Department of Health and Human Services 
OFFICE OF 
INSPECTOR GENERAL 
THE PROGRAM SUPPORT CENTERS 
PERSONNEL SERVICE: 
CUSTOMER SERVICE EVALUATION 
JUNE GIBBS BROWN 
Inspector General 
MARCH 2000 
OEI-09-98-00140  OFFICE OF INSPECTOR GENERAL 
The mission of the Office of Inspector General (OIG), as mandated by Public Law 95-452, is to 
protect the integrity of the Department of Health and Human Services programs as well as the 
health and welfare of beneficiaries served by them.  This statutory mission is carried out through a 
nationwide program of audits, investigations, inspections, sanctions, and fraud alerts.  The 
Inspector General informs the Secretary of program and management problems and recommends 
legislative, regulatory, and operational approaches to correct them. 
Office of Evaluation and Inspections 
The Office of Evaluation and Inspections (OEI) is one of several components of the Office of 
Inspector General.  It conducts short-term management and program evaluations (called 
inspections) that focus on issues of concern to the Department, the Congress, and the public.  The 
inspection reports provide findings and recommendations on the efficiency, vulnerability, and 
effectiveness of departmental programs. 
OEI's San Francisco office prepared this report under the direction of Kaye D. Kidwell, Regional 
Inspector General, and Paul A. Gottlober, Deputy Regional Inspector General.  Principal OEI 
staff included: 
REGION  HEADQUARTERS

Steven Zerebecki, Lead Analyst  Linda  Hall, Program Specialist

Jay Davidson, Program Analyst 
Rob Gibbons, Program Analyst 
Deborah Harvey, Program Analyst 
Scott Hutchison, Program Analyst 
Thomas Purvis, Program Analyst 
Lori Stickel, Program Analyst 
To obtain copies of this report, please call the San Francisco Regional Office at (415)437-7900. 
Reports are also available on the World Wide Web at our home page address: 
http://www.dhhs.gov/progorg/oei  E X E C U T I V E   S U M M A R Y  
PURPOSE 
To (1) assess customer satisfaction with the Program Support Centers (PSC) payroll service and 
(2) evaluate the efficiency and accuracy of the PSCs processing of personnel actions that affect 
payroll. 
BACKGROUND 
The PSC was formed in 1995 by combining the administrative functions formerly located in the 
Office of the Secretary, the Office of the Assistant Secretary for Health, the Health Resources and 
Services Administration, the Indian Health Service, and the Food and Drug Administration.  The 
PSC provides services in three broad business areas:  human resources, financial management, and 
administrative operations.  Payroll and personnel services are included in the Human Resources 
Service Branch. 
The PSC operates an automated payroll service for all of the Departments 60,000 employees in 
13 agencies.  Payroll services include, but are not limited to, electronically processing all 
personnel-related actions for each employee, paying each employee correctly biweekly or monthly 
and timely with other pay-related functions, and managing current and historical personnel and 
payroll data on all employees. 
The PSC provides personnel services for the Administration on Aging, the Office of the Secretary, 
and the PSC itself.  Personnel services that affect payroll include, but are not limited to, 
recruitment and employment relations, classification and compensation, human resources, 
information systems, and payroll servicing. 
To evaluate customer satisfaction, we conducted three surveys of 448 respondents by telephone 
or in-person, using standardized survey instruments.  We compared PSC personnel customers to 
non-PSC customers and reviewed the Official Personnel Files and transaction processes for a 
select group of respondents. 
We conducted this inspection over a 1-year period.  During that time, we kept 
PSC informed of our progress and findings.  As we conducted the inspection, 
PSC advised us of changes it was making and intended to make to be more 
responsive to its clients. 
PSC  Personnel Customer Service Evaluation  )))))))))))  OEI-09-98-00140 
1  FINDINGS 
Personnel transaction error rates reported by PSC and Non-PSC customers were 
significant but not statistically different 
Employees in both of our sample populations, new employees and employees who submitted 
personnel transactions that affect payroll, reported errors in their personnel transactions.  While 
