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GAO-06-384R 1 (2006-04-27)

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       Accountability * Integrity * Reliability
United States Government Accountability Office
Washington, DC 20548



         April 27, 2006

         The Honorable Tom Davis
         Chairman
         Committee on Government Reform
         House of Representatives

         Subject: Military Pay: Inadequate Controls for Stopping Overpayments of Hostile
         Fire and Hardship Duty Pay to Over 200 Sick or Injured Army National Guard
         and Army Reserve Soldiers Assigned to Fort Bragg

         Over the past several years, we have reported' on significant pay problems
         experienced by mobilized Army National Guard and Army Reserve (Army Guard and
         Reserve) soldiers in the wake of the September 11, 2001, terrorist attack. These
         reports included examples of hundreds of soldiers receiving inaccurate and untimely
         payroll payments due to a paper-intensive, error-prone pay process and the lack of
         integrated pay and personnel systems. In response to our reports, the Department of
         Defense (DOD) has taken some action to improve controls designed to pay Army
         Guard and Reserve soldiers accurately and on time, especially those who had become
         sick or injured in the line of duty.

         This report responds to your request that we investigate the allegation that 37 Army
         Guard and Reserve soldiers assigned to the Medical Retention Processing Unit
         (MRPU) at Fort Bragg, North Carolina, were overpaid for hostile fire and hardship
         duty pay while in an outpatient status.2 Our objectives were to determine (1) whether
         the allegations were true, and if so, whether the pay issues were more widespread at
         Fort Bragg and (2) the key causes of the overpayments and the resulting impact on
         soldiers and their families.



         'GAO, Military Pay: Gaps in Pay and Benefits Create Financial Hardships for Injured Army
         National Guard and Reserve Soldiers, GAO-05-125 and GAO-05-322T (Washington, D.C.: Feb. 17,
         2005); Army National Guard: Inefficient, Error-Prone Process Results in Travel Reimbursement
         Problems For Mobilized Soldiers, GAO-05-79 (Washington, D.C.: Jan. 31, 2005) and GAO-05-400T
         (Washington, D.C.: Mar. 16, 2005); Military Pay: Army Reserve Soldiers Mobilized to Active Duty
         Experienced Significant Pay Problems, GAO-04-911 (Washington, D.C: Aug. 20, 2004) and GAO-04-
         990T (Washington, D.C.: July 20, 2004); and Military Pay: Army National Guard Personnel Mobilized
         to Active Duty Experienced Significant Pay Problems, GAO-04-413T (Washington, D.C.: Jan. 28, 2004)
         and GAO-04-89 (Washington, D.C.: Nov. 13, 2003).
         2 For the purposes of this report, outpatient means a soldier who is being medically evaluated for
         specialized treatment. This may include surgery, which would require hospitalization at a later date.


GAO-06-384R Controls Fail to Stop Overpayments

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