Customs and INS: Comparison of Officers' Pay (13-NOV-01,	 
GAO-02-21).							 
								 
The U.S. Customs Service and the Immigration and Naturalization  
Service (INS)use different provisions to calculate pay for	 
officers. Fundamental differences in how work is scheduled and	 
how hours are counted also result in pay differences. For	 
overtime, Sunday, and holiday work, Customs officers are	 
generally paid for hours worked, whereas INS officers are often  
paid on the basis of minimum periods of time worked. Night pay is
also fundamentally different. Foreign language awards and the	 
inclusion of overtime pay in calculating retirement benefits are 
other examples of pay provisions that apply to Customs officers  
but not to INS officers. Because Customs and INS schedule work	 
differently, it is difficult to compare the two systems and to	 
analyze the effects of differences on officers' pay.		 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-02-21						        
    ACCNO:   A02063						        
  TITLE:     Customs and INS: Comparison of Officers' Pay	      
     DATE:   11/13/2001 
  SUBJECT:   Holiday pay					 
	     Labor force					 
	     Overtime compensation				 
	     Comparative analysis				 
	     Customs Service Overtime and Scheduling		 
	     System						 
								 

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GAO-02-21
     
Report to the Co- Chairman, Caucus on International Narcotics Control U. S.
Senate

United States General Accounting Office

GAO

November 2001 CUSTOMS AND INS Comparison of Officers' Pay

GAO- 02- 21

Page i GAO- 02- 21 Comparison of Customs and INS Pay Letter 1

Results in Brief 2 Background 3 Scope and Methodology 4 Comparison of
Customs and INS Officers? Pay Provisions 6 Effect of Differences in Customs
and INS Pay Provisions Varied

Depending on Schedules and Shifts Worked 11 Agency Comments and Our
Evaluation 12

Appendix I San Ysidro Land Border Port Profile 14

Appendix II Additional Examples of Effects of Differences in Customs and INS
Pay Provision Comparisons 16

Appendix III GAO Contacts and Staff Acknowledgments 20 GAO Contacts 20 Staff
Acknowledgments 20

Tables

Table 1: Summary Comparison of Pay Provisions and Terms Used by Customs and
INS 7 Table 2: Comparison of Customs and INS Overtime and Premium

Pay Provisions 9 Table 3: Comparison of Overtime Hours Worked Versus Hours
Paid 9 Table 4: Comparison of Sunday Hours Worked Versus Hours Paid 10 Table
5: Comparison of Holiday Hours Worked Versus Hours Paid 10 Table 6:
Comparison of GS- 11, Step 7, INS Officer?s Earnings and

Estimated Pay Under Customs Provisions for Pay Period 2, 2001 11 Table 7:
Comparison of GS- 11, Step 7, Customs Officer?s Earnings

and Estimated Pay Under INS Pay Provisions for Pay Period 2, 2001 12 Table
8: Comparison of GS- 11, Step 7, INS Officer?s Earnings and

Estimated Pay Under Customs Provisions for Pay Period 3, 2001 16 Contents

Page ii GAO- 02- 21 Comparison of Customs and INS Pay

Table 9: Comparison of GS- 9, Step 4, INS Officer?s Earnings and Estimated
Pay Under Customs Provisions for Pay Period 2, 2001 17 Table 10: Comparison
of GS- 11, Step 7, Customs Officer?s Earnings

and Estimated Pay Under INS Pay Provisions for Pay Period 2, 2001 18 Table
11: Comparison of GS- 9, Step 4, Customs Officer?s Earnings

and Estimated Pay Under INS Pay Provisions for Pay Period 3, 2001 19

Abbreviations

COPRA Customs Officers Pay Reform Amendments COSS Customs Overtime
Scheduling System INS Immigration and Naturalization Service

Page 1 GAO- 02- 21 Comparison of Customs and INS Pay

November 13, 2001 The Honorable Charles E. Grassley Co- Chairman, Caucus on
International

Narcotics Control United States Senate

Dear Mr. Chairman: In January 2001, we reported to you about the effects of
proposed legislation on U. S. Customs Service officers? night pay, 1 the
first of the two issues that we agreed to report on in response to your
request. This report focuses on the second issue, differences in Customs and
Immigration and Naturalization Service (INS) officers? pay. 2 Our objectives
were to (1) identify the differences in Customs and INS officers? pay
provisions, focusing on overtime and premium pay 3 and (2) determine the
effects of some of the differences on officers? pay.

