Military Pay: Army National Guard Personnel Mobilized to Active Duty Experienced Significant Pay Problems
GAO-04-89
Published: Nov 13, 2003. Publicly Released: Nov 17, 2003.
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Highlights
In light of the recent mobilizations associated with the war on terrorism and homeland security, GAO was asked to determine if controls used to pay mobilized Army Guard personnel provided assurance that such pays were accurate and timely. GAO's audit used a case study approach to focus on controls over three key areas: processes, people (human capital), and systems.
The existing processes and controls used to provide pay and allowances to mobilized Army Guard personnel are so cumbersome and complex that neither DOD nor, more importantly, the mobilized Army Guard soldiers could be reasonably assured of timely and accurate payroll payments. Weaknesses in these processes and controls resulted in over- and underpayments and late active duty payments and, in some cases, largely erroneous debt assessments to mobilized Army Guard personnel. The end result of these pay problems is to severely constrain DOD's ability to provide active duty pay to these personnel, many of whom were risking their lives in combat in Iraq and Afghanistan. In addition, these pay problems have had a profound financial impact on individual soldiers and their families. For example, many soldiers and their families were required to spend considerable time, sometimes while the soldiers were deployed in remote, combat environments overseas, seeking corrections to active duty pays and allowances. The pay process, involving potentially hundreds of DOD, Army, and Army Guard organizations and thousands of personnel, was not well understood or consistently applied with respect to determining (1) the actions required to make timely, accurate pays to mobilized soldiers, and (2) the organization responsible for taking the required actions. With respect to human capital, we found weaknesses including (1) insufficient resources allocated to pay processing, (2) inadequate training related to existing policies and procedures, and (3) poor customer service. Several systems issues were also a significant factor impeding accurate and timely payroll payments to mobilized Army Guard soldiers, including (1) non-integrated systems, (2) limitations in system processing capabilities, and (3) ineffective system edits.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
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| Department of Defense | The Secretary of Defense should direct the Secretary of the Army, in conjunction with the Under Secretary of Defense (Comptroller), to establish a unified set of policies and procedures for all Army Guard, Army, and DFAS personnel to follow for ensuring active duty pays for Army Guard personnel mobilized to active duty. |
Army and DOD published an expanded and updated centralized set of guidance in June 2004 entitled, "Finance Mobilization and Demobilization Standing Operating Procedure", that articulates specific responsibilities of servicing finance activities. Army and DFAS also conducted compliance reviews at all designated mobilization/demobilization stations that identified additional compliance actions needing attention and provided expert assistance to mobilization/demobilization station personnel. DFAS and Army Reserve pay experts also conducted site visits to in-theater finance offices where pay-related problems had been identified by our review to provide training and expert assistance.
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| Department of Defense | The Secretary of Defense should direct the Secretary of the Army, in conjunction with the Under Secretary of Defense (Comptroller), to establish performance measures for obtaining supporting documentation and processing pay transactions (for example, no more than 5 days would seem reasonable). | In November 2003, GAO reported that written requirements did not exist with respect to the maximum amount of time that should elapse between the receipt by the responsible Army Guard or Army pay office of proper documentation and processing the related pay transaction through the pay system. While some of the Army Guard or Army pay offices we audited had established informal processing targets, for example, 3 days, we also found numerous instances in which available documentation indicated lengthy delays in processing pay transactions after pay offices received supporting documentation. These lengthy processing delays resulted in late payroll payments to deployed soldiers. We recommended...
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| Department of Defense | The Secretary of Defense should direct the Secretary of the Army, in conjunction with the Under Secretary of Defense (Comptroller), to establish who is accountable for stopping active duty pays for soldiers who return home earlier than their units. |
Hardship Duty Pay-Location was automated in DJMS-RC on 3/26/2004. In addition, the ARNG has built tables in the Jumps Standard Terminal Input System (JUSTIS), which allow the remaining non-automated entitlement transactions to be triggered and built automatically each month. A standard flyer was published and distributed in January 2004 and is available on the web. The ARNG has also developed and published a Soldier's Guide for Mobilization Finance, which is currently being distributed. The Defense Military Pay Office System (DMO) and JUSTIS were changed to required a remark with any miscellaneous credit input. An SOP on the structure of these remarks has been published.
