist-
                                           Recoupment action
is required in these cases, but only 4 of the
ents were included in the Department           bonus recipi-
                                     of Defense reports; 24
were not.

                               10
B-160096



Conclusion

     It is essential that the Committee receive accurate and
complete information to monitor the bonus programs. We
believe the Committee should instruct the Department of
Defense to evaluate each service's data collecting and
reporting procedures to insure that the information in future
bonus reports meets these criteria.



     Officials of the Department of Defense and the services
have informally commented on this report, and their
comments wei-e considered in finalizing it. They generally
concur with our report. We are sending copies of this report
to the Secretary of Defense; the Secretaries of the Army,
Navy, and Air Force; and the Commandant of the Marine Corps.

                                  ee'v   your




                             Comptroller General
                             of the United States
Enclosures - 4




                             11
ENCLOSURE I                                               ENCLOSURE I


                       FORMATS OF THE CURRENT

                            BONUS REPORT



                              FORMAT 1

                       Skills and Bonuses Paid

                        Report Period
                        Service

     Military Bonus                          Number of
       Skill Code           Title         Bonus Recipients


                             FORMAT 2
           Recipients Serving Outside Bonus Specialty

                        As of Date
                        Service

                                         Number Serving
     Military Bonus                          Outside
       Skill Code           Title          Bonus Skill


                             FORMAT 3
                Recipients Discharged Prior to
                 Completing the Bonus Service
                    Obligation and Requiring
                       Recoupment Action

                        Report Period
                        Service

           Reason        Amount          Amount
Military   for           Recoupment      Recouped at      Uncollected
Code       Discharge     Required        Discharge        Amount
 ENCLOSURE II
                                                            ENCLOSURE II


            FORMAT 1 (PART I):       ENLISTMENT BONUS (EB)

                       GOALS AND COMMITMENTS

                           FISCAL YEAR:


                                           Service:


                Total      Total
                enlist-    enlist-
 Critical       ments      ments                        Bonuses Committed
 skill          required   achieved
 (note a)                                                    (note e)
                (note b)   (note c)        EBgoal         Number Amount




Total
                                                 d/                $



a/Changes during fiscal year:        #EB skill added;
  deleted.                                               ##FiB   skill

b/Enlistments needed to maintain authorized
                                            strength level
  for each critical skill.

c/Represents all enlistments, including
                                        individuals who
  received EB and those who did not receive
                                            the bonus.
d/Number of new bonuses approved by the
                                         Assistart Secretary
  of Defense (Manpower and Reserve Affairs)
                                             and funded by
  the Congress for the fiscal year.
e/Payment of EB is contingent on successful
                                             completion of
  training end qualification for the bonus
                                            skill.


                                 2
ENCLOSURE II                                               ENCLOSURE II



FORMAT 1 (PART IIa):     SELECTIVE REENLISTMENT BONUS (SRB)

               ZONE A GOALS kND PAYMENTS (NOTE A)

                           FISCAL YEAR!

                                               Service:



           Number      Total            Reen-
Critical   eligible    reen-            listment           Bonuses paid
skill      to reen-    listments        rate       SRB       (note f)
(note b)   list        (note c)         (note d)   goal    Number Amount




Total                                                e/           $




a/Includes all reenlistments occurring between 21 months and
  6 years of service.

b/Changes during fiscal year:          #SRB skill added;    ##SRB skill
  deleted.

c/Represents all reenlistments in Zone A, whether or not SRB
  was paid.

d/Represents total reenlistments divided by the number
  eligible to reenlist.

e/Number of new bonuses approved by the Assistant Secretary
  of Defense (Manpower and Reserve Affairs) and funded by
  the Congress for the fiscal year.

f/Changes during fiscal year: *award level increased;
  **award level decreased.

                                   3
ENCLOSURE II                                               ENCLOSURE II



   FORMAT 1 (PART IIb):    SELECTIVE REENLISTMENT BONUS (SRB)

               ZONE B GOALS AND PAYMENTS (NOTE A)

                          FISCAL YEAR:

                                                Service:



           Number      Total            Reen-
Critical   eligible    reen-            listment           Bonuses paid
skill      to reen-    listments        rate       SRB       (note f)
(note b)   list        (note c)         (note d)   goal    Number Amount




Total                                                /             $




a/Includes all reenlistments occurring between 6 and 10
  years of service.

b/Changes during fiscal year:          #SRB skill added;   9#SRB
  skill deleted.

c/Represents all reenlistments         in Zone B, whether or not
  SRB was paid.

d/Represents total reenlistments divided by the number
  eligible to reenlist.

e/Number of new bonuses approved by the Assistant Secretary
  of Defense (Manpower and Reserve Affairs) and funded by
  the Congress for the fiscal year.

f/Changes during fiscal year:          *award level increased;
  **award level decreased.