To address our first objective, we compared Customs and INS pay provisions
and identified differences in the provisions, with emphasis on how officers
are paid overtime and premium pay. To address our second objective, we
analyzed selected Customs and INS officers? work schedules, shifts, and pay
for two federal pay periods covering 4 weeks in January and February 2001. 4
We conducted our analysis at one port of entry 5 and selected six examples
of different work schedules to compare officers? pay. Our analysis involved
obtaining the officers? work schedules, shifts, and pay for the two federal
pay periods and comparing the amount officers were paid with the amount they
would have been paid under the other agency?s pay provisions. Our analysis
of the effects of different provisions on selected officers? pay does not
include all the differences

1 Customs Service: Effects of Proposed Legislation on Officers? Pay (GAO-
01- 304, Jan. 31, 2001). 2 Throughout this report, when we use the term
?officer? as defined under current law (19 U. S. C. 267 (e) for Customs and
8 U. S. C. 1101 (a)( 18) for INS), we are referring to both Customs and
Immigration inspectors.

3 For this report, premium pay consists of Sunday, holiday, and night
differential pay. 4 We selected these two pay periods because they allowed
us to assess overtime, Sunday, holiday, and night pay. 5 San Ysidro land
border crossing near San Diego, CA.

United States General Accounting Office Washington, DC 20548

Page 2 GAO- 02- 21 Comparison of Customs and INS Pay

between the two pay systems. For example, we did not analyze the effects of
Customs? foreign language proficiency award on officers? pay. Our
comparisons are illustrative of some differences in the two pay systems and
their effects on officers? pay, but they are not intended to provide
generalizable findings.

As an outgrowth of different governing legislation, Customs and INS have a
wide variety of pay provisions directing how pay for officers is calculated.
These include different provisions on payment for overtime, Sunday, holiday,
and night work. Fundamental differences in how work is scheduled and how
hours are counted also result in pay differences. Foreign language
proficiency awards and the inclusion of overtime pay for retirement purposes
are two other examples of pay provisions that apply to officers of one
agency and not the other.

For overtime, Sunday, and holiday work, Customs officers are generally paid
for hours actually worked, whereas INS officers are often paid based on
minimum periods of time worked. For example, for scheduled work on Sundays,
Customs officers are paid at 1.5 times their basic hourly pay rate for hours
actually worked. In contrast, INS officers receive 2- days? pay for any
increment of time- 8 or fewer hours- worked on a Sunday.

Night pay is also fundamentally different. Customs officers can receive
night pay for a wider range of hours and can earn night pay at higher rates.
Customs officers can be paid night pay for 8- hour shifts starting as early
as 12 noon and receive night differential pay while on annual, sick, or
other leave. INS officers? night pay is limited to hours worked between 6 p.
m. and 6 a. m., and they do not receive night differential pay when on
extended leave- for 8 or more hours a pay period.

Foreign language awards and the inclusion of overtime pay in calculating
retirement benefits are two additional examples of pay provisions that apply
to officers of one agency and not the other. Customs officers who use a
foreign language when performing their inspection duties are paid a
differential or ?award,? while foreign language proficiency is a condition
of employment for INS officers. Customs officers working overtime increase
their retirement annuity because overtime up to $15,000 per year is
considered part of base pay for calculating officers? retirement annuities.
INS does not include overtime in calculating retirement benefits.

Because Customs and INS also schedule work differently, it is difficult to
compare the two systems and to analyze the effects of differences in the two
systems on officers? pay. Our six comparisons of Customs and INS Results in
Brief

Page 3 GAO- 02- 21 Comparison of Customs and INS Pay

officers? work schedules and pay at the San Ysidro, CA, port of entry showed
that differences in pay varied depending on schedules and shifts worked.

For example:

 A GS- 11, 6 step 7, San Ysidro INS officer who worked a 3 p. m.- to- 12
midnight shift during a 2- week pay period earned a total of $3,023,
including $139 in night differential pay. Under Customs? pay provisions,
assuming the same work schedule, the INS officer would have earned a total
of $3,193; $170 more than the INS officer?s actual pay. The difference
resulted from Customs? higher night differential pay rates and the greater
number of night differential hours paid.