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| Department of Defense | The Secretary of Defense should direct the Secretary of the Army, in conjunction with the Under Secretary of Defense (Comptroller), to clarify the policies and procedures for how to properly amend active duty orders, including medical extensions. |
In June 2003, Army Reserve Components (National Guard Bureau and Army Reserve Command) and DFAS published revised guidance regarding processing medical extensions. In September 2003, Army added an alert notice to its order writing input system to warn the operator processing a tour cancellation of possible consequences of canceling instead of amending an order. These changes should improve the Army's processes for amending orders for mobilized Guardsmen, including those on medical extensions, and reduce, or eliminate, the incidents of financial hardship on soldiers that improper cancellation of the orders cause.
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| Department of Defense | The Secretary of Defense should direct the Secretary of the Army, in conjunction with the Under Secretary of Defense (Comptroller), to require Army Guard commands and unit commanders to carry out complete monthly pay and personnel records reconciliations and take necessary actions to correct any pay and personnel record mismatches found each month. |
DOD published National Guard Regulation 37-104-3 in May 2004 and issued a Memorandum from the Director, Army National Guard to all states and territories emphasizing the command and unit commander responsibilities to use command pay management reports. Improved use of these management reports as required in these recent publications should improve the accuracy of pay data and enable earlier detection of pay and personnel record anomalies.
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| Department of Defense | The Secretary of Defense should direct the Secretary of the Army, in conjunction with the Under Secretary of Defense (Comptroller), to update policies and procedures to reflect current legal and DOD administrative requirements with respect to active duty pays and allowances and transaction processing requirements for mobilized Army Guard soldiers. | In July 2004, DFAS and Army published revised comprehensive procedures to articulate specific detailed procedures for servicing finance activities to use when processing active duty pay for mobilized Reserve Component soldiers. Also in June 2005, Army issued a revised Army Regulation (AR) 37-104-4, Military Pay and Allowances Policy, to define Army-unique military pay policy for entitlements, allotments, and deductions outlined in the current DOD financial management regulation on military pay. In addition, DOD updated the Financial Management Regulation on Family Separation Allowance that, among other updates, deleted out-of-date references to Basic Allowance for Quarters. In addition,...
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| Department of Defense | The Secretary of Defense should direct the Secretary of the Army, in conjunction with the Under Secretary of Defense (Comptroller), to consider expanding the scope of the existing memorandum of understanding between DFAS and the Army concerning the provision of resources to support surge processing at mobilization and demobilization sites to include providing additional resources to support surge processing for pay start and stop transaction requirements at Army Guard home stations during initial soldier readiness programs. |
National Guard has staffed a 20 person centralized mobilization team to alleviate workload during surge workload periods, such as unit mobilizations, at field locations and provide assistance/backfill for critical resource shortfalls. In addition, the National Guard established a requirements contract to permit each USPFO to hire up to three contractors for mobilized pay support augmentation based on mission requirements. Providing for additional resources to support home station initial mobilization workload processing requirements should alleviate the number of military pay problems occurring during the initial mobilization stage.
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| Department of Defense | The Secretary of Defense should direct the Secretary of the Army, in conjunction with the Under Secretary of Defense (Comptroller), to determine whether issues concerning resource allocations for the military pay operations identified at our case study units exist at all 54 USPFOs, and if so, take appropriate actions to address these issues. |
National Guard has staffed a 20 person centralized mobilization team to alleviate workload during surge workload periods, such as unit mobilizations, at field locations and provide assistance/backfill for critical resource shortfalls. In addition, the National Guard established a requirements contract to permit each USPFO to hire up to three contractors for mobilized pay support augmentation based on mission requirements. Providing for additional resources to support home station initial mobilization workload processing requirements should alleviate the number of military pay problems occurring during the initial mobilization stage.
