The Department Can Improve Processes to Ensure Locality Pay Is Accurate

Submitting OIG:

Report Description:

For our audit on U.S. Department of Commerce (Department) locality pay, our objective was to determine whether the Department ensures employees are paid the correct locality pay in accordance with applicable regulations and policy. We found that I. Department personnel did not timely initiate or process changes in employee duty stations and II. the Department could not demonstrate that all teleworking employees reported to the office as required by their telework agreements.

Short / Alternative Report Title:

Date Issued:

Monday, June 3, 2024

Agency Reviewed / Investigated:

Department of Commerce

Submitting OIG-Specific Report Number:

OIG-24-025-A

Component, if applicable:

Office of the Secretary

Location(s):

Agency-Wide

Type of Report:

Audit

Questioned Costs:

Funds for Better Use:

$42,985

Number of Recommendations:

Report updated under NDAA 5274:

View Document:

Attachment	Size
OIG-24-025.pdf	5.03 MB

Additional Details Link:

https://www.oig.doc.gov/Pages/The-Department-Can-Improve-Processes-to-Ensure-Loc…

Recommendation Number	Recommendation Status	Significant Recommendation
1	Open	Yes
1. We recommend that the Chief Financial Officer and Assistant Secretary for Administration implement internal controls to ensure that changes in duty stations are initiated and processed timely.
2	Open	Yes
2. We recommend that the Chief Financial Officer and Assistant Secretary for Administration review duty station changes processed since the return to office to determine whether untimely initiation or processing resulted in incorrect employee locality pay. Recover any excess salary amounts paid to employees in accordance with Departmental policy.
3	Open	Yes
3. We recommend that the Chief Financial Officer and Assistant Secretary for Administration regularly track and determine whether all teleworking Department employees are meeting the schedule requirement for 2 days in the office per pay period. For employees failing to meet this requirement take action to ensure that the agency has assigned the proper locality pay and telework or remote work status to the employees and prevent or address any overpayment of salary amounts paid to the employees in accordance with Departmental policy.
4	Open	Yes
4. We recommend that the Chief Financial Officer and Assistant Secretary for Administration implement internal controls to ensure employees are following the requirements of their telework or remote work agreements and temporary exceptions are properly documented.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

Open

Yes

1. We recommend that the Chief Financial Officer and Assistant Secretary for Administration implement internal controls to ensure that changes in duty stations are initiated and processed timely.

Open

Yes

2. We recommend that the Chief Financial Officer and Assistant Secretary for Administration review duty station changes processed since the return to office to determine whether untimely initiation or processing resulted in incorrect employee locality pay. Recover any excess salary amounts paid to employees in accordance with Departmental policy.

Open

Yes