COMFLTFORCOM FIELD EXAMINATION GROUP

1. COMFLTFORCOMFIELD EXAMINATION GROUP Antonio G. Parris FEGLANT DIR

2. DISBURSING/PERSONNELON-SITE EXAMINATION PROGRAM ADMINISTERED BY • COMMANDER, U.S. FLEET FORCES COMMAND CHARTER • NAVSUP P-485, VOL II - NAVY APPENDIX 34

3. DISBURSING/PERSONNELON-SITE EXAMINATION PROGRAM EXAMINATION FREQUENCY: • 12 -18 Months afloat and 18 – 24 months ashore • Whenever there are signs of training deficiencies/problems EXAMINATION: • Approximately 3 Examiners • 5-10 Workdays • Varies according to activity size TERRITORY • EAST COAST CONUS-OUTCONUS – SHIPS /SHORE

4. DISBURSING/PERSONNELON-SITE EXAMINATION PROGRAM MISSION • CONDUCT DISBURSING OFFICER’S ACCOUNTABILITY REVIEW TO ASSESS THE EFFICIENCY AND RELIABILITY FOR FINANCIAL RESOURCES. • EXAMINE MILITARY PAY ACCOUNTS AND TRAVEL CLAIMS • EVALUATE THE PHYSICAL SECURITY AND PROVIDE ASSESSMENT OF INTERNAL CONTROL PROCEDURES OF THE DISBURSING OFFICE • CONDUCT TRAINING TO MINIMIZE AND PREVENT RECURRENCE OF DEFICIENCIES NOTED DURING THE REVIEW.

5. FY 2012 THROU JULY STATISTICS ASHORE / AFLOAT TOTAL COMMANDS/ACTIVITIES AUDITED 47 2 45 • TOTAL PAY/ALLOWANCE VALUE OF ERRORS $3,514,725. $916,729. $2,597,996. • TOTAL TRAVEL VALUE OF ERRORS 124,730. $115,165. $10,565. • TOTAL CASH FUNDS INVENTORIED $6,676.106. • TOTAL VALUE OF ERRORS $3,639,455. (PAY AND TRAVEL) • LEAVE NOT CHARGED $935,479. * POTENTIAL LOSS TO THE GOVERNMENT (LEAVE NOT POSTED TO MMPA ) * (BASED ON RANDOM SELECTION OF APPROXIMATELY 10%-20% OF RECORDS)

6. BAH-OHA INTERNAL CONTROLS • COMNAVSURFOR SAN DIEGO MSG R 191945Z MAY 06 AND RECENT FRAUD ISSUES • CO’S/OICs WILL DESIGNATE TRUSTED AGENTS FOR REVIEW • SCENARIOS: • 1. SERVICE MEMBER CLAIMING DEPS LIVE IN AN AREA WITH A BAH RATE HIGHER THAN THE PDS a. VERIFY PAGE 2 WITH DEPENDENTS TRAVEL IF MEMBER CLAIMS DEPENDENTS RELOCATED b. REQUEST BILL OF LADEN OR DITTY MOVE CLAIM c. REQUEST OR VERIFY ANY OF THE FOLLOWING: 1. CHILDREN SCHOOL RECORDS 2. TELEPHONE RECORDS 3. SPOUSE PAY STUBS 4. LEASE AGREEMENT 5. LEAVE ADDRESS OF MEMBER 6. SGLI: BENEFICIARY IS A PERSON OTHER THAN “SPOUSE” 2. SHAM MARRIAGES

7. BAH/OHA INTERNAL CONTROLS a. REQUEST/VERIFY ANY OF THE FOLLOWING: 1. CERTIFIED COPY OF THE MARRIAGE CERTIFICATE WITH A RAISED SEAL. 2. ALLOTMENT TO SPOUSE? 3. JOINT BANK ACCOUNT WITH SPOUSE? 4. MEMBER MAINTAINING A RESIDENCE AT THE PDS WHILE SPOUSE LIVES OUTSIDE THE AREA 5. MEMBER CONTINUALLY TAKES LEAVE TO AN ADDRESS OTHER THAN SPOUSE ADDRESS ON PAGE 2 6. EMERGENCY CONTACT IS SOME ONE OTHER THAN SPOUSE 7. SGLI BENEFICIARY NOT THE SPOUSE 3. INSIDER FRAUD: INSTITUTE STRONG INTERNAL CONTROLS AND AUDIT PROCEDURES LIMITING THE CAPABILITY OF PERSONNEL TO CREATE AND RELEASE PAY IMPACT DOCUMENTS