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| Department of Defense | The Secretary of Defense should direct the Secretary of the Army, in conjunction with the Under Secretary of Defense (Comptroller), to determine whether issues concerning relatively low-graded military pay technicians identified at our case study units exist at all 54 USPFOs, and if so, take appropriate actions to address these issues. |
DOD stated that a recent review of grade levels in the USPFOs' Comptroller sections validated that current grade levels for military pay technicians were correct under OPM standards.
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| Department of Defense | The Secretary of Defense should direct the Secretary of the Army, in conjunction with the Under Secretary of Defense (Comptroller), to modify existing training policies and procedures to require all USPFO and active Army pay and finance personnel responsible for entering pay transactions for mobilized Army Guard soldiers to receive appropriate training upon assuming such duties. | In January 2004, Army revised its training procedures and implemented training on active duty pay eligibility and processing requirements for pay technicians assigned to service mobilized Army soldiers. Army began presenting the course to pay technicians at Fort McCoy (60 soldiers), Fort Polk (15 soldiers), and Germany (38 soldiers). On December 27, 2004, the Chief, National Guard Bureau issued a memorandum to the Adjutants General of all National Guard activities that mandated that all company level commanders of units that are notified of possible mobilization receive the Commander's Finance Training prior to reporting to unit mobilization site. The Chief also mandated that all States...
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| Department of Defense | The Secretary of Defense should direct the Secretary of the Army, in conjunction with the Under Secretary of Defense (Comptroller), to require unit commanders to receive training on the importance of adhering to requirements to conduct annual pay support documentation reviews and carry out monthly reconciliations. |
DOD published National Guard Regulation 37-104-3 in October 2003 and issued a Memorandum from the Director, Army National Guard in May 2004 to all states and territories requiring unit commanders to use command pay management reports to identify and correct pay problems.
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| Department of Defense | The Secretary of Defense should direct the Secretary of the Army, in conjunction with the Under Secretary of Defense (Comptroller), to establish an ongoing mechanism to monitor the quality and completion of training for both pay and finance personnel and unit commanders. | In our November 2003 report (GAO-04-89) on "Military Pay: Army National Guard Personnel Mobilized to Active Duty Experienced Significant Pay Problems", we identified instances in which Army National Guard and active Army pay and finance personnel were not knowledgeable on the extensive eligibility and processing requirements for active duty pays to mobilized Army National Guard soldiers. The report cited a particular concern with the lack of appropriate training for active Army pay and finance personnel at overseas finance locations responsible for entering pay transactions for assigned mobilized Army National Guard soldiers. For example, the report showed that 4 of the 7 units in our...
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| Department of Defense | The Secretary of Defense should direct the Secretary of the Army, in conjunction with the Under Secretary of Defense (Comptroller), to identify and evaluate options for improving customer service provided to mobilized Army Guard soldiers by providing improved procedures for informing soldiers of their pay and allowance entitlements throughout their active duty mobilizations. | In our November 2003 report (GAO-04-89) on "Military Pay: Army National Guard Personnel Mobilized to Active Duty Experienced Significant Pay Problems", we found that Army National Guard soldiers mobilized to active duty expressed confusion over their pays, allowances, and tax benefits associated with their active duty tours. Accordingly, we recommended that the Secretary of Defense direct the Secretary of the Army, in conjunction with the Under Secretary of Defense (Comptroller), to identify and evaluate options for improving customer service provided to mobilized Army Guard soldiers by improving the information available to soldiers on their pay, allowance, and tax benefit entitlements...