PSC customers reported errors in 13 percent of their transactions, non-PSC customers reported 
errors in 9 percent of all personnel transactions.  The 4 percent difference between the two groups 
was not statistically significant.  However, we found statistically significant differences between 
the two groups in other indicators of customer satisfaction, such as the accuracy of earnings and 
leave statements.  In addition, we found that new employees experienced more payroll problems 
than existing employees who submitted an individual personnel transaction that affected payroll. 
PSC customers were less satisfied than non-PSC customers 
PSC customers, both new employees and employees who submitted personnel transactions that 
affected payroll, were less satisfied with personnel services than non-PSC customers. 
Administrative officers who are PSC customers ranked personnel services lower in terms of 
overall quality and timeliness than non-PSC customers. 
Processing delays accounted for the most customer dissatisfaction 
Almost one-half of the problems that employees reported were attributed to slow processing. 
New employees often reported delays and problems with their first paycheck and earnings-and-
leave statements.  Both administrative officers and new employees complained that corrections of 
payroll inaccuracies were especially slow. 
To improve customer satisfaction, PSC revised its personnel staffing and 
organization 
The PSCs personnel service has improved in recent months.  Administrative officers reported 
improved satisfaction due to the reorganization of PSCs personnel division, including the 
relocation of staff to downtown Washington, D.C.  New employee satisfaction also has improved. 
Vulnerabilities persist in some key processes 
The PSC does not date stamp and log incoming employee requests.  The Official Personnel Files 
(OPFs) maintained by PSC are sometimes incomplete or contain inappropriate information. 
IMPACT,  PSCs automated personnel and payroll system, is outdated and does not retain data 
on the identity of operators who change addresses and social security numbers on savings bonds 
issued from employee salary allotments. 
PSC  Personnel Customer Service Evaluation  )))))))))))  OEI-09-98-00140 
2  RECOMMENDATIONS 
While PSCs personnel service customer satisfaction lagged behind that of other HHS personnel 
units, we believe PSC has taken some steps to improve its service.  We recommend that PSC 
continue to improve the customer-service focus of its personnel service.  In addition, we 
recommend that PSC take the following specific actions: 
1.  establish timeliness standards for processing payroll-related personnel actions, 
2.  expand its help desk model of customer assistance, 
3.  begin to date stamp and log employee requests, 
4.  maintain more complete and accurate OPFs, 
5.  continue plans to replace the outdated IMPACT system, and 
6. 	 assure that the software that replaces IMPACT identifies staff who make changes to the 
systems data. 
AGENCY RESPONSE 
In response to the recommendations in our draft report, PSC reports that it has put systems in 
place to insure quality personnel service.  The PSC reports having implemented service standards 
including timeliness standards to improve personnel transaction processing times.  According to 
PSC, HHS employee requests are now being logged and date stamped, and in most cases requests 
are entered into the payroll system as soon as they are received from customers.  Additionally, 
PSC reports that in calendar year 2000 it will audit its personnel customers OPFs and begin to 
implement a new software system for personnel transaction processing . 
This inspection was conducted in accordance with the Quality Standards for Inspections 
issued by the Presidents Council on Integrity and Efficiency.  During the course of this 
inspection, we collected and analyzed personal and confidential information concerning 
Department employees. We took all reasonable precautions to prevent the misuse of this 
personal data. Some of the personal data we collected may be covered by the Privacy Act 
(P.L. 95-579).  The Privacy Act provides criminal penalties for any Federal employee 
PSC  Personnel Customer Service Evaluation  )))))))))))  OEI-09-98-00140 
3  T A B L E   O F   C O N T E N T S  
EXECUTIVE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

