type: other

text: b"D\n\n\n\n\nU.S. Department of Labor\nR\nA Wage and Hour Division\n\nF\nT\n\n\n\n\n Office of Inspector General\xe2\x80\x94Office of Audit\n\n\n\n\n WHD LACKED EFFECTIVE FINANCIAL\n MANAGEMENT OF BACK WAGE AND CIVIL\n MONETARY PENALTY RECEIVABLES\n\n\n\n\n Date Issued: September 28, 2012\n Report Number: 22-12-013-04-420\n\x0cU.S. Department of Labor September 2012\nOffice of Inspector General\nOffice of Audit\n\nBRIEFLY\xe2\x80\xa6\n WHD LACKED EFFECTIVE FINANCIAL\n MANAGEMENT OF BACK WAGE AND CIVIL\nHighlights of Report Number 22-12-013-04-420, issued MONETARY PENALTY RECEIVABLES\nto the Deputy Administrator for Wage and Hour.\n WHAT OIG FOUND\nWHY READ THE REPORT\n WHD did not accurately account for and report back\nThe Wage and Hour Division (WHD) enforces several wage and CMP receivables due from employers.\nlabor laws, including the Fair Labor Standards Act of Furthermore, WHD staff may have erroneously written\n1938 (FLSA). The FLSA is designed to ensure that off collectible receivables. Additionally, we found that\nmillions of workers are paid the federal minimum wage amounts had been written off in excess of the\nand overtime. WHD investigates allegations of wage receivable amounts due; a lack of segregation of duties\nviolations and assesses civil monetary penalties (CMP) allowed staff the ability to initiate, review, and approve\nwhen it proves an employer is a repeat and/or willful debt write offs; and debts had been written off by users\nviolator of labor laws. WHD may also require that with generic account names.\nemployers pay back wages to employees if employers\nare found in violation. In such cases, WHD is WHAT OIG RECOMMENDED\nresponsible for supervising the payment of back wages\ndue to each employee. We recommended the Deputy Administrator for Wage\n and Hour:\nWHD is required to report to the U.S. Department of\nTreasury\xe2\x80\x99s (Treasury) Financial Management Service \xef\x82\xb7\t\t Develop and implement policies and\n(FMS) quarterly on the status of back wage and CMP procedures to account and report on the status\nreceivables. In fiscal years 2011 and 2010, WHD of back wage and CMP receivables.\nreported in the DOL financial report approximately\n$12 million and $8 million in CMP revenues, and \xef\x82\xb7\t\t Improve monitoring of the work performed by\n$99,000 and $21 million in disbursements of fiduciary contractors to ensure accuracy and\nassets to beneficiaries for back wage, respectively. completeness.\n\nThe Financial Management Branch, a component of the \xef\x82\xb7\t\t Update the agency\xe2\x80\x99s policies regarding\nDivision of Administrative Operations within WHD, is segregation of duties over the initiation, review,\nresponsible for the accounting and reporting on back and approval of write-off transactions.\nwage and CMP accounts receivables, collections, and\nwrite-offs to Treasury\xe2\x80\x99s FMS on the Treasury Report on \xef\x82\xb7\t\t Modify the user guides for the back wage and\nReceivables and Debt Collection Activities (TROR). CMP systems to include the reports used in the\n TROR preparation process and their purpose.\nWHY OIG CONDUCTED THE AUDIT\nWe conducted this audit to determine whether WHD WHD agreed with our recommendations and\nhad sufficient internal controls to ensure the acknowledged errors in its preparation of the TROR for\ncompleteness and accuracy of the receivable data back wages and CMPs. WHD agreed the review\nreported to Treasury\xe2\x80\x99s FMS. process was not properly followed and stated it took\n steps to bolster the implementation of its existing\nWe examined WHD\xe2\x80\x99s reporting for the quarters ending internal control process. However, WHD disagreed with\nJune 30, 2010, and March 31, 2011. certain errors we noted in its accounting over back\n wages and CMPs. We continue to believe that WHD\xe2\x80\x99s\nREAD THE FULL REPORT lack of effective financial management of back wages\nTo view the report, including the scope, methodology, and CMPs created a risk that staff could erroneously\nand full agency response, go to: write off collectible receivables.\nhttp://www.oig.dol.gov/public/reports/oa/2012/22-12-\n013-04-420.pdf\n\x0c U.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\n\nPAGE INTENTIONALLY LEFT BLANK\n\n\n\n\n\n Management of Back Wage and CMP Receivables\n Report No. 22-12-013-04-420\n\x0c U.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\n\nTable of Contents\n\n\nAssistant Inspector General\xe2\x80\x99s Report ......................................................................... 1\n\n\nResults in Brief .............................................................................................................. 2\n\n\nObjective \xe2\x80\x94 Did WHD have sufficient internal controls to ensure the \n\n completeness and accuracy of the receivable data reported to \n\n Treasury for back wage and civil monetary penalties?........................ 4\n\n WHD did not accurately report the amount of back wage and CMP \n\n receivables in its quarterly reports to Treasury. .................................................... 4\n\n\nRecommendations ........................................................................................................ 8\n\n\nExhibits\n Exhibit 1 TROR Exception Example ................................................................... 11\n\n Exhibit 2 Write-Off Report Exception Example ................................................... 13\n\n\nAppendices 15\n\n Appendix A Background ..................................................................................... 17\n\n Appendix B Objective, Scope, Methodology, and Criteria .................................. 19\n\n Appendix C Acronyms and Abbreviations .......................................................... 21\n\n Appendix D WHD's Response to Draft Report ................................................... 