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FGMSD-80-69 1 (1980-07-17)

handle is hein.gao/gaobabatt0001 and id is 1 raw text is:                                                                 112 1s



      M M  UUNITED STATES GENERAL ACCOUNTING OFFICE
    4WASHINGTON, D.C. 20548


DIVISION OF FINA4CIAL AND
GENERAL MANAGEMENT STUOMS

    B-199187                                       JULY 17,1980



    Dr. Joan S. Wallace                                  I   111
    Assistant Secretary
      for Administration
    Department of Agriculture                             112795


    Dear Dr. Wallace:

         Subject: i Improvements Are Needed in the Department of
                   A9griculture's Centralized Payroll Syste -m
                   (FGMSD-80-69)

         Weaknesses in the U.S. Department of Agriculture's
    (USDA's) centralized payroll system--which pays out approxi-
    mately $2.3 billion annually--have caused pay problems such
    as duplicate, late, or erroneous payments, and incorrect de-
    ductions for health care premiums. A redesigned payroll sys-
    tem is scheduled for implementation in late 1980. However,
    the new system will not correct many of the current pay prob-
    lems which result from inadequate controls over manual proc-
    esses. To correct these problems, better controls are needed
    over

         --time and attendance (T&A) documents,

         --manually prepared payrolls,

         --health care enrollment records, and

         --installation security.

         The payroll/personnel system is operated by the National
    Finance Center (NFC) in New Orleans, Louisiana. This system,
    which was the first activity to be centralized by USDA at the
    Finance Center has operated under the same basic design for
    the past 17 years. The system, which we have approved, annu-
    ally pays about 130,000 employees in almost 15,000 USDA
    offices.


(906450)

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