DoD Civilian Pay Bdgeting Process

Submitting OIG:

Department of Defense OIG

Date Issued:

Thursday, January 3, 2019

Agency Reviewed / Investigated:

Department of Defense

Submitting OIG-Specific Report Number:

DODIG-2019-041

Component, if applicable:

Under Secretary of Defense Comptroller/Chief Financial Officer

Location(s):

Agency-Wide

Type of Report:

Audit

Questioned Costs:

Funds for Better Use:

Number of Recommendations:

View Document:

Attachment	Size
DODOIG-2019-041.pdf	7.35 MB

Recommendation Number	Recommendation Status	Significant Recommendation
D-2019-0041-D000AG-0001-0001.a	Open	No
Rec. 1.a: The DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer implement additional internal controls to document and communicate procedures to current and future budget officials across the Department of Defense. Specifically, the DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer update the DoD Financial Management Regulation, volume 2A, chapters 1 and 3, to include: 1) recurring instructions from the Budget Estimate Submission guidance and President's Budget guidance that are not unique to a particular year; 2) a guide from the Defense Finance and Accounting Service's payroll system's gross reconciliation codes to the OP-8 and OP-32 budget exhibit line items and personnel categories; 3) further clarification for calculating full-time equivalents and straight-time hours worked; and 4) a requirement to include variable costs in the Services' and Defense agencies' budget requests.
D-2019-0041-D000AG-0001-0001.b	Open	No
Rec. 1.b: The DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer implement additional internal controls to document and communicate procedures to current and future budget officials across the Department of Defense. Specifically, the DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer develop a civilian pay budget analyst career path and require Department of Defense civilian pay budget development training as part of the Department of Defense Financial Management certification program.
D-2019-0041-D000AG-0001-0001.c	Open	No
Rec. 1.c: The DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer implement additional internal controls to document and communicate procedures to current and future budget officials across the Department of Defense. Specifically, the DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer require its analysts to document their procedures, lessons learned, and standard lists of reports and analyses to mitigate the risks of having corporate knowledge limited to a single person or losing the corporate knowledge if key analysts vacate positions, in accordance with GAO 14 704G, "Standards for Internal Control in the Federal Government," September 2014.
D-2019-0041-D000AG-0001-0001.d	Open	No
Rec. 1.d: The DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer implement additional internal controls to document and communicate procedures to current and future budget officials across the Department of Defense. Specifically, the DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer require the Services and Defense agencies to document their budget development procedures, calculations, and lessons learned to mitigate the risks of having the corporate knowledge limited to a single person or losing the corporate knowledge if key officials vacate positions, in accordance with GAO 14 704G, "Standards for Internal Control in the Federal Government," September 2014.
D-2019-0041-D000AG-0001-0001.e	Open	No
Rec. 1.e: The DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer implement additional internal controls to document and communicate procedures to current and future budget officials across the Department of Defense. Specifically, the DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer develop and require a budget submission checklist to provide additional assurance that the Services and Defense agencies accurately and completely develop their budgets in accordance with the Office of Management and Budget Circular No. A-11 and the DoD Financial Management Regulation. The checklist should include directions and reminders for the Services and Defense agencies, including, but not limited to, the following: 1. Comparison of the printed budget exhibits to the data submitted to the Office of the Under Secretary of Defense (Comptroller); 2. Verification that the data submitted in the Program Resource Collection Process system and the Comptroller Information System match and that the data in the OP-8, OP-5, and OP-32 budget exhibits match; 3. Verification that the Service consulted the annual update of OMB Circular No. A-11; 4. Comparison of the actual civilian pay costs reported in the OP-8 budget exhibit by object class code to payroll data obtained from Defense Finance and Accounting Service; 5. Verification that the budgeted variable costs reported in the OP-8 budget exhibit were consistent with the actual variable costs reported in the execution data submitted to Congress; 6. Verification that the Office of Management and Budget pay raises were correctly applied to the first full pay period of the calendar year, instead of the fiscal year; and 7. Verification of compliance with all special instructions and non-recurring requirements that are explained in the annual Budget Estimate Submission and President's Budget guidance.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

D-2019-0041-D000AG-0001-0001.a

Open

Rec. 1.a: The DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer implement additional internal controls to document and communicate procedures to current and future budget officials across the Department of Defense. Specifically, the DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer update the DoD Financial Management Regulation, volume 2A, chapters 1 and 3, to include: 1) recurring instructions from the Budget Estimate Submission guidance and President's Budget guidance that are not unique to a particular year; 2) a guide from the Defense Finance and Accounting Service's payroll system's gross reconciliation codes to the OP-8 and OP-32 budget exhibit line items and personnel categories; 3) further clarification for calculating full-time equivalents and straight-time hours worked; and 4) a requirement to include variable costs in the Services' and Defense agencies' budget requests.

D-2019-0041-D000AG-0001-0001.b

Open

Rec. 1.b: The DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer implement additional internal controls to document and communicate procedures to current and future budget officials across the Department of Defense. Specifically, the DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer develop a civilian pay budget analyst career path and require Department of Defense civilian pay budget development training as part of the Department of Defense Financial Management certification program.

D-2019-0041-D000AG-0001-0001.c

Open