23\n\n Appendix E Acknowledgements ......................................................................... 35\n\n\n\n\n\n Management of Back Wage and CMP Receivables\n Report No. 22-12-013-04-420\n\x0c U.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\n\nPAGE INTENTIONALLY LEFT BLANK\n\n\n\n\n\n Management of Back Wage and CMP Receivables\n Report No. 22-12-013-04-420\n\x0c U.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\nU.S. Department of Labor Office of Inspector General\n Washington, D.C. 20210\n\n\n\n\nSeptember 28, 2012\n\n Assistant Inspector General\xe2\x80\x99s Report\n\n\nNancy J. Leppink\nDeputy Administrator\nWage and Hour Division\nU.S. Department of Labor\n200 Constitution Avenue, NW\nWashington, DC 20210\n\nThe Wage and Hour Division (WHD) enforces several labor laws, including the Fair\nLabor Standards Act of 1938 (FLSA). FLSA is designed to ensure that millions of\nworkers are paid at least the federal minimum wage and appropriate overtime. WHD\ninvestigates allegations of wage violations and assesses civil monetary penalties (CMP)\nwhen it proves an employer is a repeat and/or willful violator of labor laws. WHD may\nalso require that employers pay back wages to employees if employers are found in\nviolation. In such cases, WHD is responsible for supervising the payment of back wages\ndue to each employee.\n\nWHD is required to submit quarterly reports to the U.S. Department of Treasury\xe2\x80\x99s\n(Treasury) Financial Management Service (FMS) on the status of back wage and CMP\nreceivables. This report is called the Treasury Report on Receivables and Debt\nCollection Activities (TROR). The TROR tells stakeholders the total value of the\nreceivables owed to federal agencies and the status of the debt portfolio.\n\nOur audit objective was to determine whether WHD had sufficient internal controls to\nensure the completeness and accuracy of the receivable data reported to Treasury for\nback wage and CMP.\n\nTo accomplish our objective, we obtained an understanding of WHD\xe2\x80\x99s process for\naccounting and reporting on back wage and CMP receivables by examining WHD\xe2\x80\x99s\npolicies and procedures and interviewing contractor and WHD officials. We tested the\nreconciliation of the data reported in the TRORs to WHD\xe2\x80\x99s back wage and CMP\nsystems. We performed analytical procedures on the TRORs and tested to ensure they\nwere prepared in accordance with Treasury\xe2\x80\x99s FMS requirements. The audit examined\nWHD\xe2\x80\x99s accounting and reporting on the status of accounts receivables for back wage\nand CMP to Treasury\xe2\x80\x99s FMS for the quarters ending, June 30, 2010, and\nMarch 31, 2011.\n\nWe conducted this performance audit in accordance with generally accepted\ngovernment auditing standards. Those standards require that we plan and perform the\n\n Management of Back Wage and CMP Receivables\n 1 Report No. 22-12-013-04-420\n\x0c U.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\naudit to obtain sufficient, appropriate evidence to provide a reasonable basis for our\nfindings and conclusions based on our audit objective. We believe that the evidence\nobtained provides a reasonable basis for our findings and conclusions based on our\naudit objective.\n\nAdditional background information is detailed in Appendix A, and our objective, scope,\nmethodology, and criteria are detailed in Appendix B.\n\n\nRESULTS IN BRIEF\n\nWHD lacked an effective internal control process to account and report on the status of\nback wage and CMP receivables. Furthermore, WHD staff may have erroneously\naccounted for write-offs of back wage and CMP. Therefore, WHD was not able to\nensure the receivable data reported to Treasury were complete and accurate.\n\nThe number and amount of back wage and CMP receivables were not consistently\nreported to Treasury, did not agree with supporting documentation, or were incorrectly\nentered into Treasury\xe2\x80\x99s information system by WHD staff. For example, reported\namounts for back wage did not agree with the supporting documentation for 16 of the19\nitems we tested (84 percent). WHD reported approximately $13.3 million in net\nreceivables to Treasury; however, supporting documentation showed net receivables to\nbe $22.8 million.\n\nWe identified errors in WHD\xe2\x80\x99s accounting for receivables written off as uncollectible. For\nexample, amounts were written off in excess of the receivable amounts due from\nemployers. WHD lacked controls in its system to prevent such transactions.\nFurthermore, WHD staff had the ability to initiate, review, and approve amounts written\noff because of a lack of segregation of duties within the system. Additionally, amounts\nwritten off were initiated, reviewed, and approved by users with generic account names,\nwhich allowed WHD staff to make entries and not be identified within the system.\nBecause WHD was unable to provide us reconcilable data from the back wage and\nCMP systems, it was not possible to test the transaction detail in those systems.\nTherefore, we were unable to determine the extent to which errors occurred within those\nsystems or whether transactions related to back wage and CMP receivables were\nproper.\n\nFurthermore, WHD\xe2\x80\x99s review of the work performed by its contract accountant to prepare\nthe TRORs was inadequate. There was no evidence that WHD staff verified the\naccuracy and completeness of the data in the spreadsheets used by the contract\naccountant to prepare the TROR by comparing that data with back wage and CMP\nsystem-generated reports. Instead, WHD relied entirely on the contractor to prepare the\nTROR report on the status of back wage and CMP receivables. Thus, errors were\nallowed to be reported and go undetected by WHD staff.\n\n\n\n\n Management of Back Wage and CMP Receivables\n 2 Report No. 22-12-013-04-420\n\x0c U.