Appendix E

ANNUAL LEAVE RECORD - 2009

A - Annual

Note: Annual leave

S_- Sick

earned each pay

H - Holiday

period depends on

Daily Record of Leave Used During Each Pay Period
Example: If you are sick 4 hrs. enter S-4 under the appropriate day.
If you take a day of annual leave, enter A-8 for that day.

your length of service

(10 hrs. in last pay period)
15 years. 3

Annual
Leave

Sick
Leave

Carry Over

Carry Over Carry Over

Earned|Used| Balance!

Earned] Used] Balance] Eamed] Used] Balance

Pay Period

Jan 4 - Jan 17

Jan 18 - Jan 34

Feb 1 - Feb 14

SUN |MON|TUE |WED|THU |FRI_]SAT [SUN [MON|TUE [WED[THU |FRI_|SAT

Feb 15 - Feb 28

‘Mar 1 - Mar 14

Mar 15 - Mar 28

Mar 29 - Apr 14

Apr 12 - Apr 25

co Joo |i | Jon | Joo |r Jo

Apr 26 - May 9

iS

May 10 - May 23

1

May 24 - Jun 6

12

Jun 7 - Jun 20

13)

Jun 21 - Jul 4

14)

Jul 5 - Jul 18

45)

Jul 19 - Aug 4

16

Aug 2 - Aug 15

17

Aug 16 - Aug 29

18)

Aug 30 - Sep 12

19)

Sep 13 - Sep 26

20;

Sep 27 - Oct 10

21

Oct 11 - Oct 24

22)

Oct 25 - Nov 7

23)

Nov 8 - Nov 21

24)

Nov 22 - Dec 5

25)

Dec 6 - Dec 19

26

Dec 20 - Jan 2

Form FMC-183 (Front)

Last, First, MI

Leave Cat. Code

Service Comp Date



Inasmuch as OIG recommendations herein entail only minimal additional burdens, OGC

proposes simply to concur in their implementation, even though such new requirements are not

driven by any determination of fraud, waste or abuse:

Is

The OIG recommends that OGC staff make all requests for leave on OPM Form-71,
and those requests be made in advance when possible and be attached to the STAR
during certification.

We concur with the recommendation to the extent that requests for leave be
memorialized on Form 71. All staff have been reminded of the need to use Form 71.

We recommend GC inform the primary timekeeper to request OFM staff to enter
her T&A in STAR when the alternate timekeeper is not available.

We concur and will implement this recommendation on an ongoing basis.

We recommend that the Office of Administration make changes in STAR to deny
access by timekeepers to their payroll (T&A) records.

We concur to the extent that timekeepers should not have access to input or alter their
own records. Subject to the programming requirements of NFC’s STAR system, we
believe that a recommendation that timekeeper access to an employee’s own records be
limited to “read only” access will allow the timekeepers the continued ability to view
their own record while satisfying OIG’s objective to minimize a potential internal control
vulnerability. See 46 CFR 503.65.

We recommend the OGC timekeeper and alternate adhere to the T&A SOP to note
the reason an employee was not available to certify the STAR.

We concur. By memorandum dated May 11, 2009, OGC staff were reminded of the
procedures applicable to completing leave slips and as to timesheets.

We recommend the timekeepers reconcile the Annual Attendance Record to leave
slips, FMC-109 and STAR reports, to ascertain the correct leave balances for its
employees.

We concur. OGC’s timekeeper met with OIG staff on May 8, 2009 to address
reconciling employee leave balances, and will implement this recommendation on an
ongoing basis.


Timekeepers and alternates are designated by the Director of the office/bureau on
FMC-81, Designation of Authorized Representative (See Appendix D). The alternate timekeeper
is responsible for entering time and attendance information when the primary timekeeper is not
available. To help ensure that no individual enters his/her own T&A information into STAR the
alternate timekeeper also enters the primary timekeeper’s T&A bi-weekly.

In OGC, the timekeeper relies on the information provided by the employee (i.e. the
hours worked/leave used) for STAR system input. Once entered, a STAR report is printed for
each employee for that pay period. The timekeeper, employee and the supervisor all must certify
to the report’s accuracy and that leave used was in keeping with federal laws and regulations. It
is critical that the reports are accurate and supported by detailed records.