 In contrast, we found that a GS- 11, step 7, San Ysidro Customs officer
who worked an 8 a. m.- to- 4 p. m. shift, including two Sundays, would earn
more under INS pay provisions than the officer actually earned under Customs
pay provisions. The Customs officer earned a total of $3,567 for the pay
period. Under INS pay provisions, the Customs officer would have earned a
total of $4,348; an additional $781. The difference was primarily because
the officer would have been paid 32 additional hours of overtime for 16
hours of overtime worked on two Sundays under INS provisions, in addition to
pay for regularly scheduled hours.

Our comparisons demonstrate only a small fraction of the combinations of
work schedules and shifts that are, and can be, worked by Customs and INS
officers in the field. Therefore, we must caution that our comparisons may
not be representative of Customs and INS operations nationwide, but they do
illustrate differences in the two pay systems. Moreover, they demonstrate
that straightforward and generalizable comparisons in relation to these pay
provisions are infeasible.

We provided the Customs Service and INS with a draft of this report. Their
written comments are discussed in our Agency Comments section on page 12.

The U. S. Customs Service and INS work closely together to perform their
diverse missions at the nation?s ports of entry. Customs officers?
responsibilities include (1) collecting revenue from imports, (2) inspecting

6 GS stands for the General Schedule pay plan. Background

Page 4 GAO- 02- 21 Comparison of Customs and INS Pay

all cargo entering the country, (3) enforcing Customs and other U. S. laws
and regulations, and (4) preventing the smuggling of drugs and other
contraband into the United States. INS officers? responsibilities include
(1) conducting inspections of travelers entering the United States to ensure
that all who enter have appropriate documentation, (2) denying entry to
those who are not legally admissible, and (3) enforcing all immigration laws
related to the immigration and naturalization of noncitizens. Both agencies
are cross- designated to enforce each other?s respective areas of
responsibility, and consequently, both Customs and INS officers interdict
inadmissible aliens, contraband, and drugs.

At the close of fiscal year 2000, Customs had a permanent workforce of about
20,000 employees, including about 8,000 Customs officers. These employees
carry out Customs? mission at its headquarters, 20 Customs Management
Centers, 20 Special Agent- in- Charge offices, 301 U. S. ports of entry, 5
Strategic Trade Centers, and over 25 international offices. Customs
processed over 23 million import entries, with a value of $1.17 trillion;
140 million conveyances; 7 and 489 million land, sea, and air passengers in
fiscal year 2000.

The operational and management functions of INS are administered through INS
headquarters, which oversees approximately 29,000 employees through three
Regional Offices and a headquarters- based Office of International Affairs.
These offices are responsible for directing the activities of 33 districts
and 21 Border Patrol sectors throughout the United States and three district
offices and 39 area offices outside U. S. territory. In March 2000, INS had
over 5, 000 officers staffing the country?s ports of entry. In fiscal year
2000, INS carried out immigration inspections for nearly 438 million
travelers at the land borders and nearly 92 million travelers at airports
and seaports.

To identify the differences between the Customs and INS systems for paying
overtime and premium pay to their officers, we researched the current laws
and regulations pertaining to both agencies? overtime and premium pay. We
interviewed key officials from several Customs and INS organizations,
including Customs? Offices of Finance, Field Operations, and Human Resource
Management and INS? Offices of Human Resources and Development, Inspections,
and Budget Systems and Reports Branch. We also reviewed other documents,
such as a 1998 Congressional

7 Conveyances include aircraft, trucks, trains, passenger vehicles, and
ocean vessels. Scope and

Methodology

Page 5 GAO- 02- 21 Comparison of Customs and INS Pay

Research Service report comparing Customs and INS overtime and premium pay.
8

We also visited the South Pacific Customs Management Center and the INS
District Office, both in San Diego, CA, and the San Ysidro port of entry,
which is the largest and busiest land border port in the world. (See app. I
for a profile describing the workload and workforce at the San Ysidro port
of entry.)