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| Department of Defense | The Secretary of Defense should direct the Secretary of the Army, in conjunction with the Under Secretary of Defense (Comptroller), to identify and evaluate options for improving customer service provided to mobilized Army Guard soldiers to ensure a single, well-advertised source for soldiers and their families to access for customer service for any pay problems. | In our November 2003 report, "Military Pay: Army National Guard Personnel Mobilized to Active Duty Experienced Significant Pay Problems" (GAO-04-89), we reported that ARNG soldiers expressed confusion over where to go with problems or inquiries concerning their active duty pays. We recommended that the Department of Defense take action to provide a single source for ARNG soldiers to obtain customer service for any problems or concerns with pay associated with their mobilization to active duty. In February 2004, the Director, ARNG directed that the ARNG Financial Services Center serve as the Pay Ombudsman (ARNG contact point) for ARNG soldiers with pay problems or concerns. The ARNG also...
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| Department of Defense | The Secretary of Defense should direct the Secretary of the Army, in conjunction with the Under Secretary of Defense (Comptroller), to review the pay problems we identified at our six case study units to identify and resolve any outstanding pay issues for the affected soldiers. |
DOD has taken corrective actions including collection actions and completion of waiver requests and appeals. A contact team personally contacted over 700 soldiers currently or previously assigned to case study units. Additionally, audits were done of the accounts of soldiers with identified problems who were no longer assigned to the units to ensure corrective actions were taken. There are no remaining payment or debt input transactions required.
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| Department of Defense | The Secretary of Defense should direct the Secretary of the Army, in conjunction with the Under Secretary of Defense (Comptroller), to evaluate the feasibility of using the personnel-to-pay interface as a means to proactively alert pay personnel of actions needed to start entitled active duty pays and allowances. |
Army National Guard expanded the interface between the Jumps Standard Terminal Input System (JUSTIS), the Standard Installation/Division Personnel Reporting System-National Guard (SIDPERS-NG), and the Automated Fund Control Order System (AFCOS) to pull in mobilization related orders and data. With the expansion of the pay and personnel system interfaces, the Army should improve the timeliness and accuracy of pay and allowance payments to active Army National Guard soldiers.
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| Department of Defense | The Secretary of Defense should direct the Secretary of the Army, in conjunction with the Under Secretary of Defense (Comptroller), to evaluate the feasibility of automating some or all of the current manual monthly pays, including special duty assignment pay, foreign language proficiency pay, hardship duty pay, and HALO pay. |
In March 2004, DFAS implemented a systems change to the pay system (Defense Joint Military Pay System - Reserve Component) to automatically pay hardship duty pay for all mobilized Army Reserve Component soldiers upon receipt of documentation showing soldiers' arrival at a designated hardship duty location. DFAS and Army opted to initiate automatic pay for hardship duty pay because this component of pay is currently utilized for all soldiers mobilized to the Iraq/Kuwait/Afghanistan Theater. DFAS and Army opted not to incur the costs to convert other pay components because they were not as extensively utilized as the hardship duty pay component.
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| Department of Defense | The Secretary of Defense should direct the Secretary of the Army, in conjunction with the Under Secretary of Defense (Comptroller), to evaluate the feasibility of eliminating the use of the "other credits" for processing hardship duty (designated areas), HALO pay, and special duty assignment pay, and instead establish a separate component of pay for each type of pay. | In December 2003, DFAS and Army modified the DJMS-RC pay system to require an explanatory remark with any Army Reserve Component soldier's Leave and Earnings Statement (LES) containing an "other credit" transaction. On December 4, 2003, the Army published a standing operating procedure providing standard language to use in explanatory remarks associated with an "other credit" transaction. In March 2004, DFAS implemented a systems change to the pay system (Defense Joint Military Pay System - Reserve Component) to automatically pay hardship duty pay for all mobilized Army Reserve Component soldiers upon receipt of documentation showing soldiers' arrival at a designated hardship duty...
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| Department of Defense | The Secretary of Defense should direct the Secretary of the Army, in conjunction with the Under Secretary of Defense (Comptroller), to evaluate the feasibility of using the JUSTIS warning screen to help eliminate inadvertent omissions of required monthly manual pay inputs. |
In September 2003, Army National Guard implemented changes to its soldier pay processing system to automatically warn pay administrators attempting to process a transaction to amend orders to cancel an active duty tour that continuing to process the transactions will result in reversing all active duty pays received under the canceled orders and result in establishing a debt for these amounts.