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\nWe identified inconsistencies in WHD\xe2\x80\x99s quarterly reporting of back wage and CMP\nreceivables to Treasury. Back wage receivables written off increased\n388 percent in the 2nd quarter of FY 2011 from the 1st quarter of FY 2011, and WHD\nhad reported the same balances on the TRORs in the 1st and 2nd quarters of FY 2010.\n\nWHD accumulated data on the status of receivables from the back wage, CMP, and\nTreasury\xe2\x80\x99s systems; however, the system user guides did not identify what information\nshould be captured and how it should be used. Thus, data on the status of receivables\nwere used and reported without WHD management having any knowledge of how the\ndata were derived.\n\nWe made four recommendations to the Deputy Administrator for Wage and Hour to:\n(1) develop and implement policies and procedures to account and report on the status\nof back wage and CMP receivables; (2) improve monitoring of the work performed by\ncontractors to ensure accuracy and completeness; (3) update the agency\xe2\x80\x99s policies\nregarding segregation of duties, over the initiation, review, and approval of write-off\ntransactions; and (4) modify the user guides for the back wage and CMP systems to\ninclude the reports used in the TROR preparation process and their purpose.\n\nIn response to the draft report, the Deputy Administrator for WHD agreed with our\nrecommendations and is taking corrective actions. WHD acknowledged errors in the\npreparation of the TROR, agreed that the review process was not properly followed, and\nstated it took steps to bolster the implementation of its existing internal control process.\nFurthermore, WHD stated it was focused on correcting these errors to ensure that\nTROR submissions are complete, accurate, and contain all supporting documentation.\n\nWHD disagreed with certain errors we had cited regarding its accounting over back\nwages and CMPs. WHD provided information in its response to resolve some of the\ndeficiencies. However, this did not adequately address the deficiencies noted in the\nreport. The Deputy Administrator\xe2\x80\x99s response is included in its entirety as Appendix D.\n\nWe continue to believe that WHD\xe2\x80\x99s lack of effective financial management of back\nwages and CMPs creates a risk that staff could erroneously write off collectible\nreceivables.\n\n\n\n\n Management of Back Wage and CMP Receivables\n 3 Report No. 22-12-013-04-420\n\x0c U.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\nRESULTS AND FINDINGS\n\nObjective \xe2\x80\x94 Did WHD have sufficient internal controls to ensure the\n completeness and accuracy of the receivable data reported to\n Treasury for back wage and civil monetary penalties?\n\n WHD did not accurately report the amount of back wage and CMP receivables in\n its quarterly reports to Treasury.\n\nWHD lacked an effective internal control process to account and report on the status of\nback wage and CMP receivables; therefore, WHD was not able to ensure the receivable\ndata were complete and accurate. Because WHD management lacked adequate\ncontrols over back wage and CMP, WHD staff may have erroneously written off\ncollectible receivables for back wage and CMP.\n\nErrors in reporting on the status of receivables for back wage and CMP to\nTreasury\n\nThe status of the receivables due on the TROR for back wage and CMP was not\nconsistently reported, did not agree with supporting documentation, and was incorrectly\nentered into Treasury\xe2\x80\x99s FMS Debt Management Information System (DMIS). In each of\nthe basic attributes we tested, such as validating the data reported to Treasury\xe2\x80\x99s FMS\nwith supporting documentation or verifying the TROR was properly completed, we noted\nat least one error.\n\nFor example, on the TROR as of June 30, 2010, WHD did not report the correct number\nof back wage receivables in 21 of 27 (78 percent) items we tested (see Exhibit 1).\nAdditionally, WHD incorrectly entered the amount of back wage receivables in DMIS in\n6 of 44 (14 percent) tested items. The amounts of back wage receivables reported on\nthe TROR were not properly supported in 19 of 44 instances (43 percent). In 16 of those\n19 instances (84 percent), the amount did not agree with supporting documentation.\n\nFrom our testing, we noted discrepancies between the supporting documentation used\nto prepare the TROR and the beginning accounts receivable balance, as well as the\namount of new accounts receivables, accruals, and collections reported on the TROR.\nWhile we noted improvements in WHD\xe2\x80\x99s reporting as of March 31, 2011, errors\ncontinued to exist between what was reported and the supporting documentation.\nThese errors continued to exist because WHD\xe2\x80\x99s existing internal control process was\nnot sufficient to ensure the data reported on the TROR was complete and accurate.\n\nWHD reported approximately $13.3 million in net back wage receivables to Treasury.\nHowever, based upon the supporting documentation, WHD should have reported\napproximately $22.8 million, a net difference of $9.5 million. Although WHD\nmanagement stated they recognized the error in FY 2010 and attempted to address it in\nFY 2011, the error was not disclosed to us nor did WHD provide documentation to\nsupport their attempts to correct the error. In addition, we noted discrepancies in WHD\xe2\x80\x99s\n\n Management of Back Wage and CMP Receivables\n 4 Report No. 22-12-013-04-420\n\x0c U.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\nreporting of the debt categories \xe2\x80\x93 delinquent rescheduled debt, non-delinquent\nrescheduled debt, and age classifications \xe2\x80\x93 when compared to the supporting\ndocumentation.