To determine the effect of differences in the two systems on officers? pay,
we analyzed some Customs and INS officers? work schedule and pay data at the
San Ysidro port of entry. We compared work schedules, shifts, and pay for
federal pay periods 2 and 3, covering 4 weeks in January and February 2001.

We selected these two pay periods because they allowed us to assess the
effects of the differences in overtime, Sunday, holiday, and night pay. Our
analysis involved obtaining the officers? work schedules, shifts, and pay
for the two pay periods and comparing the amount officers were paid with the
amount they would have been paid under the other agency?s pay provisions.

We obtained work schedules, shifts, and pay data for Customs officers from
Customs? central pay database, the Customs Overtime Scheduling System
(COSS), which contains detailed information of officers? overtime and
premium pay. For INS, we obtained planned work schedules from the Finalized
Schedule Report and actual work schedules and shift data from the Time &
Attendance Worksheet and the Inspection Overtime Order Report and
Certification forms at the port. We obtained pay data for INS officers at
San Ysidro from their Budget Systems and Reports Branch at INS headquarters.

We developed three pay comparisons based on Customs officers? work
schedules, shifts, and pay and three based on INS officers? work schedules,
shifts, and pay. From each agency, we judgmentally selected two GS- 11, step
7 officers, and one GS- 9, step 4 officer. GS- 11 and GS- 9 officers were
selected because they are the predominant grade levels at the port. We
selected officers who worked on the most heavily staffed shifts at San
Ysidro, whose work schedules or shifts we believed would best illustrate

8 CRS, Overtime and Premium Pay for U. S. Customs Service Officers Compared
with Immigration and Naturalization Service Officers (June 3, 1998).

Page 6 GAO- 02- 21 Comparison of Customs and INS Pay

the differences in specific pay elements including Sunday, holiday, and
night differential pay.

Customs and INS payroll specialists with expertise in time and attendance
reporting assisted us in calculating our comparisons. The officers manually
performed calculations to determine how much overtime and premium pay the
selected officers would have been paid under their agency?s pay provisions,
assuming the same pay grades and that similar schedules were worked. The
officers documented and explained their calculations based on Customs and
INS pay provisions.

Our comparisons were complicated by difficulties in obtaining agencywide
shift and payroll data at INS and the need to manually calculate and verify
the pay estimates with the assistance of the Customs and INS payroll
specialists at San Ysidro. Moreover, the comparisons demonstrate only a
small fraction of the combinations of work schedules and shifts that are,
and can be, worked by Customs and INS officers in the field. Therefore, we
must caution that our comparisons may not be representative of Customs and
INS operations nationwide. They demonstrate, however, that straightforward
and generalizable comparisons in relation to these pay provisions are
infeasible. Tables showing the effects of the differences in pay systems for
each of our comparisons are shown on pp. 11- 12 and in appendix II.

We performed our work between February 2001 and September 2001 in accordance
with generally accepted government auditing standards.

For many years, Customs and INS officers were paid under similar systems.
Customs was governed by the Act of February 13, 1911 (36 Stat. 899, 901),
which is commonly referred to as the ?1911 Act,? and INS by the Act of March
2, 1931 (46 Stat. 1467), referred to as the ?1931 Act.? The 1931 legislation
was intended to bring overtime pay for INS officers to a level comparable to
that of Customs officers under the 1911 Act. In 1993, Congress passed
legislation providing for Customs officer pay reform; the INS officers? pay
system was not addressed in the legislation. The Omnibus Budget
Reconciliation Act of 1993 (P. L. 103- 66) changed the overtime and premium
pay system for Customs officers. The Customs Officers Pay Reform Amendments
(COPRA) provisions of P. L. 103- 66 amended the 1911 Act. Overtime and
premium pay for most other federal employees is governed by the Federal
Employees Pay Act of 1945, referred to as the

?1945 Act,? as amended. Under certain circumstances, INS officers are also
compensated for overtime under the 1945 Act. Comparison of

Customs and INS Officers? Pay Provisions

Page 7 GAO- 02- 21 Comparison of Customs and INS Pay

Table 1 shows differences between Customs and INS pay provisions and
explains some terms used when referring to certain provisions and pay
calculations.

