The Department Can Improve Processes to Ensure Locality Pay Is Accurate

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Date Issued

Monday, June 3, 2024

Submitting OIG

Department of Commerce OIG

Other Participating OIGs

Department of Commerce OIG

Agencies Reviewed/Investigated

Department of Commerce

Components

Office of the Secretary

Report Number

OIG-24-025-A

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.

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

Questioned Costs

Funds for Better Use

$42,985

Additional Details

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

Open Recommendations

This report has 4 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
1	Yes	$0	$0
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	Yes	$0	$42,985
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	Yes	$0	$0
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	Yes	$0	$0
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.