\n\nThe Treasury\xe2\x80\x99s FMS Instructional Workbook for Preparing the Treasury Report on\nReceivables and Debt Collection Activities requires that the figures provided in the\nTROR to be reconcilable with the agency\xe2\x80\x99s financial statements. Although WHD officials\nstated that a portion of the described discrepancies could be accounted for by receipts,\nWHD could not provide sufficient evidence to support this claim. Based on the errors we\nidentified, WHD management could not ensure that the TROR reports on the status of\nback wage and CMP receivables were accurate or reliable. As such, any other official\nreports using the TROR data submitted by WHD and disseminated by Treasury\xe2\x80\x99s FMS\nto Congress, Office of Management and Budget, or the public would have contained\ninaccurate information.\n\nBack wage and CMP data not reconcilable\n\nBecause of the discrepancies we identified in WHD\xe2\x80\x99s reporting on back wage and CMP\nreceivables, we requested additional data from the back wage and CMP systems to\nperform further testing of the transaction detail. However, WHD was unable to provide\nauditable data populations that were reconcilable with the data in the\nsystem-generated reports used to prepare the TRORs or the data reported in the\nTRORs. For example, WHD was unable to identify which fields in the data populations\nwere applicable to accounts receivables, including collections, write-offs, and the\naccrual of penalties, interest, and administrative costs. WHD management officials\nbelieved the data from the tables and fields corresponded to the TROR reports;\nhowever, they were unable to provide a crosswalk from data populations to the reports.\nThus, it was not possible to test the transaction detail in the back wage and CMP\nsystems.\n\nWithout auditable data, WHD could not reconcile the data from the back wage and CMP\nsystems with the data reported to Treasury\xe2\x80\x99s FMS or the system generated reports.\nSuch reconciliations would have detected errors or anomalies in WHD\xe2\x80\x99s accounting and\nreporting of back wage and CMP. Until WHD can produce reconcilable data from the\nback wage and CMP systems, errors will continue to exist and will go undetected.\n\nErrors in accounting for write-offs of back wage and CMP\n\nBecause WHD was unable to provide auditable data, we examined the reports that\nwere used to accumulate the data on the status of back wage and CMP receivables.\nWe identified numerous accounting errors. For example, we identified errors in WHD\xe2\x80\x99s\naccounting for receivables written off (see Exhibit 2). One CMP case included current\nperiod write-offs of $775,738 and prior period write-offs of $130,122, which was more\nthan the $142,078 total due. WHD management stated that although this receivable had\nbeen written off, they subsequently received payments from the debtor. According to\nWHD management, each time a payment was received, Treasury required the amount\n\n Management of Back Wage and CMP Receivables\n 5 Report No. 22-12-013-04-420\n\x0c U.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\nwritten off to be reversed in order to apply the payment. After the payment was applied,\nthe remaining amount due was written off to show the case as a zero balance.\nHowever, during our review of Treasury guidance we noted no such requirement, but\nrather found the requirement to be that an agency should establish accounting\nprocedures to account for collections on written-off debts. As a result of the accounting\nreversals WHD had made, the total amount written off related to this case and reported\nto Treasury on the TROR was overstated.\n\nWe also found that a lack of segregation of duties allowed WHD employees to both\nreview and approve amounts written off due from employers for back wage and CMP. In\neach of the five regional offices, we identified write-offs that were both reviewed and\napproved by the same employee. Although the back wage and CMP systems user\nguides required every write-off to be completed by three separate people \xe2\x80\x94 one person\neach to initiate, review, and approve \xe2\x80\x94 these internal controls were not operating\neffectively to prevent such transactions from occurring. WHD management stated that\nthere were some exceptions to the three separate individuals write-off policy, such as\nwrite-offs of amounts that were less than $20. However, these exceptions were not\ndocumented in WHD\xe2\x80\x99s policies or procedures. Regardless of such an exception, we\nidentified write-offs greater than $20 that were both reviewed and approved by the same\nemployee.\n\nWe also identified write-offs that were reviewed and approved by employees with\ngeneric user accounts, such as \xe2\x80\x9cFormer WH\xe2\x80\x9d or \xe2\x80\x9cBWFS.\xe2\x80\x9d In each of the five regional\noffices, we identified write-offs that were both reviewed and approved by generic user\naccounts. As such, users had the ability to review and approve erroneous entries and\nnot be identified within the system. WHD management stated that these generic user\naccounts represented automatic write-offs generated by the system \xe2\x80\x94 no WHD staff\nmade the write-offs. While we noted in the system user guides that once cases reached\n24-months delinquent they were automatically written off, we noted no evidence that\nthese generic user accounts were associated with such transactions. Furthermore,\nbecause WHD could not provide auditable data for testing, we were unable to determine\nwhether these accounts were 24-months delinquent.\n\nWHD\xe2\x80\x99s inadequate policy guidance for the processing of receivable write-offs hampered\nits ability to determine whether write-offs had been properly authorized and recorded.\nAs a result, WHD is at risk that accounting errors may occur and go undetected.\n\nInadequate monitoring of contractors preparing the report on the status of back\nwage and CMP receivables\n\nWHD lacked effective policies or procedures to report on the status of back wage and\nCMP receivables and relied on the knowledge of contractors to report such information\ncorrectly. The U.S. Government Accountability Office\xe2\x80\x99s \xe2\x80\x9cStandards for Internal Control in\nthe Federal Government\xe2\x80\x9d states, in part:\n\n\n\n\n Management of Back Wage and CMP Receivables\n 6 Report No. 22-12-013-04-420\n\x0c U.