Timekeepers are also responsible for maintaining employee leave on FMC-183, Annual
Attendance Record (See Appendix E), for each pay period. This form is maintained by the OGC
timekeeper to document and verify leave balances. OFM provides the timekeeper with this form
at the beginning of the leave year. The OGC has one timekeeper and one alternate; both are
physically located within the Office.

The OGC requires staff to record its arrival and departure bi-weekly on FMC-109,
Employee Arrival and Departure Record, regardless of their work schedule. The form is
provided to the timekeeper so that hours worked and leave used can be entered into STAR. The
timekeeper also maintains a daily attendance record for each employee and a monthly electronic
calendar that is shared with the General Counsel (GC), identifying staff leave, training and other
events requiring staff to be out of the office.

Objectives, Scope and Methodology

According to the Government Accountability Office (GAO), the primary objectives of
internal control in a T&A system are to ensure that the system complies with applicable legal
requirements, supports reporting of reliable financial information, and operates effectively and
efficiently.

The objective of this review was to assess whether OGC complied with agency policies
and government regulations concerning employee time and attendance. At the time of our audit,
OGC had a staff of 10, including two timekeepers (primary and alternate). We selected four
employees from the office; the timekeeper, the alternate timekeeper and two employees selected
at random, for detailed review of their respective leave slips, STAR reports, work schedule
requests, employee maintenance data sheets and annual attendance records. The review scope
included all pay periods in calendar year 2008.

We began the review by gaining an understanding of T&A practices used in the OGC and
compared these practices with OPM and FMC timekeeping rules and regulations. For each
employee in our sample we reviewed STAR reports and reconciled leave taken with leave
request forms, and verified that each STAR report contained required certifications (timekeeper,
employee and supervisor). We reviewed employee requests for leave to determine whether leave


Appendix C

Request for Leave or Approved Absence

1. Name (Last, first, middle) 2.

3. Organization

a. Type of Leave/Absence 5. Family and Medical Leave
erred me a | date Time Total Hours| if annual leave, sick leave, or leave without
TTacered souat Ein To. From Jo. pay will be used under the Family and

rues arinons reer’ Medical Leave Act of 1993 (FMLA), please

Restored annual leave 5 provide the following information:
Advance annual leave

Oo Accrued sick leave
[Advance sick leave

J hereby invoke my entitlement
im to family and medical leave for:

[_ ]Birthiadoption/Foster care

Purpose: _| tiness/njuryincapacitaion of requesting employee ‘Serious health condition of
oO MecicalidentaVoptical examination cf / spouse, son, daughter, or parent
Care of family member, including medicalidentaloptical examination of family member, or ‘ i
oe ly ing ntaVoptical ly [[Jserious health condition of self

{Fy care of family member with a serious heath condition
Other Contact your supervisor and/or your

personnel office to obtain additional

information about your entitlements and

[1] Compensatory time off responsibilities under the FMLA. Medical
” certification of a serious health condition
O Other paid absence may be required by your agency.
(Specify in remarks)
[L. Leave without pay
6. Remarks

7. Certification: | certify that the leave/absence requested above is for the purpose(s) indicated. | understand that | must comply with my
employing agency's procedures for requesting leave/approved absence (and provide additional documentation, including medical
certification, if required) and that falsification of information on this form may be grounds for disciplinary action, including removal.

7a. Employee signature 7b. Date signed
8a. Official action on request (if disay wei
approved, give reason. If annual leave,
1 Approved [disapproves tite action fo reschedule.)
8b. Reason for disapproval
8c. Signature 8d. Date signed

Privacy Act Statement
Section 6311 of title 5, United States Code, authorizes collection of this information. The primary use of this information is by
management and your payroll office to approve and record your use of leave. Additional disclosures of the information may be: To the
Department of Labor when processing a claim for compensation regarding a job connected injury or illness; to a State unemployment
compensation office regarding a claim; to Federal Life Insurance or Health Benefits carriers regarding a claim; to a Federal, State, or
local law enforcement agency when your agency becomes aware of a violation or possible violation of civil or criminal law; to a Federal
agency when conducting an investigation for employment or security reasons; to the Office of Personnel Management or the General
Accounting Office when the information is required for evaluation of leave administration; or the General Services Administration in
connection with its responsibilities for records management.