INTRODUCTION  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Purpose  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

FINDINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Transaction processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Customer satisfaction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  10

Processing delays . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Improved customer relations  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Vulnerabilities persist . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

RECOMMENDATIONS  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  17

AGENCY RESPONSE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  18

APPENDICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  19

A:  Table 1:  Sample Sizes and Response Rates  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

B:  Table 2:  Confidence Intervals for Selected Statistics  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

PSC  Personnel Customer Service Evaluation  )))))))))))  OEI-09-98-00140 
4  I N T R O D U C T I O N  
PURPOSE 
To (1) assess customer satisfaction with the Program Support Centers (PSC) payroll service and 
(2) evaluate the efficiency and accuracy of the PSCs processing of personnel actions that affect 
payroll. 
BACKGROUND 
The PSC was formed in 1995 by combining the administrative functions formerly located in the 
Office of the Secretary, the Office of the Assistant Secretary for Health, the Health Resources and 
Services Administration, the Indian Health Service, and the Food and Drug Administration of the 
Department of Health and Human Services (HHS).  The PSC provides services in three broad 
business areas:  human resources, financial management, and administrative operations.  Personnel 
and payroll services are included in the Human Resources Service Branch. 
Envisioned as a business enterprise, the PSCs mission is to provide the Department and other 
Federal agencies with administrative support services on a cost-effective, competitive, 
fee-for-service basis.1  Using fee schedules, the PSC contracts with customer agencies ( i.e., 
Department components) to provide various administrative services.  The PSC2 received 
approximately $31.6 million for personnel and payroll services for fiscal year 1998, and it projects 
payments of approximately $19.5 million for fiscal year 1999.3  The decrease in payments is the 
result primarily of the Social Security Administrations move to another servicing agency4 plus the 
completion of a computer modernization project. 
Payroll services include, but are not limited to: 
!  electronically processing all personnel-related actions for each employee, 
!  paying each employee correctly biweekly or monthly and timely with other pay-related 
functions, and 
!  managing current and historical personnel and payroll data on all employees.5 
1Program Support Center, Fiscal Year 1998 Business Plan. 
2We refer to the Human Resources Service as the PSC throughout this report. 
3PSC website (http://www.psc.gov) 
4The PSC also processed payroll for all Social Security Administration employees until 
April 1998. 
5Program Support Center, 1999 Justification of Estimates for Appropriations Committees. 
PSC  Personnel Customer Service Evaluation  )))))))))))  OEI-09-98-00140 
5  The PSC operates an automated payroll service for all of the Departments 60,000 employees in