8. BAH/OHA INTERNAL CONTROLS • BAH/OHA SINGLE: • PERIODIC REVIEW OF BEQ/BOQ LISTING • LEASE AGREEMENT 1. WHENEVER THERE IS A CHANGE TO ANY DATA ON THE DD FORM 2367

9. FY 2012 EXAMINATION STATISTICS SPECIFICS LEAVE • SEPARATION/ORDINARAY LEAVE NOT CHARGED • COMMANDS NOT SUBMITTING PART 1 IN TIMELY MANNER • ACCRUED LEAVE PAID-LUMP SUM LEAVE NAVETS/OSVETS LEAVE PAID NOT POSTED TO MBRS MMPA UPON RE-ENTRY TO ACTIVE DUTY BAS/MEAL DEDUCTION • MBRS SUBSISTING IN KING (MEAL PASS) AND NO MEAL DEDUCTION • BAS NOT CREDITED/ADJUSTED FOR PERIODS OF TAD BAH • BAH BASED ON DEPENDENTS LOCATION • BAH WHILE ASSIGNED TO GOVT QTRS/BEQ/BOQ • BAH PCS NOT CREDITED - ACCESSION TRAVEL- WRONG ZIP FSA • TAD IN EXCESS OF 30 DAYS PLUS TRAVEL TIME • PCS TRAVEL WITH TDY ENROUTE IN EXCESS OF 30 DAYS • FSA NOT TERMINATED AFTER RETURN FROM DEPLOYMENT

10. FY 2012 EXAMINATION STATISTICS SPECIFICS TRAVEL TIME • INCORRECT COMPUTATION OF TRAVEL TIME-MIXED MODES CSP(PREMIUM): SIGNIFICANT NUMBER OF UNDERPAYMENTS PROCEED TIME • PCS FROM OVERSEAS/SHIP WITH TDY ENROUTE CSP • MEMBERS PERFORMING TAD ASHORE AND CSP NOT TERMINATED AFTER 30 DAYS CLOTHING ALLOWANCE • RESERVIST RECALLED TO ACTIVE DUTY-OFFICER AND ENLISTED NOT PAID FORFEITURE OF PAY • INCORRECT COMPUTATION OF FOP (RIR SUSPENDED) • FOP NOT DEDUCTED

11. FY 2012 EXAMINATION STATISTICS SPECIFICS TRAVEL PAY COMPUTATION • PER DIEM DURING PERIOD OF LEAVE • DISLOCATION ALLOWANCE/TLE- • ERRONEOUS COMPUTATION OF DEPENDENTS TRAVEL • CONCURRENT TRAVEL OF MEMBER AND DEPS WITH TWO POC’S • MIXED MODES OF TRAVEL

12. CONDUCTING THE EXAMINATION • Pre-audit at Field Exam Group site – EDVR • MMPA-LES REVIEW • Unannounced • Letter of Introduction • Preliminary meeting with CO/OIC • Establish LIAISON - MILPAY/MILPERS • Focus of examination/WORK AREA • TEMPORARILY secure FISCAL section if cash inventory is required

13. SCOPEOFTHEAUDIT ACCOUNTABILITY CASH VERIFICATION DISBURSING OFFICER/DEPUTY ALL AGENTS WITH CASH ON HAND ALL SAFES CERTIFICATION OF CASH COUNT 2657/2665 BLANK TREASURY CHECKS INVENTORY– BULK/WORKING STOCKS UNDELIVERABLE CHECK ISSUE LOG

14. FISCAL Daily Statement of Accountability Checking Account Returns Retained Files Deputies/Agents Verification APPOINTMENT LETTERS 2665/1081 DAILY WORKING PROCEDURES Cash Management Cash held at personal risk Check cashing procedures Debit Vouchers Deposits