Public Law 104-134 (April 26, 1996) requires that any person doing business with the Federal Government furnish a social security
number or tax identification number. This is an amendment to title 31, Section 7701. Furnishing the social security number, as well as
other data, is voluntary, but failure to do so may delay or prevent action on the application. if your agency uses the information furnished
on this form for purposes other than those indicated above, it may provide you with an additional statement reflecting those purposes.

Fc alalimaniaae Local Reproduction Authorized sll
Foredy Standard Form (SF)71


Finding 3. Adherence to Agency Policies

The Commission establishes policies and procedures for staff (employees, timekeepers
and supervisors) to follow to ensure compliance with government-wide regulations. Review of
timekeeping practices used by the employees in our sample revealed inconsistent compliance
with agency guidelines pertaining to the FMC-110 and full compliance with FMC-109.

Employee Request for Work/Telework Schedule

According to CO 92, Work Schedules, supervisors are responsible for providing each
employee with a copy of FMC-110, Employee Request for Work/Telework Schedule. This
enables supervisors to monitor employee arrival and departures. Employees are responsible for
completing FMC-110 and submitting it to the supervisor/Director (if applicable) for approval.
This form can be found on the agency’s intranet. Once the form is approved or disapproved by
the supervisor a copy is provided to the timekeeper.

We found three of the four sampled employees who worked a regular or an alternate
work schedule (AWS) provided FMC-110 to the supervisor. Only one employee (who worked a
regular schedule) did not have an FMC-110 on file. We also noted that information on two
employee work schedules was outdated, e.g., supervisor, work schedule and AWS information
was incorrect. Three of four OGC employees used the newer, required FMC-110 to document
their work schedules.

The OGC addressed the findings identified above when brought to its attention at the
conclusion of our audit. OGC management provided updated FMC-110s of the sampled
employees, reflecting the current supervisor and work schedule. We commend the OGC for
addressing this finding to comply with the agency policy.

Employee Arrival and Departure Record

CO 92 requires employees on compressed work schedules (AWS or four 10-hour days) to
submit a written record of arrival and departure times on FMC-109, Employee Arrival and
Departure Record, at the end of each pay period. The form is to be certified by the employee
before it is submitted to the timekeeper. Employees working a “regular” work schedule (eight
hours per day) are also encouraged to use the form to document hours worked and leave used.
When signed by the employee, it enhances controls over T&A abuse and facilitates T&A input
accuracy.

OGC requires all employees to maintain and submit FMC-109 bi-weekly to their
timekeeper regardless of their work schedule. We found all four sampled employees provided
the form for each pay period in CY 2008, with the minor exception of one employee who
provided the form 24 of the 26 pay periods. (This employee was on a regular work schedule.)
We commend OGC for requiring this document from all OGC employees.


timekeeper to certify to the accuracy of the information. This was not a common practice in
OGC.

The payroll files contained the required FMC-110, Employee Request for Work/Telework
Schedule to document work schedules for three of the four employees reviewed. The three
employees used the updated version of the form, which includes the telework option. However,
two of the three forms did not reflect the employees’ alternate work schedule (AWS) and current
supervisor.

These and other findings, along with recommendations to address the noted deficiencies,
are provided below.

Finding I. Leave Documentation Requirements were not Routinely Followed

Commission Order 64, Employee Absence and Leave, requires employees to request
annual and sick leave, compensatory time off, leave without pay, family and medical leave, and
other paid absences, on OPM Form 71, Request for Leave or Approved Absence. These requests
are initiated by the employee and approved (or disapproved) by the employee’s supervisor and,
except in extenuating circumstances, are to be submitted in advance of leave used. The form is
given to the timekeeper (i) to validate that leave taken in a given pay period was approved and
(ii) to identify the number of leave hours used in the pay period for entry into STAR.

GAO’s Standards for Internal Control in the Federal Government states that all
transactions and other significant events are to be clearly documented and the documentation
should be readily available for examination.