Table 1: Summary Comparison of Pay Provisions and Terms Used by Customs and
INS Pay provision/ term Customs INS

Basic pay General Schedule pay with locality pay adjustment based on
geographic area. Same as Customs. Basic hourly rate General Schedule hourly
rate with locality pay

included. Same as Customs. Basic overtime Compensation in addition to basic
pay for work

in excess of the 40- hour regularly scheduled work week or work in excess of
8 hours in a day. Overtime pay is 2 times the basic hourly rate- a 100-
percent premium (COPRA).

Compensation in addition to basic pay for work in excess of the 40- hour
regularly scheduled workweek. Applies to inspection overtime hours worked
between 5: 00 p. m. and 8: 00 a. m., Monday- Saturday and anytime on Sunday
or a holiday. Overtime pay is 4 hours pay for each additional 2 hours or
fraction thereof (1931 Act). Other overtime Not applicable. Compensation in
addition to basic pay for (1)

overtime inspection work between 8: 00 a. m. and 5: 00 p. m. Monday-
Saturday and (2) noninspection overtime outside these hours. Overtime is
paid at 1.5 times the basic hourly rate (50- percent premium.) Maximum rate
is based on salary for GS- 10, step 1- (the 1945 Act, FEPA). Premium pay
Overall term referring to extra compensation or

?premium? paid for work performed on Sunday, holiday, or at night. (The term
does not cover overtime pay.)

In addition to Sunday, holiday, and night pay, INS includes overtime in its
definition of premium pay.

Sunday pay Premium paid in addition to basic hourly rate for Sunday work.
Sunday pay is 1.5 times the basic hourly rate (50- percent premium). Sunday
can be a regularly scheduled workday. Officers are paid for actual hours
worked.

Compensation for Sunday work. Sunday pay is 2- days? pay for 8 or fewer
hours worked. Sunday is not a regularly scheduled workday. Sunday work is
scheduled in addition to the regular workweek and is always staffed with
overtime. INS officers are paid based on minimum periods of time worked.
Holiday pay Premium paid in addition to basic hourly rate for

work on a holiday. Holiday pay is 2 times the basic hourly rate (100-
percent premium).

Premium paid in addition to basic hourly rate for work on a holiday. Two
days? pay for 8 or fewer hours worked (Mon.- Sat.) in addition to basic pay.
Night pay (night differential)

Premium paid in addition to basic hourly rate for night work. Night
differential pay rates differ based on the time or shift hours worked.
Officers paid 1. 15 or 1.2 times the basic hourly rate (15- or 20- percent
differential). ?Majority of hours? provision applies depending on actual
hours worked (see table 2).

Premium paid in addition to basic hourly rate for night work. Officers are
paid 10- percent premium or ?differential? for hours worked between 6 p. m.
and 6 a. m.

Page 8 GAO- 02- 21 Comparison of Customs and INS Pay

Pay provision/ term Customs INS

Night pay on leave Customs pays night differential to officers assigned to
night shifts when they are on annual, sick, or other leave.

INS pays limited night differential (if less than 8 hours per pay period) to
officers assigned to night shifts when they are on leave. INS does not pay
night differential to officers on vacation (extended annual leave). Commute
compensation Compensation for returning to work (commute)

to perform an overtime work assignment. Commute compensation is 3 times the
basic hourly rate.

Not authorized. Callback Additional overtime paid for reporting early or

returning to work for unscheduled inspections. Callback is 2 times the basic
hourly rate.

See rollback. Rollback See callback. Additional overtime paid for reporting
early or

returning to work for unscheduled inspections. Rollback is 2- hours?
additional pay at basic overtime rate. Foreign language proficiency award
Premium paid for proficiency and use of foreign

language while performing inspection duties. Foreign language award is
between 3 and 5 percent of basic pay.

Not authorized. Retirement annuity (overtime earnings included) Customs
includes overtime earnings in

calculating retirement pay. Currently, overtime included may not exceed $15,
000 annually.

Not authorized. Alternate work schedule Regularly scheduled work during a
pay period

based on a 9- or 10- hour workday totaling 80 hours per pay period (every 2
weeks). a

Same as Customs. b a Current policy at the Port of San Ysidro is that
officers do not work an alternate work schedule. Officers work five 8- hour
days, 40 hours per week, 80- hours per pay period. b Currently INS officers
do work an alternative work schedule at the Port of San Ysidro.