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| Department of Defense | The Secretary of Defense should direct the Secretary of the Army, in conjunction with the Under Secretary of Defense (Comptroller), to evaluate the feasibility of redesigning Leave and Earnings Statements to provide soldiers with a clear explanation of all pay and allowances received so that they can readily determine if they received all and only entitled pays. | In our November 2003 report on mobilized Army National Guard soldiers' pay problems (GAO-04-89), we reported that Army National Guard soldiers had difficulty using their leave and earnings statements (LES) to determine if they received all entitled active duty pays and allowances. For example, we found lump sum payments appeared on soldiers' LES as "other credits" without adequate explanation. We recommended that the Army, in conjunction with DOD, evaluate the feasibility of redesigning the LES to provide soldiers with a clear explanation of all pay and allowances received so that mobilized soldiers can readily determine if they received all and only entitled active duty pays and...
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| Department of Defense | The Secretary of Defense should direct the Secretary of the Army, in conjunction with the Under Secretary of Defense (Comptroller), to evaluate the feasibility of establishing an edit check and requiring approval before processing any debt assessments above a specified dollar amount. | During our review of Controls Over Military Pay to Mobilized Army National Guard soldiers (GAO-04-89 and GAO-04-990T), GAO found a number of instances in which pay administrative personnel, confused over on how to properly amend active duty orders, created major pay problems (including largely erroneous debts of about $1.6 million)for mobilized soldiers. Specifically, for one Colorado Special Forces unit, GAO found improper actions taken by the Army Guard military pay officials in an attempt to amend 34 soldiers' orders resulted in improperly reversing the active duty pays and allowances the soldiers received for 11 of the 12 months they were deployed on active duty in Afghanistan....
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| Department of Defense | The Secretary of Defense should direct the Secretary of the Army, in conjunction with the Under Secretary of Defense (Comptroller), to evaluate the feasibility of establishing an edit check and requiring approval before processing any payments above a specified dollar amount. | On October 7, 2004, the Director, Army Military Pay Operations published policy and procedures for identifying soldiers who received payments in excess of specified amounts in a monthly exception report. The monthly reports will indicate soldiers who received a mid-month payment in excess of $4,000 or an end of month payment in excess of $7,000. Pay technicians in the Military Pay Operations Operational Control Office are required to review the pay account for each soldier listed in the report and annotate and explain on the report why the soldier received the excess amount. If determined to be an incorrect payment, the analyst is required to email a request to the Disbursing Office...
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| Department of Defense | The Secretary of Defense should direct the Secretary of the Army, in conjunction with the Under Secretary of Defense (Comptroller), as part of the effort currently under way to reform DOD's pay and personnel systems--referred to as DIMHRS--incorporate a complete understanding of the Army Guard pay problems as documented in this report into the requirements development for this system. |
In fiscal year 2005, the Defense Finance and Accounting Service (DFAS) provided the Joint Requirements and Integration Office (the office responsible for the development of Defense Integrated Military Human Resources System (DIMRS)) pay and pay-related personnel requirements that considered the control deficiencies found in our Army National Guard case studies.
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| Department of Defense | The Secretary of Defense should direct the Secretary of the Army, in conjunction with the Under Secretary of Defense (Comptroller), in developing DIMHRS, consider a complete reengineering of the processes and controls and ensure that this reengineering effort deals not only with the systems aspect of the problems we identified, but also with the human capital and process aspects. |
DOD concurred with this recommendation, but did not take action to ensure that DIMHRS is reenginered to address process and human capital issues, as well as the systems concerns addressed in this GAO report.
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Erroneous paymentsHazardous military-duty payInternal controlsMilitary compensationMilitary payMilitary personnelMobilizationStrategic mobility forcesTimelinessU.S. Army