We reviewed leave request forms for the four employees in our sample for each pay
period in 2008 (26 pay periods). Specifically, we reviewed whether leave was requested in
advance using required leave request forms and reconciled to the STAR reports, and whether
leave requests unnecessarily contained personally identifiable information (PII), ¢.g., social
security numbers (SSN).

Leave Used Without Proper Documentation

We found the OGC staff did not always obtain approved leave slips for leave used, but
did note the hours that were used on FMC-109. CO 64, Employee Absence and Leave, states that
annual, sick leave and other applicable leave should be submitted to the supervisor for approval
on OPM Form 71. The OPM Form 71 is primarily used as a management tool and a vehicle for
timekeepers to record the use of leave and reconcile it with other supporting documents. Use of
the form also ensures that leave is approved in advance. The following table illustrates the
number of leave hours used during the year without a valid leave request form:


was requested and approved in advance of leave taken. We also tied leave requests back to the
STAR system to verify that leave requested matched leave recorded, and inspected each form for
Personally Identifiable Information (PII). We reviewed forms FMC-109 and FMC-110 to
determine whether they were completed accurately and, when applicable, evidenced supervisory
approval. Finally, we reviewed the FMC-183 for accuracy and reconciliation with STAR for the
last pay period in the year.

We conducted the audit in January through May 2009, in accordance with generally
accepted government auditing standards. Those standards require that we plan and perform the
audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and
conclusions based on our audit objectives. We believe that the evidence obtained provides a
reasonable basis for our findings and conclusions based on these objectives.

Audit Findings and Recommendations

While the OIG found instances of noncompliance with agency and OPM policies and
procedures, this noncompliance was not material. Controls are generally in place to guard
against errors or irregularities and staff appears to take their responsibilities seriously. We found
no instances of leave fraud or abuse of leave. We commend OGC staff for the effort it has made
in this regard. Also, in a small office where all staff work in physical proximity, irregularities or
schedule deviations would tend to be noticeable by coworkers and supervisors, which serves as a
strong deterrent to abuse.

We did observe instances of noncompliance with select leave requirements that, if left
uncorrected, could ultimately result in more serious problems. OIG findings of noncompliance
involved leave request and certification requirements and select other work schedule
documentation requirements that are easily addressed and corrected. For example, all four of the
employees that we reviewed did not always prepare the OPM Form71 (leave slip) when
requesting/accounting for leave used. In total, we identified 417 hours of leave used without a
leave slip by the four sampled employees. Instead of the leave slip, these employees accounted
for leave on their FMC-109, Employee Arrival and Departure Record. But FMC-109 is not a
good substitute for the Form 109 because it is not provided to supervisors for review/approval,
and it provides no assurances that leave taken was approved in advance.

We identified two instances where employees from offices outside OGC certified the
OGC timekeeper’s STAR report. Due to the absence of the alternate timekeeper on select days,
the primary timekeeper requested assistance from other timekeepers. In two instances, the
primary timekeeper entered her own time and leave into the payroll system before asking another

2 Because the OIG relied on timekeepers to supply much of the documentation we audited, we requested
that OGC staff certify, in writing, that the records were not modified (created, deleted or altered) from the date of
our request. Frequently management of an office (or bureau) has a role in assembling or supplying the
documentation and we routinely ask management to provide such certification too. The GC did not sign the
certification because, according to him, he did not play a role in providing the payroll records to the OIG.


Appendix D

FEDERAL MARITIME COMMISSION

DESIGNATION OF AUTHORIZED REPRESENTATIVE

INSTRUCTIONS: A new form must be completed and forwarded to the Office of
Financial Management whenever the designee or alternate changes.