13 agencies:

!  Office of the Secretary (composed of 10 sub-offices),

!  Administration for Children and Families,

!  Administration on Aging,

!  Agency for Health Care Policy and Research,

!  Agency for Toxic Substances and Disease Registry,

!  Centers for Disease Control and Prevention,

!  Food and Drug Administration,

!  Health Care Financing Administration,

!  Health Resources and Services Administration,

!  Indian Health Service,

!  National Institutes of Health,

!  Program Support Center, and

!  Substance Abuse and Mental Health Services Administration.6

The PSC also provides personnel services for the Office of the Secretary, the Administration on

Aging, and the PSC itself.  Personnel services that affect payroll include, but are not limited to:

!  entry on duty processing,

!  classification and compensation,

!  human resource information systems, and

!  payroll servicing.

Other Reviews 
The Office of Inspector General (OIG) completed an audit report in July 1997 of the PSCs 
automated payroll system.  The audit included an inventory of payroll transactions and a sample 
of payroll files to test the automated system controls.  The OIG concluded that no computational 
errors were in the sample population of payroll payments made to HHS employees in fiscal year 
1996.7 
In April 1999, the OIG issued an inspection report titled, Personnel Service Options: Exploring 
the Possibilities (OEI-09-98-00141).  The OIG found that PSCs charges to the Office of 
Secretary of DHHS for personnel and payroll service were reasonable compared to what other 
DHHS agencies spent on internal personnel operations. 
6The PSC also processed payroll for all Social Security Administration employees until 
April 1998. 
7Office of Inspector General, Agreed-Upon Procedures Report on the Department of Health and Human 
Services Payroll System, Summary Memorandum, A-17-96-00010, July 1997. 
PSC  Personnel Customer Service Evaluation  )))))))))))  OEI-09-98-00140 
6  The Office of Merit Systems Oversight and Effectiveness within the U.S. Office of Personnel 
Management (OPM) evaluated the Departments human resource management program in fiscal 
year 1999.  This evaluation is part of a government-wide effort to identify (1) compliance issues, 
(2) common findings, and (3) best practices among operating divisions.  The OPM is conducting 
agency-focused reviews to help meet mission goals through more effective recruitment, 
development, and use of employees and to gather information to improve Federal human 
resource systems and programs.8 
METHODOLOGY 
The scope of this inspection was limited to the experiences and satisfaction of customers (i.e., 
Department employees and agencies) that use PSCs Human Resource Service.  We compared the 
experience and satisfaction of PSCs personnel customers with the experience and satisfaction of 
customers serviced by other HHS personnel units.  Throughout this report, we refer to the former 
as PSC customers and the latter as non-PSC customers.  At the time of our inspection, PSC 
customers accounted for approximately 7 percent of all HHS employees. 
Customer experience and satisfaction 
We conducted four customer satisfaction surveys via telephone or in-person using standardized 
survey instruments.  In total, we interviewed 488 respondents. 
Survey #1: 	 HHS Employees   Interviews were conducted February through April 1999. 
We selected a random sample of employees who initiated personnel transactions that 
affect payroll.  We stratified the sample into two groups:  PSC customers and non-
PSC customers.  We asked all respondents to report their experience and satisfaction 
with a specific transaction that was processed on their behalf from October 1, 1998 
through December 31, 1998.  We also asked them about their  their experience and 
satisfaction with personnel services in general.  See appendix A for details on sample 
sizes and response rates. 
Survey #2:	 New HHS employees  Interviews were conducted February through April 1999. 
We selected a sample of all employees who entered on duty to their current 
employing agency from October 1, 1998 through December 31, 1998. We 
stratified the sample into two sub-groups:  PSC customers and non-PSC customers. 
We asked all respondents to report their experience and satisfaction with the entry-
on-duty process and with personnel services in general.  See appendix A for details 
on sample sizes and response rates. 
8Office of Personnel Management, Office of Merit Systems Oversight and Effectiveness Briefing Charts. 
PSC  Personnel Customer Service Evaluation  )))))))))))  OEI-09-98-00140 
7  Survey #3:	 New OIG employees  Interviews were conducted in May 1999. 
In addition to the new HHS employees (which included some OIG employees), we 
interviewed all OIG employees who entered on duty from March 1, 1999 to May 9, 
1999.  We asked all respondents to report their experience and satisfaction with the 
entry-on-duty process and with personnel services in general up to the date of our 
interview.  See appendix A for details on sample sizes and response rates. 
Survey #4: 	 Administrative Officers  Interviews were conducted May through June 1999. 
We compiled a population of HHS administrative and personnel staff (both 
headquarters and regional offices) who regularly interact with the PSC for personnel 
and/or payroll services.  We stratified the population into two sub-groups:  PSC 
customers and non-PSC customers.  We asked all respondents to report their 
experience and satisfaction with personnel services up to the date of our interview. 
See appendix A for details on sample sizes and response rates. 
Personnel-case-file review and PSC workflow review 
We reviewed the Official Personnel Files (OPFs) and examined the transaction processes for 
selected respondents from surveys #1 , #2, and #3.  We focused on evidence of timeliness and 
accuracy in their transactions.  The file reviews were conducted in June 1999 and included all 
documents that were present in the files at that time.  In total, we reviewed 53 OPFs. 
This inspection was conducted in accordance with the Quality Standards for InspectionsE
issued by the Presidents Council on Integrity and Efficiency.  During the course of this 
inspection, we collected and analyzed personal and confidential information concerning 
Department employees. We took all reasonable precautions to prevent the misuse of this 
personal data. Some of the personal data we collected may be covered by the Privacy Act 
(P.L. 95-579).  The Privacy Act provides criminal penalties for any Federal employee 
PSC  Personnel Customer Service Evaluation  )))))))))))  OEI-09-98-00140 
8  F I N D I N G S  
We conducted this inspection over a 1-year period.  During that time, we kept 
PSC informed of our progress and findings.  As we conducted the inspection, 
PSC advised us of changes it was making and intended to make to be more 
responsive to its clients. 
Personnel transaction error rates reported by PSC 