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\n Management is responsible for developing the detailed policies,\n procedures, and practices to fit their agency\xe2\x80\x99s operations and to ensure\n that they are built into and an integral part of operations... internal control\n and all transactions and other significant events need to be clearly\n documented, and the documentation should be readily available for\n examination. The documentation should appear in management\n directives, administrative policies, or operating manuals and may be in\n paper or electronic form. All documentation and records should be\n properly managed and maintained.\n\nWHD relied entirely on contractors to report on the status of receivables for back wage\nand CMP. The current contractor assumed this function in April 2010 from the preceding\ncontractor who departed in February 2010. The contract accountant informed us the\nTRORs were prepared by following the documentation of the preceding contractor and\nTreasury\xe2\x80\x99s \xe2\x80\x9cInstructional Workbook for Preparing the Treasury Report on Receivables\nand Debt Collection Activities.\xe2\x80\x9d WHD\xe2\x80\x99s review of the work of the contract accountant\nwas inadequate. For example, WHD did not compare the data in the spreadsheets used\nby the contractor to report on the receivables status with data from the back wage,\nCMP, and Treasury\xe2\x80\x99s FMS systems to verify the data\xe2\x80\x99s accuracy and validity. Thus,\nerrors were allowed to be reported and went undetected by WHD staff.\n\nInconsistencies in WHD\xe2\x80\x99s quarterly reporting\n\nWe identified inconsistencies in WHD\xe2\x80\x99s quarterly reporting on the status of back wage\nand CMP receivables. For example, back wages written off increased\n388 percent in the 2nd quarter of FY 2011 and 443 percent in the 3rd quarter of\nFY 2010 when compared to the previous quarter. WHD was unable to explain these\nsignificant fluctuations. Furthermore, WHD reported the same balances on the TRORs\nin the 1st and 2nd quarter of FY 2010. Upon inquiry, WHD staff stated this error\noccurred due to the transition of the TROR preparation process from the previous\ncontractor to the new contractor and a lack of internal resources.\n\nWe also found errors on the status of receivables that had not been detected through\nsupervisory review. For example, WHD reported \xe2\x80\x9cwrite-offs - currently not collectible\xe2\x80\x9d\nusing the totals from two separate reports. However, one of the reports incorporated\ndata from the other report. By adding the two reports together, WHD overstated the total\namount of \xe2\x80\x9cwrite-offs \xe2\x80\x93 currently not collectible.\xe2\x80\x9d Furthermore, neither report included the\ntotal amount of write-offs for the fiscal year-to-date, October 1, 2009, to June 30, 2010.\nInstead, the reports included data for the period January 1, 2010, to June 30, 2010.\n\nWHD accumulated the data on the status of receivables from reports generated from\nthe back wage, CMP, and Treasury\xe2\x80\x99s FMS systems; however, the system user guides\ndid not identify what information should be captured and how it should be used. Thus,\ndata on the status of receivables was used and reported without WHD management\nhaving any knowledge of how that data was derived.\n\n\n\n Management of Back Wage and CMP Receivables\n 7 Report No. 22-12-013-04-420\n\x0c U.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\nRECOMMENDATIONS\n\nWe recommend the Deputy Administrator for Wage and Hour:\n\n1.\t Develop and implement policies and procedures to account and report on the status\n of back wage and CMP receivables.\n\n2.\t Improve monitoring of the work performed by contractors to ensure accuracy and\n completeness.\n\n3.\t Update the agency\xe2\x80\x99s policies regarding segregation of duties over the initiation,\n review, and approval of write-off transactions.\n\n4.\t Modify the user guides for the back wage and CMP systems to include the reports\n used in the TROR preparation process and their purpose.\n\n\nWe appreciate the cooperation and courtesies that Wage and Hour personnel extended\nto the Office of Inspector General during this audit. OIG personnel who made major\ncontributions to this report are listed in Appendix E.\n\n\n\n\nElliot P. Lewis\nAssistant Inspector General\n for Audit\n\n\n\n\n Management of Back Wage and CMP Receivables\n 8 Report No. 22-12-013-04-420\n\x0c U.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\n\nExhibits\n\n\n\n\n\n Management of Back Wage and CMP Receivables\n 9 Report No. 22-12-013-04-420\n\x0c U.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\n\nPAGE INTENTIONALLY LEFT BLANK\n\n\n\n\n\n Management of Back Wage and CMP Receivables\n 10 Report No. 22-12-013-04-420\n\x0c U.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\n Exhibit 1\nTROR Exception Example\n\n\n\n\n Management of Back Wage and CMP Receivables\n 11 Report No. 22-12-013-04-420\n\x0cU.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\n\n Management of Back Wage and CMP Receivables\n 12 Report No. 22-12-013-04-420\n\x0c U.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\n Exhibit 2\nWrite-Off Report Exception Example\n\n\n\n\n Management of Back Wage and CMP Receivables\n 13 Report No. 22-12-013-04-420\n\x0c U.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\n\nPAGE INTENTIONALLY LEFT BLANK\n\n\n\n\n\n Management of Back Wage and CMP Receivables\n 14 Report No. 22-12-013-04-420\n\x0c U.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\n\nAppendices\n\n\n\n\n\n Management of Back Wage and CMP Receivables\n 15 Report No. 22-12-013-04-420\n\x0c U.