NAME OF DESIGNEE (Print above, last name first | “"S!GNATURE OF DESIGNEE

NAME OF ALTERNATE (Print last name first) "= SIGNATURE OF ALTERNATE

ORGANIZATIONAL AREA OF RESPONSIBILITY

DESIGNEE (or Alternate) IS AUTHORIZED TO ADMINISTRATIVE LIMITATIONS

This cancels previously issued FMC-81
a 1. CERTIFY/APPROVE TIME AND ATTENDANCE CARDS

a 2. ACT IN THE CAPACITY OF TIME AND ATTENDANCE
CLERK.

ia) 3. REQUEST/APPROVE TRAVEL AUTHORIZATIONS,
TRAVEL VOUCHERS AND LOCAL TRAVEL
REIMBURSEMENTS.

o 4. OTHER (SPECIFY)

SIGNATURE AND TITLE OF OFFICIAL AUTHORIZED TO DESIGNATE REPRESENTATIVE DATE

Signature ——s

Title

Form FMC-81
(Rev. 11/06)


Finding 2. STAR Certification by Non-Designated Alternate Timekeepers

Bureau/Office heads submit FMC-81, Designation of Authorized Representative, to the
Office of Human Resources through the Office of Financial Management (OFM) to identify the
payroll certifier and the primary and alternate timekeepers. Timekeepers are assigned user codes
and passwords to access the system. In OGC, the primary timekeeper is responsible for entering
time and attendance information for nine staff.

According to GAO’s Standards for Internal Control in the Federal Government, key
duties and responsibilities should be divided or segregated among different people to reduce the
risk of error or fraud. Further, the agency’s T&A procedures state that alternate T&A clerks are
responsible for preparing the primary timekeeper’s time card. We verified from the FMC-81 that
OGC had assigned an alternate timekeeper to perform the primary timekeeper’s duties in her
absence and to enter the primary timekeeper’s T&A into the STAR system.

During the audit, we observed two deviations from the alternate timekeeper’s practice of
entering the primary timekeeper’s T&A information into STAR. For pay periods 10 and 13, we
noted that other individuals certified the primary timekeeper’s STAR report in place of the
alternate timekeeper, specifically Office of the Secretary and the Bureau of Trade Analysis
timekeepers. This certification indicates that these individuals entered the OGC’s timekeeper’s
T&A. However, neither have the access rights to do so. When we asked the OGC timekeeper
how individuals without access to OGC T&A records were able to make these entries, she
explained that, in these two instances, she entered her time into STAR and simply asked these
other individuals to sign the document so that it could be processed.

While we have concerns about timekeepers entering their own time into the STAR
system, these outcomes in OGC occurred because the alternate was not in the office when the
timecards were prepared. Rather than asking other timekeepers to sign off on a document that
they did not prepare, it would be best to simply ask OFM staff to make the entries in STAR for
the timekeeper in similar situations.

The larger issue here is the absence of internal control in the system that allows
timekeepers access to their own T&A information in STAR. This is a serious internal control
vulnerability because timekeepers can make adjustments to, for example, their own leave
balances with little fear of detection. To correct this deficiency the agency will need to eliminate
the timekeepers’ access to their records in STAR.

Recommendation 2.__ We recommend GC inform the primary timekeeper to request OFM staff
to enter her T&A in STAR when the alternate timekeeper is not available.

Recommendation 3. | We recommend that the Office of Administration make changes to limit
access by timekeepers to their payroll (T&A) records in STAR.


Office of Inspector General

Review of the Office of the
General Counsel
Time and Attendance Practices

\TIME
Rez

July 2009



The GAO Standards for Internal Control in the
Federal Government states that transactions
should be promptly recorded to maintain their
relevance and value to management in
controlling operations and making decisions.
According to CO 64, Employee Absence and
Leave, timekeepers will keep accurate records
and supervisors will carefully monitor the use of
advance annual leave. With incorrect leave
balances, employees may be using leave that they
are not entitled to or may base leave decisions on

inaccurate leave-balance information.

The amount of the discrepancy for the above employee is minimal. However,
maintaining accurate leave balances on FMC-183 are needed; this form is used by OFM to make
corrections to the NFC database and STAR when needed.

Recommendation 5. We recommend the timekeeper reconcile the Annual Attendance Record to
leave slips, FMC-109 and STAR reports, to ascertain the correct leave
balances for its employee by the end of FY 2009.


Finding 4. Certification of STAR

The STAR report is generated by the timekeeper after T&A information has been entered
into the STAR system. The STAR report is printed and certified for accuracy by the timekeeper,
employee and the supervisor. The T&A SOP states that when an employee is not available to
certify the STAR, a notation explaining the employee’s absence should be made.

