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089292 1 (1970-10-07)

handle is hein.gao/gaobacvfg0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE IREGIONAL OFFICE 143 FEDERAL OFFICE BU[LDING, 50 FULTON STREET SAN FRANCISCO, CALIFORNIA 94102 IN REPLY REFER TO- 84823 OCT 7 1970 LM089292 Commanding Officer Mare Island Naval Shipyard Vallejo, California 94592 Dear Sir: We made a review of the propriety of severance payments t-e. ,separatd Mare Island and Hun ers Point employees. Our review, completed at both shtpyards on July 8, 1970, was made pursuant to the Budget and Accounting Act, 1921 (31 U.S.C. 53), and the Accounting and Auditing Act, 1950 (31 U.S.C. 67). Because the Comptroller, Mare Island Naval Shipyard is responsible for processing and certifying the severance payoll for Hunters Point, we are including our findings at both locations in this letter. We reviewed the procedures for determining whether an employee is entitled to severance pay and for computing the amount due to him. Our review included selected samples of separated employees at both shipyards in order to evaluate the effectiveness of the procedures and the accuracy of the computations. We believe that Mare Island should revise its procedure for beginning severance payments and Hunters Point should revise its procedures for main- taining and reviewing the information in an employee's Official Personnel Folder (OPF). We discussed our findings and recommenda- tions with installation officials and are listing them below for your information. Procedure for Beginning Severance Payments When an employee is separated on any day other than the end of a pay period, he is not included on the severance payroll until the beginning of the next week. The severance pay applicable to the partial pay period is paid to the employee when his severance pay fund is exhausted or when he is re-employed by the Federal Government. The Federal Personnel Manual, Supplement 990-2, Subchapter 7, 87-6 states that: u n m lllu u l t l llllll l n_3uaeanmmmueim mnmlmuuuiuu

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