Source: GAO analysis.

Table 2 shows that Customs and INS have different provisions for overtime
and pay for Sunday, holiday, and night work. The systems are not easy to
compare because pay rates and time periods that count toward overtime and
night differential pay also differ.

Page 9 GAO- 02- 21 Comparison of Customs and INS Pay

Table 2: Comparison of Customs and INS Overtime and Premium Pay Provisions
Provision Customs INS

Basic overtime pay 2 times the hourly rate for actual hours worked. a 4
hours pay for each additional 2 hours (or fraction thereof) worked. Total
Sunday pay 1.5 times the hourly rate for actual hours worked. 2 days pay for
8 or fewer hours worked. Total holiday pay 8 hours basic pay plus 1 hour of
holiday pay for

each hour actually worked. 2- days? pay for 8 or fewer hours worked in
addition to basic pay.

Total night pay b For 3 p. m.- 12 midnight: 1.15 times the hourly rate. For
11 p. m.- 8 a. m.: 1.2 times the hourly rate. For 7: 30 p. m.- 3: 30 a. m.:
1.15 times the hourly rate between 7: 30 p. m. and 11: 30 p. m. and 1.2
times the hourly rate between 11: 30 p. m. and 3: 30 a. m.

1.10 times the hourly rate from 6 p. m.- 6 a. m. a Customs includes overtime
in calculating retirement benefits b For Customs night pay, when the
?majority of hours? fall within the hours shown above, the night
differential applies for the entire shift. As such, shifts starting as early
as noon can receive night differential pay for an entire 8- hour shift.

Source: GAO analysis of Customs and INS pay provisions.

Table 3 shows a comparison of the hours of overtime worked versus the number
of hours paid under Customs and INS pay provisions. The primary difference
between the two overtime provisions is that Customs pays double the hourly
rate for actual hours worked, while INS can pay more than double- time
depending on the number of hours worked.

Table 3: Comparison of Overtime Hours Worked Versus Hours Paid Overtime
hours worked Customs hours paid a INS hours paid

1 24 2 44 3 68 4 88 5 1012 6 1212 7 1416 8 1616 a Customs includes overtime
in calculating retirement benefits.

Source: GAO analysis of Customs and INS pay provisions.

Table 4 shows a comparison of Sunday pay under Customs and INS pay
provisions. The major difference is that Customs pays 1.5 times the hourly
rate for actual hours worked; INS provides 2- days? pay for 8 or fewer hours
worked.

Page 10 GAO- 02- 21 Comparison of Customs and INS Pay

Table 4: Comparison of Sunday Hours Worked Versus Hours Paid Hours worked
Customs hours paid INS hours paid

1 1. 516 2 3. 016 3 4. 516 4 6. 016 5 7. 516 6 9. 016 7 10.5 16 8 12.0 16

Source: GAO analysis of Customs and INS pay provisions.

Table 5 shows a comparison of holiday pay under Customs and INS pay
provisions. The primary difference again is that Customs pays 8 hours basic
pay plus one hour of holiday pay for each additional hour worked; INS
provides 2- days? pay for 8 or fewer hours worked in addition to basic pay
when the holiday falls on a workday other than Sunday.

Table 5: Comparison of Holiday Hours Worked Versus Hours Paid Hours worked
Customs hours paid INS hours paid

1 924 2 1024 3 1124 4 1224 5 1324 6 1424 7 1524 8 1624

Source: GAO analysis of Customs and INS pay provisions.

Two other differences between Customs and INS pay provisions involve extra
pay for foreign language proficiency and consideration of overtime in
calculating retirement benefits. Customs pays officers an award of between 3
and 5 percent of basic pay for using a foreign language on the job, while
foreign language proficiency is a condition of employment for INS officers.
Customs also includes overtime up to a maximum of $15,000 in calculating
retirement benefits; INS does not.

Page 11 GAO- 02- 21 Comparison of Customs and INS Pay

Our six comparisons of Customs and INS officers? overtime and premium pay
showed that the effect of differences in pay provisions varied based on
schedules and shifts worked. For example, a GS- 11, step 7, San Ysidro INS
officer who worked the 3 p. m.- to- 12 midnight shift and two Sundays during
the pay period would have earned $170 more under Customs pay provisions. The
shaded area of table 6 highlights the primary difference- Customs? higher
night differential pay rate and the greater number of hours that the officer
was eligible for night differential pay. (See app. II for additional
comparisons.)