We found the timekeeper, employee, and the supervisor did not always certify STAR
reports, although most occurrences involved staff certifying their own STAR reports. For
example, the primary timekeeper (or the alternate) did not certify the STAR in two of 26
instances, and the supervisor failed to certify the STAR on one occasion. On the other hand, for
the two staff reviewed (non-timekeepers), we identified 9 instances (of 52 pay periods) without
employee certifications.

Recommendation 4. We recommend the OGC timekeeper and alternate adhere to the T&A
SOP to note the reason an employee was not available to certify the STAR.

Finding 5. Errors found on the Annual Attendance Record

The T&A SOP states that the timekeeper shall record all leave taken during the pay
period to the employee’s FMC-183, Annual Attendance Record, which is available manually or
electronically. Each calendar year the timekeeper is provided a blank FMC-183 for this purpose.
This record is to be maintained regularly, as it is used to create and verify leave balances, and is
routinely used by OFM to make corrections to the NFC database when errors occur.

We used a modified version of this form to perform a leave audit for the four employees
in our sample using balances carried over from the last pay period in CY 2007, leave slips,
FMC-109 and hours charged on STAR, and compared it to the FMC-183 maintained by the
timekeeper. 3 The modified version had other elements relating to our testing of the records.
Three of the four employee leave balances reconciled with FMC-183, our leave audit and STAR.
However, we identified an error in the leave balance for the remaining employee. Specifically,
we found a discrepancy in the sick leave balance that carried over into CY 2009. Adjustments to
correct these leave balances must be performed by OFM staff.

Leave audit results are provided below:

3 A leave audit reconciles opening leave balances, leave earnings and usage, with closing leave balances for
a predetermined time period.


NincROmNiceems The OIG identified 56 instances, totaling 418 hours of
Occurrences Hours leave, where no approved leave slip was provided for
leave used. We relied upon the FMC-109 to reconcile
leave taken with leave entered in STAR. While we
were able to reconcile leave usage using FMC-109 and
the STAR report, we observed that over 70 percent of
the hours of leave taken without a leave slip were
associated with the primary and alternate timekeepers. This raises a concern, since the supporting
documentation is not provided to the supervisor/office head when the STAR reports are certified.
Leave used in small increments, especially early in any given pay period, could be overlooked by
final certifiers.

Recommendation 1. | The OIG recommends that OGC staff make all requests for leave on OPM
Form 71.

Use of Updated OPM Form 71

We reviewed completed leave slips (when available) to determine whether employees
used the revised OPM Form 71 and to identify PII.

The Standard Form 71 was provided to federal employees in December 1997 and again in
June 2001 (revised). The updated OPM Form 71 requires an employee, who requests sick leave,
to indicate the purpose for the leave, when applicable, which includes (i) illness / injury /
incapacitation of requesting employee and (ii) care of family member with a serious health
condition. The agency’s CO 62 requires an employee who invokes his/her right to Family and
Medical Leave to provide a medical certification. These requirements provide the employee’s
supervisor with additional information relating to the use of sick leave. FMC requires that all
leave requests be made on the revised OPM Form 71.

All four employees reviewed used the new (revised) form (when the form was used).

Social Security Numbers on Leave Slips

The SSN is a unique identifier issued to U.S. citizens, and to permanent and temporary
residents. However, with increased awareness of identity theft and the need to protect PII, the
collection of SSNs for routine uses has been significantly curtailed. PII is any information about
an individual which can potentially be used to uniquely identify, contact or locate that individual.

In September 2006, the agency issued guidance to staff regarding the use of PII. The
guidance stated, in part, that the SSN was no longer required on leave requests and other agency-
used forms. Further, the agency disabled the SSN field on the electronic leave request form.
None of the four sampled employees used their SSN on any of the leave slips that were provided.
We commend OGC staff for effectively safeguarding PII on leave request forms.


Review of the Office of the General Counsel
Time and Attendance Practices

The Office of Inspector General (OIG) completed a review of time and attendance (T&A)
practices in the Federal Maritime Commission’s (FMC) Office of the General Counsel (OGC).
This audit was part of a concerted review of T&A practices in five Commission bureaus and
offices. The audit objective was to assess whether OGC complies with agency policies and
government regulations concerning T&A reporting.

