Mr. Luther Bragg Auditor General of the Navy (Acting) 28 May 2015 Naval Audit Service Current Audit Topics
Mr. Luther Bragg
Auditor General of the Navy (Acting)
28 May 2015
Naval Audit ServiceCurrent Audit Topics
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Agenda
• Resources
• Workload Distribution
• Real Property
• Personal Property
• Funeral Honors
• Overtime Pay
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$30
$35
$40
$45
$50
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Navy Funding & NAVAUDSVC End Strength
($
in
mil
lio
ns)
FY1994 – 2014 Navy Funding
NAVAUDSVC End Strength (as of April 2015)
Location #
Washington, DC 253
Norfolk, VA 27
San Diego, CA 34
Total On Board 314
• Currently hiring to replenish resources
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Distribution of FY14 Resources by Functional Area
Contracting & Procurement
12%
Anti-Terrorism/Force Protection
1%
Environmental Protection &Safety
6%
Facilities & Real Property Management
10%
Force Readiness & Fleet Operations
2%Financial Management
16%
General & Miscellaneous1%
Healthcare & Member/Family Support
Services4%
Manpower & Personnel
15%
Logistics, Supply & Maintenance Operations
3%
IT Management & Deployment
8%
Intelligence & Classified Programs
1%Assists
16%
Systems Acquisition & Acquisition Logistics
5%
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Real Property Inventory
• Audits conducted in Marianas, Hawaii, multiple Atlantic regions
• Results
– Inaccurate and incomplete data
• 65% accurate; 21% inaccurate; 13% could not be verified
– Systemic Issues
• Unclear roles and responsibilities for real property inventory
management and oversight
• No standardized training program
• No tracking public private housing inventory
• No method for valuation
– Impact to the Navy’s facility sustainment requirement for budget
projections
– Per SECDEF, increased emphasis on the accountability of assets
is necessary to achieve full audit readiness
– Recommendations addressed the systemic issues
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Personal Property Accountability
• Findings
– Policies and Standard Operating procedures were not
comprehensive enough to provide adequate guidance
– Unclear reporting requirements
• Results
– Lack of accountability over personal property
• Areas for improving Personal Property accountability
– Increasing HQ, Echelons III & IV oversight and monitoring;
– Conducting proper inventory reconciliations, including
independent (not by custodians) and timely verification;
– Ensuring delegation letters are signed and current, and improving
communication between Personal Property Personnel; and
– Identifying sensitive, pilferable, and mission-critical assets
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Funeral Honors Duty for Navy Reservists
• Funeral honors signifies the United States’ gratitude
for veterans’ honorable service and consists of a
detail of at least two or more for the funeral
• Improper payments to reservists of $1 million for
claimed travel associated with funeral honors duty
– Lack of supporting documentation for payments (travel,
duty, and training)
– No attestation requirements for drills
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Overtime Pay*
• Location 1: $149.5M (FY 2011-2012)
– 83% of employees received overtime pay
– 14 employees earned over $100,000 in overtime pay
for selected time period
– 2 employees earned over $150,000 in overtime pay for
selected time period
• Location 2: $76.5M (FY 2011-2012)
– 86% of employees received overtime pay
– 7 employees earned over $100,000 in overtime pay for
selected time period
– 1 employee earned over $150,000 in overtime pay for
selected time period
*Based on pay data from 10 October 2010 – 22 September 2012
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Overtime Pay, cont.
• Internal Control Weaknesses
– Insufficient audit trail for overtime approval
– Employees exceeded limits for consecutive days and
cumulative hours worked
– Inappropriate employee time and attendance attestation
procedures
– Time and attendance personnel not trained or certified
– Potentially invalid Collective Bargaining Agreements