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Computation of Cost-of-Living Allowances for Uniformed Personnel Could Be More Accurate

FPCD-82-8 Published: Feb 25, 1982. Publicly Released: Feb 25, 1982.
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Highlights

GAO reviewed the methodology used to compute cost-of-living allowances (COLA's) for federal personnel because there were concerns about its appropriateness.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense The Secretary of Defense should use procedures which insure consistent use of price data in the cost-of-living allowance computations.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Defense The Secretary of Defense should use weighted sale prices to reflect the proportion of purchases made at sale and regular prices.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Defense The Secretary of Defense should discontinue the practice of adjusting cost-of-living allowances in Alaska to reimburse uniformed personnel for special environmental factors. If a transfer allowance is considered necessary, DOD should propose legislation for such an allowance.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Defense The Secretary of Defense should use a scientific sampling system to make living pattern surveys and direct field offices to use the results of living pattern surveys as a basis for selecting outlets for the price surveys.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Defense The Secretary of Defense should revise the price collection schedule to minimize the timelag between base area and cost-of-living allowance area price surveys.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Defense The Secretary of Defense should adopt a spendable income table based on the most recent consumer expenditure survey.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

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Topics

CompensationCost of livingData integrityAllowancesForeign exchange ratesMilitary personnelPrice indexesPricing surveysCost-of-living allowancesSurveys