Background

The FMC has a Service Level Agreement with the U.S. Department of Agriculture,
National Finance Center (NFC), to process agency time and attendance records and to pay its
employees. The System for Time and Attendance Reporting (STAR), an NFC supported, web-
based application, is used by timekeepers to prepare and transmit attendance reports as final
steps in pay and leave administration. Employees are responsible for accurately recording their
time and attendance information and certifying the accuracy of their T&A records. Supervisors
are responsible for approving work schedules, leave requests and certifying T&A biweekly
submissions.

The FMC’s Office of Financial Management (OFM) issued Standard Operating
Procedures (SOP) for T&A in July 2007 and in April 2008. The SOPs identify procedures and
responsibilities relating to the documentation of T&A processes and transmission of T&A
records. The agency also provides guidance to its employees in Commission Order (CO) 64,
Employee Absence and Leave, (December 3, 2004), and CO 92, Work Schedules, (December 15,
2003). CO 92 requires employees to document their work schedules on FMC-110, Employee
Request for Work/Telework Schedule (See Appendix A) and the actual hours worked on FMC-
109, Employee Arrival and Departure Record.' (See Appendix B)

Employee requests for leave (sick, annual or other) are to be made to the supervisor on
Office of Personnel Management (OPM) Form 71, Request for Leave or Approved Absence (i.e.,
leave slip), in advance of the proposed leave. The supervisor can approve, disapprove or modify
the request. The employee’s signature on the leave request form is a strong control over leave
abuse, as it certifies that the /eave/absence requested is for the purpose(s) indicated... and that
falsification of information on the form may be grounds for disciplinary action, including
removal. (See Appendix C) OPM Form 71 provides employees with the option to include their
social security number (SSN) on the form when requesting leave. However, in September 2006,
the Commission notified its staff that this identifier was no longer needed to process the leave
requests.

' Employees on compressed work schedules are required to complete FMC-109, however the agency
recommends that all employees use the form to document time and attendance.


In the ongoing effort to combat the possibility of fraud and abuse, equal attention must be
taken by the Inspector General that government operations not be rendered unnecessarily
cumbersome. Discretion in fashioning findings and OIG recommendations that may have the
effect of requiring ever greater detail and documentation from component offices of the
Commission should be deemed particularly appropriate in the absence of any instance of
noncompliance found to be material, as in the present case. In such instance, it may be more
productive, both to the Commission and to our employees, to promote affirmative changes in the

regulations or Commission Orders where current office procedures have not given rise to

Vn V. a

documented abuses.

Peter J. King
General Counsel


Appendix B

FEDERAL MARITIME COMMISSION

Employee Arrival and Departure Record

Name

Pay Period Beginning Ending,

ARRIVAL DEPARTURE LEAVE (hours)
DAY TIME TIME ANNUAL SICK

MONDAY
TUESDAY
WEDNESDAY
THURSDAY
FRIDAY

MONDAY
TUESDAY
WEDNESDAY
THURSDAY
FRIDAY

I hereby certify the accurateness of this
information.

Employee Signature Date

FMC-109
(3/92)


We identified two instances where employees from offices outside OGC certified the
OGC timekeeper’s STAR report. Due to the absence of the alternate timekeeper on select days,
the primary timekeeper requested assistance from other timekeepers. On these occasions, the
primary timekeeper entered her own time and leave into the payroll system before asking another
timekeeper to certify to the accuracy of the information. This was not a common practice in
OGC, but it does point out an internal control deficiency that exists agency wide. Specifically,
timekeepers should not have access to their own T&A records in the payroll system.

Other observations and findings, and recommendations to address them, are provided in
the attached report. We thank OGC staff for its help and cooperation.

ce: Deputy Director, OA
Special Assistant, OA
Director, Office of Financial Management
Director, Office of Human Resources


FEDERAL MARITIME COMMISSION
Office of Inspector General
Washington, DC 20573-0001

July 7, 2009
Office of Inspector General
TO: Peter J. King
General Counsel A

LED “lene,
dam R. Trzéviak (1
Inspector General

FROM:

SUBJECT: Review of Office of the General Counsel’s Time and Attendance Practices

The Office of Inspector General (OIG) conducted a review of the Office of the General
Counsel’s (OGC) Time and Attendance (T&A) practices. The primary objectives of internal
control in a T&A system are to ensure that the system complies with applicable legal
requirements, supports reporting of reliable financial information, and operates effectively and
efficiently. The objective of this review was to assess whether OGC complied with agency
policies and government regulations concerning employee time and attendance.

