HEW's Centralized Payroll System

FGMSD-76-68: Published: Aug 24, 1976. Publicly Released: Aug 24, 1976.

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In a series of reviews of the Department of Health, Education, and Welfare's (HEW) centralized payroll system, GAO examined the HEW procedures and practices for processing undeliverable payroll checks returned to the Department of the Treasury for cancellation, remailing, or reissuance.

Hundreds of Wage and Tax Statements and pay records for 1974 were erroneous because adjustments for canceled checks were not recorded in the proper year or were recorded twice. W-2 tax forms were also found to be erroneous because pay records were incorrect. Because of needed revisions to computer programs for processing, canceled check adjustments were not made for about 7 months. As a result, HEW made no canceled check adjustments from December 1974 to July 1975.

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