Table 6: Comparison of GS- 11, Step 7, INS Officer?s Earnings and Estimated
Pay Under Customs Provisions for Pay Period 2, 2001

Pay provision INS Customs (est.) Difference

Basic pay $2,060 80 @ $25.75 hourly rate

$2,060 80 @$ 25. 75 hourly rate

0 Overtime (Sunday) a $824

16 x 2 x hourly rate $824

16 @ 2 x hourly rate 0

Night pay b $139 54 @ 0.10 x hourly rate

$309 80 @ 0.15 x hourly rate

+$ 170

Total pay $3,023 $3,193 +$ 170

a The INS officer?s Sunday pay was in addition to 80 hours of regularly
scheduled work in the pay period. If working under Customs pay provisions,
the officer would have been paid overtime at 2 times the hourly rate for the
same hours, rather than 1.5 times the hourly rate (hourly rate plus 50-
percent Sunday premium), because the officer worked the Sunday hours in
addition to the regularly scheduled work week. b The INS officer received a
10- percent night differential for 54 hours worked between 6 p. m. and 6 a.
m. Under Customs pay provisions, because the majority of hours worked were
between 3 p. m. and midnight, the officer would have been paid a 15- percent
night differential for the entire shift worked. The officer would have been
paid a 15- percent night differential for 80 hours.

Source: GAO analysis of Customs and INS data.

On the other hand, a GS- 11, step 7, San Ysidro Customs officer who worked
the 8 a. m.- to- 4 p. m. shift that included two Sundays during the pay
period and overtime during the week and on Sunday would have earned $781
more under INS pay provisions. INS must pay overtime on Sunday and schedules
Sunday work in addition to an 80- hour pay period. The shaded area of table
7 highlights the primary difference: INS pays overtime for the first 8 hours
worked on Sundays in addition to pay for the regularly scheduled work week.
(See app. II for additional comparisons.) Effect of Differences

in Customs and INS Pay Provisions Varied Depending on Schedules and Shifts
Worked

Page 12 GAO- 02- 21 Comparison of Customs and INS Pay

Table 7: Comparison of GS- 11, Step 7, Customs Officer?s Earnings and
Estimated Pay Under INS Pay Provisions for Pay Period 2, 2001

Pay provision Customs INS (est.) Difference

Basic pay $2,060 80 @ $25.75 hourly rate

$2,060 80 @ $25.75 hourly rate

0 Overtime (Sunday) a $670

13 @ 2 x hourly rate $1,545

16 x 2 x hourly rate 28 @ hourly rate

+$ 875 Overtime (Mon.- Sat.) b $631

12.25 @ 2 x hourly rate $743

4.25 @ 1.5 x hourly rate c 24 @ hourly rate

+112 Sunday premium pay a $206

16 @ 0.5 x hourly rate 0 -$ 206

Total pay $3,567 $4,348 +$ 781

a In addition to working two scheduled 8- hour Sundays for which the Customs
officer was paid basic pay and a 50- percent premium, the officer worked 13
hours of overtime ( 6 hours the first Sunday and 7 hours the second Sunday)
and was paid at 2 times the hourly rate. Under INS provisions, the officer
would have been paid 2- days? pay for both Sundays and 28 hours of 1931 Act
overtime for the additional 13 hours of overtime worked on the two Sundays.
b The Customs officer worked 12.25 hours of overtime Monday through Saturday
and was paid at 2

times the hourly rate. Under INS pay provisions, the officer would have been
paid 4.25 hours of 1945 Act overtime at 1.5 times the hourly rate for
inspection overtime worked between 8 a. m. and 5 p. m. and 24 hours of 1931
Act overtime for 8 hours of overtime worked between 5 p. m. and 8 a. m. c
$19.53 was the hourly rate of a GS- 10, step 1, the maximum hourly rate for
1945 Act (FEPA)

overtime in calendar year 2001. Source: GAO analysis of Customs and INS
data.