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\n\nPAGE INTENTIONALLY LEFT BLANK\n\n\n\n\n\n Management of Back Wage and CMP Receivables\n 16 Report No. 22-12-013-04-420\n\x0c U.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\n Appendix A\nBackground\n\nThe WHD enforces several labor laws, including the FLSA. The FLSA is designed to\nensure that millions of workers are paid the federal minimum wage ($7.25 per hour) and\novertime. WHD investigates allegations of wage and overtime violations and assesses\nCMP when it can prove an employer is a repeat and/or willful violator of labor laws.\nWHD may also require employers to pay back wages to employees if employers are\nfound in violation. Back wages represent amounts an employer did not properly pay its\nemployees, which can include pay below the minimum wage or incorrect pay for\novertime hours. WHD is responsible for supervising the payment of back wages due to\neach employee. An employer must provide evidence to WHD indicating the employee\nhad received their back wages. In the event an employer does not provide evidence of\npayment or refuses to pay back wages to an employee or CMP to WHD, WHD will\nassess interest, administrative cost charges, and other fees. Should the debt become\ndelinquent more than 180 days, the debt must be referred to the Treasury for debt\ncollection action in accordance with the Debt Collection Improvement Act of 1996\n(DCIA). The collection, disbursement, and financial reporting of activity related to CMP\nand back wage are maintained in the CMP and back wage systems, respectively.\n\nThe FMS, a bureau of Treasury, has delegated authority for carrying out the Treasury\xe2\x80\x99s\ngovernment-wide debt collection responsibilities. WHD is required to report to\nTreasury\xe2\x80\x99s FMS quarterly on the status of administrative receivables, which includes\nback wage and CMP receivables, on the TROR. The TROR is the Treasury\xe2\x80\x99s only\ncomprehensive means for periodically collecting data on the status and condition of the\nFederal Government\xe2\x80\x99s non-tax debt portfolio, in accordance with the requirements of the\nDCIA. The TROR identifies the balance of receivables, accruals, collections, and\nwrite-offs at the end of the reporting period. The TROR provides stakeholders the total\nbook value of the receivables owed to federal agencies and the status of the Federal\nGovernment\xe2\x80\x99s debt portfolio. In FY 2011 and 2010, WHD reported in the DOL financial\nreport approximately $12 million and $8 million in CMP revenues, and $99,000 and\n$21 million in disbursements of fiduciary assets to beneficiaries for back wage,\nrespectively. The Financial Management Branch, a component of the Division of\nAdministrative Operations within the WHD, is responsible for accumulating, reviewing,\nand reporting on back wage and CMP accounts receivables, collections, and write-offs\nto Treasury\xe2\x80\x99s FMS on the TROR.\n\nWe initiated this audit because of concerns that WHD lacked effective financial\nmanagement over back wage collected on behalf of employees and CMP. In 2008, the\nGovernment Accountability Office also noted that WHD officials did not know whether\nback wage or CMP had been collected from employers even though this information\nwas tracked in its financial accounting system. Thus, WHD could not use this\ninformation to determine whether it was ensuring workers actually receive the back\nwages they were entitled to or that employers were being appropriately penalized for\nviolating FLSA.\n\n\n\n Management of Back Wage and CMP Receivables\n 17 Report No. 22-12-013-04-420\n\x0c U.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\n\nPAGE INTENTIONALLY LEFT BLANK\n\n\n\n\n\n Management of Back Wage and CMP Receivables\n 18 Report No. 22-12-013-04-420\n\x0c U.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\n Appendix B\nObjective, Scope, Methodology, and Criteria\n\nObjective\n\nThe OIG conducted the audit to determine whether WHD had sufficient internal controls\nto ensure the completeness and accuracy of the receivable data reported to Treasury\nfor back wage and CMP.\n\nScope\n\nThe audit examined WHD\xe2\x80\x99s accounting and reporting of accounts receivables for back\nwage and CMP to the Treasury\xe2\x80\x99s FMS. We examined WHD\xe2\x80\x99s reporting for fiscal\nyear-to-date as of the two quarters ending, June 30, 2010, and March 31, 2011. We\nconducted fieldwork at WHD headquarters in Washington, DC.\n\nWe conducted this performance audit in accordance with generally accepted\ngovernment auditing standards. Those standards require that we plan and perform the\naudit to obtain sufficient, appropriate evidence to provide a reasonable basis for our\nfindings and conclusions based on our audit objective. We believe that the evidence\nobtained provides a reasonable basis for our findings and conclusions based on our\naudit objective.\n\nMethodology\n\nA performance audit includes an understanding of internal controls considered\nsignificant to the audit objective and testing compliance with significant laws,\nregulations, and other requirements. In planning and performing our audit, we\nconsidered whether internal controls significant to the audit were properly designed and\nplaced in operation. We obtained our understanding of WHD\xe2\x80\x99s process of accounting\nand reporting on back wage and CMP receivables by examining WHD\xe2\x80\x99s policies and\nprocedures and interviewing contractor and WHD officials from the Division of\nAdministrative Operations, Financial Management Branch.