Summary: GAO reviewed the Defense Finance and Accounting Service's (DFAS) plans to implement a joint services software (JSS) military pay system, focusing on: (1) the Army's implementation of the JSS military pay system; (2) whether the Navy should implement a JSS pay system; and (3) major JSS pay computation, accountability, and internal control problems. GAO found that: (1) a JSS military pay system would create a uniform payroll system for all military services that provides adequate payroll accountability and control; (2) the Army's JSS payroll system design and operating problems have resulted in invalid payments, inaccurate remittance of payroll withholdings, payments to individuals not in the personnel system, and erroneous payments to the wrong appropriations; (3) the Army's JSS pay system has experienced problems because DFAS did not follow proper procedures during implementation, former payroll system deficiencies were not corrected prior to JSS implementation, individual payroll data were not verified, and accounting and budget personnel were not adequately trained; (4) JSS payroll problems were not caused by DFAS consolidation; and (5) the Navy should not implement the JSS payroll system until system design and operating deficiencies are corrected.