and non-PSC customers were significant but not statistically 
different 
Employees in both of our sample populations, new employees and employees who submitted 
personnel transactions that affect payroll, reported errors in their personnel transactions.  While 
PSC customers reported errors in 13 percent of their transactions, non-PSC customers reported 
errors in 9 percent of all personnel transactions.  The 4 percent difference between the two groups 
was not statistically significant.  However, we found statistically significant differences between 
the two groups in other indicators of customer satisfaction, such as the accuracy of earnings and 
leave statements.  In addition, we found that new employees experienced more payroll problems 
than existing employees who submit an individual personnel transaction that affects payroll. 
Employees reported low error rates for individual personnel transactions that 
affect payroll 
According to PSC and non-PSC  Transaction types: Employee reported errors 
employee customers, 85 percent of 
Transaction type  Frequency in 
all transactions were processed 
sample 
correctly.  Of the remainder, 
Start/change health benefits  4 
slightly more than 10 percent were 
Promotion  3 
problematic and 
Termination  3 
5 percent were not characterized. 
Start/change/transfer Thrift Savings data  3 
In our file review of PSC  Change in savings allotment  3 
customers who reported a  Change in work hours or duty station  2 
transaction problem, we found that  Federal tax withholding  1 
21 percent of their problems were  Stop allotment  1 
confirmed as processing errors.  Start/change bond allotment  1 
The remaining 79 percent either  Conversion to excepted appointment  1 
were not supported by existing  Transfer of leave data  1 
paperwork or the files were not  Total reported problems  23 
complete enough to verify or refute 
the perceived error. 
PSC  Personnel Customer Service Evaluation  )))))))))))  OEI-09-98-00140 
9  New employees who are PSC customers reported more payroll problems than 
non-PSC customers 
While fewer than one-quarter of the new employees who are non-PSC customers reported 
inaccuracies, more than 40 percent who are PSC customers reported inaccurate earnings-and-
leave statements within the first 6 to 7 months 
Chart 1  of employment.  (See chart 1.)  New employees 
All new HHS employees:  reported errors in four basic transaction 
Innacurate earnings-and-leave 
categories (i.e., health benefits, leave, life 
statements 
insurance, and tax-withholding) in addition to 
41%  several other categories.  New employees who 
are PSC customers experienced more health-
23% 
benefit and tax-withholding problems than non-
PSC customers.  However, employees in both 
groups had difficulty obtaining accurate leave 
balances.  Many of the leave problems were 
attributed to delays in the transfer of leave data 
PSC customers  Non-PSC customers 
from other Federal agencies. 
We reviewed the files of more than half of the new employees who are PSC customers who 
reported a problem.  Only 22 percent of their problems could be confirmed as processing errors. 
The remaining 78 percent of problems either were not supported by existing paperwork or the 
files were not complete enough to confirm or refute the reported error. 
PSC customers were less satisfied than non-PSC customers 
Almost one-half of PSC customers who submitted payroll transactions were either somewhat or 
not at all satisfied with their personnel service.  They reported that PSC staff were not responsive 
to their requests and inquiries.  In addition, the 
dissatisfied employees said that PSCs personnel service  Chart 2 
was too slow in processing employee requests.  All HHS employees: Satisfaction 
However, one dissatisfied employee conceded that PSC  with personnel services 
83% 
is improving, chiefly as a result of personnel staff 
relocating to offices in downtown Washington, D.C. 
54% 
46% 
In comparison, 17 percent of the HHS employees who 
are non-PSC customers reported that they were either  17% 
somewhat or not at all satisfied with their service. 
See chart 2 for the satisfaction levels of employees who 
very satisfied or  somewhat satisfied 
submitted transactions in the fourth quarter of 1998. 
satisfied  or not at all satisfied 
PSC customers  Non-PSC customers 
PSC  Personnel Customer Service Evaluation  )))))))))))  OEI-09-98-00140 
10  New employees who are PSC customers were 
less satisfied with personnel services 
Chart 3 
New employees who are PSC customers were less  New employee satisfaction 
satisfied and complained more about the entry-on-duty  with the EOD process 
process and other personnel services than non-PSC 
72%  80% 
customers.  Their most common complaint was that 
they were not paid on time.  While our review revealed 
that only 22 percent of the new employees complaints, 
28% 
including late pay, are attributed to personnel  20% 
processing errors, new employees generally felt that 
personnel inefficiencies were at the root of their 
very satisfied or  somewhat or not at all 
personnel problems.  They also reported that their 
satisfied  satisfied 
orientation, including explanations of the forms that 
PSC customers  Non-PSC customers 
they needed to complete, was deficient.  Some new 
employees reported that too much 
Chart 4 
responsibility is 
New employee ranking 
of personnel services 
given to their administrative officers 
79% 
during orientation, particularly when 
69% 
they are located in regional or field 
offices, far removed from the expertise 
of PSCs personnel staff.  One new 
30% 
employee reported that PSC was 
18% 
particularly diligent in the steps leading 
1%  3% 
up to her appointment.  After she 
reported for work, however, her agency 
excellent or good  fair or poor  don't know	
forbade her contact with PSC, insisting
PSC customers  Non-PSC customers 
that she talk to her agencys 
administrative staff who would contact 
PSC personnel on her behalf. 
Administrative officers who are PSC customers ranked their personnel service 
lower non-PSC customers 
Fewer than 40 percent of administrative officers who are PSC customers ranked the overall 
quality of their personnel service as either good or very good compared to 84 percent of non-PSC 
customers.  The PSC customers complained that PSC personnel staff are difficult to reach and 
that they often lose paperwork that is sent to them.  The administrative officers located in regional 
and field offices complained that reaching PSC staff by phone and e-mail is especially difficult. 
As a result of the PSC reorganization of 1995, HHS regions lost many of their personnel staff, 
making it necessary for regional administrative officers to work with headquarters PSC staff.  In 
addition, many administrative officers have assumed the duties for which they once relied on local 
personnel experts. 
PSC  Personnel Customer Service Evaluation  )))))))))))  OEI-09-98-00140 
11  Chart 5 
All adminstrative officers: 

