In  addition, for one unit, these pay problems resulted in largely erroneous  debts totaling $1.6 million. Nonetheless,  we found the inaccurate, late, and missing pays and associated erroneous  debts found during our current audit had a profound financial impact on  individual soldiers and their families. Significant Weaknesses in Processes over Mobilized Army Guard Pay

Procedural requirements, particularly in light of the potentially hundreds of  organizations and thousands of personnel involved, were not well  understood or consistently applied with respect to determining (1) the  actions required to make timely, accurate active duty pays to mobilized  Army Guard soldiers and (2) the component responsible, among Army  Guard, active Army, and DFAS, for taking the required actions. These lengthy processing delays  resulted in late payroll payments to deployed soldiers. Human Capital Issues Affect Ability to Pay Mobilized Army Guard Soldiers Promptly and Accurately

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. Insufficient Numbers of Military Pay Processing Personnel

Our audit identified concerns with the numbers of knowledgeable  personnel dedicated to entering and processing active duty pays and  allowances to mobilized Army Guard soldiers. Systems Problems Hamper Prompt and Accurate Army Guard Pay

Several systems issues were significant factors impeding accurate and  timely payroll payments to mobilized Army Guard soldiers, including    the lack of an integrated or effectively interfaced pay system with both  the personnel and order-writing systems,  limitations in DJMS-RC processing capabilities, and  ineffective system edits of payments and debts. The personal toll that these pay  problems have had on mobilized soldiers and their families cannot be  readily measured, but clearly may have a profound effect on reenlistment  and retention. Instead, we used a  case study approach to provide a more detailed perspective of the nature of  pay deficiencies in the three key areas of processes, people (human  capital), and systems. DOD’s  comments are reprinted in appendix VIII.
Why GAO Did This Study

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.

What GAO Found

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.