The OIG selected T&A records for four employees to test payroll procedures and
processes used in OGC. Two of the employees selected have T&A processing responsibilities.
All records pertained to the 2008 leave year.

While the OIG found select instances of noncompliance with agency and Office of
Personnel Management (OPM) policies and procedures, this noncompliance was not material.
Controls are generally in place to guard against errors or irregularities and staff appears to take
its responsibilities seriously. We found no instances of leave fraud or abuse. We commend
OGC staff for the efforts it has made in this regard.

Findings of noncompliance involved leave request and certification requirements, and
select other work schedule documentation requirements. For example, employees did not
routinely prepare the OPM Form 71, Request for Leave or Approved Absence, when
requesting/accounting for leave used. In total, we identified 417 hours of leave used without a
leave slip by the four sampled employees. While these employees accounted for leave on
FMC-109, Employee Arrival and Departure Record, this form is not provided to supervisors for
review/approval, and it provides no assurances that leave taken was approved in advance.


UNITED STATES GOVERNMENT FEDERAL MARITIME COMMISSION

Memorandum
TO : Inspector General DATE: July 7, 2009
FROM  : General Counsel

SUBJECT: Response of OGC Management to Audit Report — Time and Attendance Practices

This memorandum constitutes management’s response to the audit report transmitted in
draft on April 27. Subsequent to that date, OIG also convened an exit conference to discuss the
report’s findings; the Inspector General was not present for that latter meeting.

OIG acknowledges that “Controls are generally in place to guard against error or
irregularities and staff appears to take their responsibilities seriously.” Audit Report, at 3.
Likewise, the OIG “found no instances of leave fraud or abuse.” Jd. Both in the Audit Report
and in the memorandum transmitting same to OGC, the Inspector General is constrained to
“commend OGC staff for the efforts it has made in this regard.” Jd. As supervisor of the
timekeepers and staff of the Office of General Counsel, I concur in OIG’s findings in this regard.
Although noted only in passing within the Audit Report, OIG also documented OGC’s
supplemental office procedures which record staff arrivals and departures on Form FMC-109
regardless of work schedule, id. at 2 and 7; creation of a monthly electronic calendar shared with
the GC as to staff leave, training and other events, id. at 2; the safeguarding of PII on leave
request forms, id. at 5; and the use of updated FMC-110 forms, id. at 7, as evidencing a staff
approach which, at all times, seeks to be fully observant of the spirit of the Commission’s time

and attendance regulations.


Appendix A

FEDERAL MARITIME COMMISSION
EMPLOYEE REQUEST FOR WORK/TELEWORK SCHEDULE

To:
oO I request a regular work schedule.
rc I request that the following flexible hours be established for
me.
Arrival time
Departure time
Eo I request that the following compressed work AND/OR telework

schedule be approved for me. Please indicate 8-hour day, day
off, or telework day, as appropriate. If requesting episodic
teleworking, designate work hours and check the episodic

teleworking line.

First week of pay period.

Monday a.m. to p-m.
Tuesday ‘a.m. to ns 7)
Wednesday a.m. to SS eis
Thursday a.m. to $$ pms
Friday a.m. to ST es

I~ Episodic teleworking
Second week of pay period.

Monday a.m. to p.m.
Tuesday ‘a.m. to I Ty
Wednesday a.m. to ——.n.
Thursday a.m. to aoimemmenomntes <4
Friday a.m. to es

Employee's Signature Date
SUPERVISORY RECOMMENDATION

[7 Approve

[- Approve as modified

{[" Disapprove (justification attached)

Supervisor's Signature Date
[— Approved [— Approved as modified [- Disapproved
Bureau or office director's signature Date

cc: Employee
Timekeeper

FMC-110
(Rev. 12/2001)