Overall quality of personnel services

84% 
28%  38% 
13%  11%  20% 
4% 
1% 
poor or very poor  adequate  good or very good  don't know /recall or did not 
PSC customers  Non-PSC customers  ask
Administrative officers who are PSC customers ranked timeliness much lower than non-PSC 
customers.  Approximately one quarter ranked PSCs timeliness as good or very good, while 
approximately three quarters of administrative officers who are non-PSC customers ranked their 
personnel offices good or very good.  The PSC customers believed that PSC is understaffed.  As 
a result,  personnel and payroll service was slow, particularly for corrections of personnel actions 
that affect payroll. 
Chart 6 
All administrative officers: 
Timeliness of personnel services 
74% 
36%  28% 
15%  7%  19% 20%
0% 
poor or very poor  adequate  good or very good  don't know/recall 
PSC customers  Non-PSC customers 
Slightly more than one-third of the  Chart 7 
Administrative officers 
administrative officers who are PSC 
who are PSC customers: 
customers were more satisfied with 
1999 satisfaction compared to 1995 
personnel services since the inception of 
PSC in 1995.  Almost half of them were 
46% 
less satisfied.  More than two-thirds of 
the PSC customers were in their current 
36% 
positions prior to 1995 and the creation 
of PSC.  Those who were less satisfied 
with personnel also ranked 
14% 
communication between the PSC and 
their employing agency lower than non-
PSC customers. 
less satisfied  about the same  more satisfied 
PSC  Personnel Customer Service Evaluation  )))))))))))  OEI-09-98-00140 
12  Processing delays accounted for the most customer 
dissatisfaction 
Almost one-half of the employees who reported problems with transactions attributed their 
problems to processing delays.  In total, 4 percent of the general employee population perceived a 
transaction problem attributed to a delay in processing.  There was no statistically significant 
difference in the frequency of perceived delays between PSC customers and non-PSC customers. 
New employees reported delays and problems with their first pay and earnings-
and-leave statements 
Approximately 17 percent of all new employees reported delays in receiving their first paycheck. 
While only 11 percent of the new employees who are non-PSC customers reported pay delays, 21 
percent of new employees who are PSC customers reported a delay.  We could confirm less than 
half of the delays reported by PSC customers.  More than half of the reports either were not 
supported by existing paperwork or the files were not complete enough to confirm or refute the 
perceived error.  Of those reports that we confirmed, delays were attributed to:  late entry of data 
to the payroll system, mid-pay period hires resulting in forms being submitted after deadlines, late 
or incorrect direct deposit forms, and problems related to temporary appointments to the Office of 
Emergency Services. 
While most new employees received their first paycheck on time, many, especially new employees 
who had transferred from other Federal agencies, reported other delays.  For example, employees 
who transferred from other Federal agencies often reported that their leave and Thrift Savings 
balances remained inaccurate for weeks and sometimes months following their appointment.  The 
PSC and other HHS personnel offices rely on the losing Federal agency to submit data to them 
in order to calculate and transfer accurate leave and Thrift Savings account balances.  Based on 
our review of selected files, the PSC made reasonable attempts to acquire the data from other 
Federal agencies.  The other agencies were slow in responding, sometimes taking up to 6 months. 
Almost four times as many new employees who are PSC customers reported health benefit 
problems than non-PSC customers.  Most of the problems were late confirmations from various 
health insurance providers.  While health benefit deductions from payroll were timely, employees 
reported that insurance providers had not received notification of their enrollment and therefore 
could not provide benefits. 
Corrections of payroll inaccuracies were especially slow 
The PSC took longer to process personnel and payroll corrections than non-PSC agencies,

according to administrative officers.  While a significant proportion of both types of administrative

officers reported that it can take more than a month to correct payroll inaccuracies,

fewer PSC customers reported that it takes only one or two pay periods to perform corrections.

PSC  Personnel Customer Service Evaluation  )))))))))))  OEI-09-98-00140 
13  See chart 8 for details.  The 23 percent of non-PSC administrative officers who responded 
other most often said that payroll corrections performed by PSC, not their personnel unit, took 
longer. 
Chart 8 
All administrative officers: 
Corrections prccessing time 
54% 
44% 
38% 
23% 
18% 
10%  8%  6% 
within one or two pay  more than a month  other  don't know/recall 
periods 
PSC customers  Non-PSC customers 
The employees who are PSC customers were more often dissatisfied because of delays in 
correcting payroll inaccuracies.  Almost twice the proportion of PSC customers responded that 
their correction was not timely than did non-PSC customers.  While the corrections performed for 
PSC customers were rarely performed in a timely fashion, they were all eventually performed. 
Twelve percent of the employees who are non-PSC customers and who had experienced a 
Chart 9 
All HHS Employees:  Was the correction performed in a timely fashion? 
82% 
45%  43%
18%  12% 
No  Yes  Problem has not been 
corrected 
PSC customers  Non-PSC customers 
problem reported that corrections were yet to take place.  See chart 9 for details. 
PSC  Personnel Customer Service Evaluation  )))))))))))  OEI-09-98-00140 
14  To improve customer satisfaction  PSC revised its personnel 
,
staffing and organization 
While administrative officers were less satisfied with personnel services since the creation  of 
PSC, several mentioned that the service has improved in recent months.  The accessibility of the 
help desk for payroll-related problems and the relocation of some personnel staff to downtown 
Washington, D.C. have contributed to improved customer service and staff accessibility. 
New employee satisfaction with personnel 
services has improved.  For example, all of the 
Chart 10

new OIG employees who entered on duty 
New OIG employees: 

between March and May 1999 reported that 
Satisfaction with EOD process?