\n\nTo answer our audit objective, we selected the TRORs for back wage and CMP\nsubmitted for the fiscal year-to-date as of the two quarters ending, June 30, 2010, and\nMarch 31, 2011. We selected the fiscal year-to-date TRORs for the quarters ending,\nJune 30, 2010, and March 31, 2011, as they were the most recent submissions of the\nTRORs over the course of our audit. We tested the reconciliation of the data reported in\nthe TRORs to the back wage and CMP systems. We performed analytical procedures\nover the TRORs by comparing them to prior quarterly submissions and investigating\nsignificant variances by obtaining explanations from management. We tested to ensure\nthe TRORs were prepared in accordance with Treasury\xe2\x80\x99s FMS requirements.\n\n\n\n\n Management of Back Wage and CMP Receivables\n 19 Report No. 22-12-013-04-420\n\x0c U.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\nCriteria\n\nWe used the following criteria to accomplish our audit:\n\n \xef\x82\xb7 Title 31, United States Code \xc2\xa7 3719, Reports on Debt Collection Activities\n\n \xef\x82\xb7 Treasury Financial Manual, Volume I, Part 2, Chapter 4100, Debt Management\n Reports\n\n \xef\x82\xb7 Treasury Financial Manual, Volume I, Part 2, Chapter 4100, Supplement,\n Instructional Workbook for Preparing the Treasury Report on Receivables and\n Debt Collection Activities\n\n \xef\x82\xb7 Department of Labor Manual Series \xe2\x80\x93 Financial Management, Chapter 1100,\n Debt Management\n\n\n \xef\x82\xb7 The Debt Collection Improvement Act of 1996\n\n\n \xef\x82\xb7 Wage and Hour Division Guidance\n\n\n \xef\x82\xb7 Standards for Internal Control in the Federal Government\n\n\n\n\n\n Management of Back Wage and CMP Receivables\n 20 Report No. 22-12-013-04-420\n\x0c U.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\n Appendix C\nAcronyms and Abbreviations\n\nCMP Civil Monetary Penalties\n\nDCIA Debt Collection Improvement Act of 1996\n\nDMIS Debt Management Information System\n\nFLSA Fair Labor Standards Act of 1938\n\nFMS Financial Management Service\n\nFY Fiscal Year\n\nTreasury U.S. Department of Treasury\n\nTROR Treasury Report on Receivables and Debt Collection Activities\n\nWHD Wage and Hour Division\n\n\n\n\n Management of Back Wage and CMP Receivables\n 21 Report No. 22-12-013-04-420\n\x0c U.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\n\nPAGE INTENTIONALLY LEFT BLANK\n\n\n\n\n\n Management of Back Wage and CMP Receivables\n 22 Report No. 22-12-013-04-420\n\x0c U.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\n Appendix D\nWHD's Response to Draft Report\n\n\n\n\n Management of Back Wage and CMP Receivables\n 23 Report No. 22-12-013-04-420\n\x0cU.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\n\n Management of Back Wage and CMP Receivables\n 24 Report No. 22-12-013-04-420\n\x0cU.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\n\n Management of Back Wage and CMP Receivables\n 25 Report No. 22-12-013-04-420\n\x0cU.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\n\n Management of Back Wage and CMP Receivables\n 26 Report No. 22-12-013-04-420\n\x0cU.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\n\n Management of Back Wage and CMP Receivables\n 27 Report No. 22-12-013-04-420\n\x0cU.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\n\n Management of Back Wage and CMP Receivables\n 28 Report No. 22-12-013-04-420\n\x0cU.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\n\n Management of Back Wage and CMP Receivables\n 29 Report No. 22-12-013-04-420\n\x0cU.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\n\n Management of Back Wage and CMP Receivables\n 30 Report No. 22-12-013-04-420\n\x0cU.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\n\n Management of Back Wage and CMP Receivables\n 31 Report No. 22-12-013-04-420\n\x0cU.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\n\n Management of Back Wage and CMP Receivables\n 32 Report No. 22-12-013-04-420\n\x0cU.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\n\n Management of Back Wage and CMP Receivables\n 33 Report No. 22-12-013-04-420\n\x0cU.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\n\n Management of Back Wage and CMP Receivables\n 34 Report No. 22-12-013-04-420\n\x0c U.S. Department of Labor \xe2\x80\x93 Office of Inspector General\n\n\n\n Appendix E\nAcknowledgements\n\nKey contributors to this report were Joseph L. Donovan, Jr. (Audit Director), Sean\nGilkerson, Bashar Chowdhury, and Orville Hylton.\n\n\n\n\n Management of Back Wage and CMP Receivables\n 35 Report No. 22-12-013-04-420\n\x0cTO REPORT FRAUD, WASTE OR ABUSE, PLEASE CONTACT:\n\nOnline: http://www.oig.dol.gov/hotlineform.htm\nEmail: hotline@oig.dol.gov\n\nTelephone: \t 1-800-347-3756\n 202-693-6999\n\nFax: \t 202-693-7020\n\nAddress: Office of Inspector General\n U.S. Department of Labor\n\n 200 Constitution Avenue, N.W.\n\n Room S-5506\n\n Washington, D.C. 20210\n\n\x0c"


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Afera koroška dečka: Anja Kopač Mrak poražena še v zadnji sodni bitki - Domovina
 Domov Slovenija Afera koroška dečka: Anja Kopač Mrak poražena še v zadnji sodni bitki
 7. februarja 2017 ob 18:36
 Ministrstvo za delo, družino, socialne zadeve in enake možnosti, oziroma v njegovem imenu Center za socialno delo Velenje, se kar ni moglo sprijazniti z odločitvama upravnega in vrhovnega sodišča, da je bil odvzem koroških dečkov iz vrtca 30. marca lani nezakonit in da so bile starim staršem, pri katerih sta živela do odhoda k rejnikom, kršene ustavne pravice do družinskega življenja.
 Zato so v začetku leta vložili pritožbo še na ustavno sodišče. A ta je bila danes zavržena, saj je CSD oblastni organ, zato kot tak ne more biti nosilec človekovih pravic.
 Kljub vztrajanju do konca ministrica Anja Kopač Mrak tako ni uspela izpodbiti ugotovitve sodišč, da je država s svojim posegom v družinsko življenje starih staršev kršila ustavne pravice svojih državljanov.
 Kot pišejo na MMC RTV Slovenija, so se v CSD Velenje na ustavno sodišče pritožili, saj so presodili, da so bila z odločitvijo Vrhovnega sodišča v prid starim staršem kršena načela pravne države, pravica do enakosti pred zakonom ter pravica do pravnega varstva.