15. General Management PRA/ADMIN account maintenance Security Safes Combination changes Alarms/Emergency lighting Cash Verification Team (CVT) Duties/Responsibilities Frequency Report to the Commanding Officer

16. ON-SITE EXAMINATION CONDUCTING THE REVIEW • Random selection of UICs serviced by PSD/CSD • Request OIC/LPO inform selected sites • Provide list to LPO of required files for distribution to selected sites • Receipt for and provide security for records • Issue Field Examination Notices for individual Pay and Allowance and Travel errors uncovered during review • Assign Error Responsibility (MILPAY/MILPERS) to Accountable Section

17. Pay account and ESR Review Leave records/LogsUnit punishment recordsTAD cost/no cost files/Tango log/ATOSEDVR/ODCRPRA/ADMIN AccountsSubsistence records (meal pass log, etc.)Hazardous Duty files (NATOPS, diving records, etc.) Travel Un-liquidated travel claims (PCS/TAD) Travel advance policy Travel claim computation

18. SYSTEMS REVIEW DMO Security WINIATS Security Up to date changes System generated reports GRADE ASSIGNMENT

19. REPORTING RESULTS • Daily appraisal to OIC/MILPAY & MILPERS Supervisors • EXIT DEBRIEF–CO/OIC and responsible Office Staff • FINAL GRADE

20. GRADING SYSTEM • TOTAL MAXIMUM POINTS POSSIBLE (MPP) IF EVERY ITEM IS GRADED = 100 POINTS • ANY ITEM/TOPIC NOT GRADED BECAUSE IT DOES NOT APPLY IS ZEROED OUT IN THE MPP. • THE GRADE FOR EACH CATEGORY AND THE OVERALL GRADE IS BASED ON A PERCENTAGE OF POINTS EARNED MINUS REPEAT POINTS ASSESSED (PE-R) DIVIDED BY THE MPP • GRADE ASSIGNMENT: • 69% AND BELOW ………….. UNSATISFACTORY • 70% - 89% ………….. SATISFACTORY • 90%- 95% ………….. EXCELLENT • 96%-100% ………….. OUTSTANDING • REPEAT ITEMS OF ERRORS WILL BE REFLECTED AS A DEDUCTION FROM THE TOTAL (PE) AT THE END OF EACH CATEGORY. THE AMOUNT OF THE DEDUCTION WILL BE ASSESSED AT 10% OF THE TOTAL (MPP) FOR THE TOPIC REGARDLESS OF THE NUMBER OF ITEMS CONSIDERED TO BE REPEAT DISCREPANCIES FROM THE PREVIOUS AUDIT. CONSECUTIVE REPEAT ITEMS OF ERROR WILL NO LONGER BE ADDITIONALLY PENALIZED • EXAMPLE: • DAILY ACCOUNTABILITY MMP = 3.0 • THREE REPEAT DISCREPANCIES • DEDUCT .30 (3.0X.10%) ONLY FROM TOTAL PE AT THE END OF ACCOUNTABILITY CATEGORY • CRITICAL ITEMS ARE ASSIGNED MORE MPP THEREBY ELIMINATING THE NEED TO ASSESS ANY ADDITIONAL GRADING PENALTIES

21. ASSISTANCE • Assist visits provided upon Commanding Officer’s request • Follow-up exam; Activities awarded an ‘Unsatisfactory’ grade, during their examination. Follow-up exam within 90 days of original exam (if feasible) • Walk-in visits Disbursing/Personnel Officers/Disbursing Clerks/Personnelmen • Phone inquiries • Reply to messages, e-mail and fax inquiries

22. COMMANDER FLEET FORCES COMMANDFIELD EXAMINATION GROUPNORFOLK VA(N41D) POC: ANTONIO G. PARRIS-email antonio.parris@navy.mil DIRECTOR DSN 646-2618 COMM (757) 443-2618

23. PHONE INQUIRIES NORFOLK VA DSN 646-2306 COMM (757) 443-2306 JAX FIELD DSN 942-3110 OFFICE COMM (904) 542-3110 EMAIL: field.exam.group@.navy.mil PACFLT ON-SITE EXAM AND ASSISTANCE DIVISION SAN DIEGO-NICAROR FUERTE DSN 522-1570/3861

24. QUESTIONS?