they were satisfied with the EOD process. 
100% 
This  compares to 81 percent of the OIG new  81% 
employees who entered on duty in the fourth 
quarter of 1998.  The newest OIG employees 
were also experiencing fewer delays in pay. 
Twenty percent of OIG employees from the  19% 
fourth quarter of 1998 reported a delay in 
their first pay, compared to 8 percent of the 
OIG employees who entered on duty from  somewhat or not at all  very satisfied or 
March to May 1999.  satisfied  satisfied 
EOD October - December 1998 
EOD March - May 1999 
Vulnerabilities persist in some key processes 
Despite improved customer satisfaction, personnel and payroll inaccuracies appear to have 
increased for the newest employees.  The new OIG employees are still experiencing problems 
getting timely confirmation of health benefits from providers.  Some new OIG employees received 
inaccurate salary amounts or inaccurate grade and step specifications on their first earnings-and-
leave statements. 
We identified several deficiencies in the PSCs internal tracking and accounting process.  The PSC 
staff rarely date stamp the forms they receive from customers, and the systems in place to ensure 
accurate and timely computer input of customer requests are tenuous at best.  For example, we 
observed new employee entry-on-duty packages being received in PSCs personnel office without 
being logged in or date stamped.  Instead, the packages were immediately placed among stacks of 
other customer requests, with no apparent system to assess priorities and/or to assure timely 
processing.  In addition, original forms retained by the PSC in OPFs often lack transaction dates 
of entry and signatures or initials of the PSC staff who processed them, making evaluation of 
processing times and staff accuracy more difficult if not impossible. 
PSC  Personnel Customer Service Evaluation  )))))))))))  OEI-09-98-00140 
15  During our review of OPFs for 40 new employees, we frequently found that important forms and 
other information were missing from the files or, conversely, we often found information that 
should not be contained in the OPF.  One quarter of the files were missing important forms and 
information.  For example, 18 percent of the files were missing position descriptions, and 
15 percent were missing the accession paperwork for the employees current position.  On the 
other hand, 23 percent of the files contained information that did not belong in the file.  Examples 
of the latter include employee evaluations from previous jobs, photocopies of an employees 
drivers license and marriage certificate, and the list of the other best qualified candidates from 
which the employee was selected for the position. 
The PSCs IMPACT automated personnel and payroll system lacks internal controls for the 
mis-allocation of bond allotments.  IMPACT does not retain data on the identity of system 
operators who change social security numbers and addresses on savings bonds issued from 
employee salary allotments.  Therefore, bond allotments can be changed and issued to addresses 
and social security numbers other than those indicated by the employee without record of who 
made the change. 
PSC  Personnel Customer Service Evaluation  )))))))))))  OEI-09-98-00140 
16  R E C O M M E N D A T I O N S  
While PSCs personnel service customer satisfaction lagged behind that of other HHS personnel 
units, we believe PSC has taken some steps to improve its service.  We recommend that PSC 
continue to improve the customer-service focus of its personnel service.  In addition, we 
recommend that PSC take the following specific actions: 
1.  establish timeliness standards for processing payroll-related personnel actions, 
2.  expand its help desk model of customer assistance, 
3.  begin to date stamp and log employee requests, 
4.  maintain more complete and accurate OPFs, 
5.  continue plans to replace the outdated IMPACT system, and 
6. 	 assure that the software that replaces IMPACT identifies staff who make changes to the 
systems data. 
PSC  Personnel Customer Service Evaluation  )))))))))))  OEI-09-98-00140 
17  A G E N C Y  R E S P O N S E  
The PSC offered the following comments in response to the recommendations in our draft report: 
Since February 14, 1999, PSC has put systems in place to ensure quality personnel service. They have 
monthly and/or quarterly meetings to address concerns relative to customer satisfaction, delivery of services 
and quality of products. After customer meetings, team meetings are held to discuss issues raised by the 
customer, identify corrective steps and develop preventive/improvement procedures. Additionally, they have 
designed a check list and quality review mechanisms for all incoming personnel requests. . . . 
PSC has implemented service standards and deliverables that define service expectations. More specifically, 
Operations Managers established timeliness standards for receiving personnel actions by Wednesday of the 
second week of each pay period to be effective the next pay period. The standard for the receipt of payroll 
documents is that those received by the end of the first week of the pay period will be processed by the end of 
that pay period. 