 A ustavno sodišče je iz procesnih razlogov pritožbo zavrglo, saj CSD kot oblastni organ ni nosilec človekovih pravic in mu te zato ne morejo biti kršene.
 Kljub temu v CSD Velenje še vedno vztrajajo, da je bila njihova odločitev strokovno pravilna, saj po njihovih besedah strokovnjaki v vzporednih sodnih postopkih potrjujejo, da dečka v rejniški družini, kjer ostajata, “veliko bolje napredujeta,” kot bi sicer, še pišejo na MMC.
 Ministrstvo za delo, družino in socialne zadeve pa se po pisanju portala od postopka pred ustavnim sodiščem distancira, saj pravijo, da je pritožbo vložil CSD Velenje in ne oni.
 Čudi zagrizenost ministrice Socialnih demokratov v boju proti pravicam malega človeka
 Ministrica za delo, družino, socialne zadeve in enake možnosti Anja Kopač Mrak se sicer na vse pretege otepa kakršnekoli odgovornosti v zvezi z nezakonitim odvzemom Koroških dečkov starim starše. Pravno-formalno dečkov res ni odvzelo ministrstvo in se pozneje spustilo v vse te izgubljene sodne postopke, vendar je vsakomur s kančkom zdrave pameti jasno, da se tako delikatna zadeva pred vsemi sodišči, vse do ustavnega, nikoli ne bi znašla brez blagoslova z najvišje ravni.
 Pri tem čudi, kako zagrizeno in do zadnje sodne instance se socialdemokratska ekipa, ki že leta vodi družinski resor v tej državi, spravlja na malega človeka, ki bi ga, če država tega že ne počne na splošno, moralo varovati vsaj ministrstvo s “socialnim” in “družinskim” nazivom in skrbeti za njegov dobrobit.
 Če malo karikiramo, manjka samo še pritožba na ESČP, češ da sta hudobna stara starša kršila človekove pravice državnih uslužbencev, da jima po lastni presoji iz vrtca ugrabijo vnuka.
 Sledeč dikciji nekaterih komentatorjev, da je SMC s sprejemom Zakona o tujcih pokazala svoj pravi obraz, lahko rečemo, da so v primeru Koroški dečki svoj pravi obraz pokazali Socialni demokrati in njihova ministrica Anja Kopač Mrak. Pa tudi upokojenska stranka DeSUS, ki je ravnanje proti starim staršem legitimirala s podporo ministrici ob interpelaciji v državnem zboru.
 Morda gre pri vsem skupaj še za kakšen oblastniški refleks proti ljudstvu iz nekih drugih časov, a dobro je biti poučen o pravi naravi strank, ki se sicer javno sklicujejo na svoje poslanstvo v korist “malega človeka”.
 Na ESČP namerava odvetnik babice dečkov Velimir Cugmas
 Primer “koroški dečki” bo očitno vendarle prišel pred Evropsko sodišče za človekove pravice, in sicer na pobudo starih staršev, oziroma njihovega odvetnika Velimirja Cugmasa.
 Na ustavnem sodišču je namreč želel doseči, da bi sodišče “kršitev človekove pravice” odpravilo in vnuka vrnilo starim staršem.
 A ustavno sodišče tega ni sprejelo v odločanje, zato je Cugmas imel pravico pritožbo vložiti na ESČP, kar naj bi že storil.
 Najprej upravno, nato pa še vrhovno sodišče je lani odločilo:
 mirodel 8. februarja 2017 ob 9:02 At 9:02
 Tudi v tem primeru se bo na koncu pokazalo, fa je politika še vedno močnejša od sodišč, pa naj gre za najnižje ali pa celo za ustavno. Taka je pač vladavina prava po balkansko.
 Rokc 9. februarja 2017 ob 17:59 At 17:59
 Afera kaže, kako LGBTQWERTY lobiji preko neformalnih mrež želijo uničiti človeške vezi, ki jih ponazarjata družina, sorodstvo. Cilj je jasen: če to uničiš potem preko javnega izopbraževallngega aparata dobiš direkten ideološki dostop do posameznika in tako poskrbiš, da se že v malih glavicah reproducirajo “progresivne” levo-navdahnjene ideje. In to vodi v dolgoročni propad alternativnih pogledov (konservativni a tudi klasično-liberalni).
 Tako pravi teorija. Hkrati pa se v času kriz (kot je današnja) ljudje znova povežejo na tistih vezeh, ki najbolj združujejo: krvna vez, ki se kaže prek družine, sorodnikov. Takšne situacije lahko napore novodobnih gender-revolucionarjev kulturnega marksizma precej zamajejo.
 Tudi aktiven in jasen pristop delov civilne družbe, ki so pripravljeni na boj z “revolucionarji” lahko nagne bitko v drugo stran. Iz tujine poznamo gibanja “Le Manif Pour tous”, “I Sentineli”, “March for Life”, “Gruppo Lot” in sedaj tudi pri nas društva kot je Zavod Živim!, pobude kot je molitev za nerojene otroke, Stražarji itd. To kaže, da se skupaj spravlja nova sila v javnem prostoru z jasno agendo, ki do ciljev pristopa enako kot levica. Le na tak način se ideje lahko soočijo ter se bitka izbojuje. In ravno odpor manipulacijam ga. ministrice je botroval temu, da so bili napori anti-družinskih sil v Sloveniji trenutno zaustavljeni. A le začasno.