                                   4
ENCLOSURE III                                         ENCLOSURE III



   FORMAT 2:     ENLISTMENT AND SELECTIVE REENLISTMENT BONUS

             RECIPIENTS SERVING OUTSIDE BONUS SKILL

                        END OF FISCAL YEAR:


                                    Service:             (note a)


                                                             Number
                             Number               Number     serving
               Net           serving    Percent   of         in
               cumulative    outside    serving   career     compar-
               bonuses paid bonus       outside   progres-   able
               since 10-1-76 skill      bonus     sions      skills
               (note b)      (note c)   skill     (note d)   (note e)
Enlistment
bonus        (aggregate entry for all EB skills)


Selective
reenlistment
bonus        (aggregate entry for all SRB skills)



a/Navy estimate of:     EB recipients serving in general
                        billets
                        SRB recipients serving in general
                        billets

b/Total members paid the bonus beginning 10-1-76 reduced by
  the number of these members who have been discharged or
  completed their obligated bonus service since 10-1-76.

c/Does rot include those serving in comparable skills or
  those serving in another skill due to career progression.

d/Reclassified in line with normal career progression, such
  as promotion to a more complex skill than that for which
  EB or SRB was paid.

e/Assignments in highly related skills that require about
  the same training are allowed due to distribution problems.
 ENCLOSURE IV                                             ENCLOSURE rI


FORMAT 3 (PART Ia):    ENLISTMENT BONUS RECIPIENTS DISCHARGED
             BEFORE COMPLETION OF SERVICE OBLIGATION

                  RECOUPMENT REQUIRED (NOTE A)

                           FISCAL YEAR:

                                           Service:


Reason               Total         Recoup-    Recouped     Uncollected
for       Number     bonuses       ment       at
discharge discharged awarded                               at
                                   required   discharge    discharge
                       F           $           $
        (aggjate entry for each discharge reason)




Total                      $           $                   $



a/Recoupment is required when discharge is for voluntary
                                                         or
  misconduct reasons.




                               6
ENCLOSURE IV                                             ENCLOSURE IV



FORMAT 3 (PART Ib):     ENLISTMENT BONUS RECIPIENTS DISCHARGED

             BEFORE COMPLETION OF SERVICE OBLIGATION

                  RECOUPMENT NOT REQUIRED (NOTE A)

                            FISCAL YEAR:


                                              Service:



                                             Status at discharge
Reason                       Total                          Unearned
for            Number        bonuses       Bonuses Earned   bonuses
discharge      discharged    awarded       paid    bonuses  (note b)


        (aggregate entry for each discharge reasor)




Total                       $          $          $          $



a/Recoupment is not required when members receive involuntary
  discharges, except for misconduct.

b/Unearned bonus equals total bonus minus earned bonus.




                                  7
ENCLOSURE IV                                            ENCLOSURE IV


FORMAT 3 (PART IIa):     SELECTIVE REENLISTMENT BONUS RECIPIENTS

        DISCHARGED BEFORE COMPLETION OF SERVICE OBLIGATION

                   RECOUPMENT REQJIRED (NOTE A)

                             FISCAL YEAR:

                                                 Service:



Reason                  Total         Recoup-    RecoupzJ    Oncol-
for       Number        bonuses       ment       at          lected at
discharge discharged    awarded       required   discharg_   discharge
                         $            $-                     $.
        (aggregate entry for each discharge reason)




Total                   $             $          $           $



a/Recoupment is required when discharge is for voluntary or
  misconduct reasons.




                                  8
ENCLOSURE IV                                              ENCLOSURE IV



FORMAT 3 (PART IIb):         SELECTIVE REENLISTMENT BONUS RECIPIENTS

        DISCHARGED BEFORE COMPLETION OF SERVICE OBLIGATION

                     RECOUPMENT NOT REQUIRED (NOTE A)

                               FISCAL YEAR:

                                               Service:



                                             Status at discharge
Reason                         Total                        Unearned
for             Lsjmber        bonuses    Bonuses Earned    bonuses
discharge       discharged     awarded    paid    bonuses   (note b)
                                Y         $       $          $


        (ajggreate    entry for each discharge reason)




Total                           $         $       $            $



a/Recoupment is not required when members receive involuntary
  discharges, except for misconduct.

b/Unearned bonus equals total bonus minus earned bonus.




                                     9