Dedicated staff is responsible for resolving personnel, payroll and automated systems inquiries and issues. 
PSC has developed a report monitoring system. The report is generated by the Help Desk employee and 
submitted to PSC management and to customers. The report provides updates and status to customers and 
provides PSC management with activity, timeliness and trend assessments. This information is used to better 
serve customers. Also, they have identified in appropriate correspondences, including the telephone directory, 
the name and number of the help desk contact for specified servicing agencies. 
PSC has been dating and logging incoming correspondence which has been generated by its customers 
administrative officers and now has started to log in and date stamp all employee requests as well. In most 
cases, employee requests are put into the system as soon as they are received.  Note: There probably were 
delays associated with employee requests when the servicing personnel office was located in Silver Spring and 
physically away from its customers. 
Samples of OPFs are audited quarterly in order to insure that OPFs remain accurate and complete. A 
standardized check list is used in auditing and a control log is maintained on OPFs audited.  In addition, 
OPFs are routinely reviewed when actions are taken.  Deficiencies, when found, are immediately addressed 
and the OPFs are corrected. PSC plans to accomplish, within the next calender year 2000, a review of OPFs 
for OS/AoA/OIG customers. 
For the past year, a Department-level Steering Committee for the EHRP (Enterprise Human Resources Payroll 
System) has examined options for a replacement solution of the current payroll system. This also includes the 
replacement of the IMPACT system. In August 1999, the Steering Committee selected a solution and 
implementation of this system will begin in FY 2000. 
PSC  Personnel Customer Service Evaluation  )))))))))))  OEI-09-98-00140 
18  APPENDIX A 
Sample Sizes and Response Rates 
Response 
Respondent Group  Survey number  Sampling  Sample  Number of  rate 
(see methodology)  method  size  responses 
HHS employees, serviced  1  stratified  125  103  82.4% 
by PSC personnel, who  random 
submitted a personnel  sample 
action that affected 
payroll from October 1 to 
December 31, 1998 
HHS employees, serviced  1  stratified  125  105  84% 
by other HHS personnel  random 
units, who submitted a  sample 
personnel action that 
affected payroll from 
October 1 to December 
31, 1998 
HHS employees, serviced  2  total  102  88  86.2% 
by PSC personnel, who  universe 
entered on duty from  selected 
October 1 to December 
31, 1998 
HHS employees, serviced  2  random  85  66  77.6% 
by other HHS personnel  sample 
units, who entered on 
duty from October 1 to 
December 31, 1998 
HHS administrative  4  purposeful  42  39  92.8% 
officers serviced by PSC 
personnel 
HHS administrative  4  purposeful  90  74  82.2% 
officers serviced by other 
HHS personnel units 
HHS OIG employees who  3  total  14  13  92.9% 
entered on duty from  universe 
March 1 to May 9, 1999  selected 
Total  583  488  83.7% 
PSC  Personnel Customer Service Evaluation  )))))))))))  OEI-09-98-00140 
19
 APPENDIX B 
Confidence Intervals for Selected Statistics 
Chart  Statistic  Point  95 Percent 
estimate  Confidence Interval 
PSC-processed employees who reported transaction errors  13.2%  7.2% - 19.2% 
HHS agency-processed employees who reported transaction errors  8.9%  3.8% - 13.9% 
1  PSC-processed new employees who reported inaccurate earnings and  41.4%  exact9 
leave statements 
1  HHS agency-processed new employees who reported inaccurate  23.1%  13.1% - 33.1% 
earnings and leave statements 
2  PSC-processed employees who are somewhat or not at all satisfied  46.4%  36.7% - 56.2% 
with their personnel services 
2  HHS agency-processed employees who are somewhat or not at all  17.2%  9.0% - 24.5% 
satisfied with their personnel services 
3  PSC-processed new employees who are satisfied or very satisfied with  72.4%  exact 
the EOD process 
3  HHS agency-processed new employees who are satisfied or very  80.3%  72.75% - 87.9% 
satisfied with the EOD process 
4  PSC-processed new employees who reported their personnel service is  69.0%  exact 
good or very good 
4  HHS agency-processed employees who reported their personnel  78.5%  68.7% - 88.2% 
service is good or very good 
5  since the administrative officers group was a purposive sample, confidence  exact 
intervals do not apply 
6  since the administrative officers group was a purposive sample, confidence  exact 
intervals do not apply 
7  since the administrative officers group was a purposive sample, confidence  exact 
intervals do not apply 
8  since the administrative officers group was a purposive sample, confidence  exact 
intervals do not apply 
9  PSC-processed employees who reported their correction was not  81.5%  58.7% -100.0% 
timely 
9  HHS agency-processed employees who reported their correction was  45.0%  12.2% - 77.8% 
not timely 
10  OIG new employees who reported they are satisfied or very satisfied  100.0%  exact 
with the EOD process 
9 Since the entire population was sampled, a t-test is not necessary. 
PSC  Personnel Customer Service Evaluation  )))))))))))  OEI-09-98-00140

20