We requested comments on a draft of this report from the Commissioners of
Customs and INS. On October 19 and 22, INS provided comments from several of
its offices. Many of the comments referenced the limited scope of our
review. For example, the Assistant Commissioner, Human Resources and
Development, commented, in part, that ?It is the limited scope of this
current study, which addresses a single land border crossing, that restricts
it applicability and use in drawing broad comparisons and conclusions.? As
discussed with our requester, our objective was not to do a comprehensive
review of the two pay systems but to identify differences and show the
effect of some of the differences on Customs and INS officers? pay. We
believe that our pay comparisons sufficiently illustrate that the two pay
systems are very different and do not lend themselves to side- by- side
comparisons.

In addition, INS? Assistant Commissioner, Human Resources and Development,
commented that tables 6 and 7 in the draft report were limited in their
usefulness because of a lack of information regarding when the officers
performed the work during the workweek. We believe that the Agency Comments

and Our Evaluation

Page 13 GAO- 02- 21 Comparison of Customs and INS Pay

notes to tables 6 and 7 sufficiently explain when the officers worked both
regularly scheduled shifts and overtime.

INS? Acting Executive Associate Commissioner, Office of Programs, commented
that we should have provided a more detailed analysis of a major difference
between the two systems; overtime pay being included in the retirement
calculation for Customs officers but not for INS officers. We noted this in
two instances in the report (see pp. 2 and 10), but did not perform a
detailed analysis of the annuities because our focus was on differences in
pay for work performed at the ports of entry, not on total compensation
packages.

INS officials provided additional technical comments, which we have
incorporated where appropriate.

On October 25, Customs provided comments on the draft report. The Director,
Office of Planning, said that most of Customs? concerns had been addressed
through discussions with the audit team. The Director provided other
technical comments, which we have included where appropriate.

As agreed with your office, unless you publicly announce its contents
earlier, we plan no additional distribution of this report until 30 days
from its issue date. At that time, we will send copies of this report to the
Chairman of the Senate Caucus on International Narcotics Control; Chairman
and Ranking Minority Member of the Senate Committee on Finance; and Chairmen
and Ranking Minority Members of the House Ways and Means Committee and its
Subcommittee on Trade. We will also send copies to the Attorney General;
Secretary of the Treasury; Commissioner of Customs; Commissioner,
Immigration and Naturalization Service; and others upon request.

The key contributors to this report are acknowledged in appendix III. If you
or your staff have any questions about this report, please contact me on
(202) 512- 8777 or Darryl W. Dutton on (213) 830- 1000.

Sincerely yours, Laurie E. Ekstrand Director, Justice Issues

Appendix I: San Ysidro Land Border Port Profile

Page 14 GAO- 02- 21 Comparison of Customs and INS Pay

San Ysidro is the largest and busiest land border port in the world.
According to Customs, in fiscal year 2000, almost 40 million people passed
through the 24- hour port of entry; they arrived in vehicles (32 million),
buses (76,000), and as pedestrians (12.6 million).

Entry into the United States is granted by either Customs or INS officers,
who share primary inspection responsibilities at the port. As of May 2001,
San Ysidro had approximately 122 Customs officers 1 and approximately132 INS
officers responsible for inspecting people and vehicles entering the United
States.

Customs? work schedules were

 Two 40- hour work weeks;

 5 days a week; 8- hour workdays within a 7- day week;

 Regularly scheduled Saturdays and Sundays; and

 No alternate work schedules. Customs? most heavily staffed shifts were

 8 a. m.- 4 p. m. (36 officers),

 4 p. m.- 12 a. m. (36 officers),

 12 a. m.- 8 a. m., Monday- Friday (15 officers), and

 12 a. m.- 8 a. m., Saturday- Sunday (18 officers). INS? work schedules
were

 One 80- hour pay period;

 6- day work week, Monday- Saturday;

 Sunday not regularly scheduled (always overtime); and

 Alternate work schedules (typically eight 9- hour days and one 8- hour
day).

1 This number does not include officers assigned to Otay Mesa port- of-
entry and does not include canine enforcement officers. Appendix I: San
Ysidro Land Border Port

Profile

Appendix I: San Ysidro Land Border Port Profile

Page 15 GAO- 02- 21 Comparison of Customs and INS Pay

INS? most heavily staffed shifts were

 5 a. m.- 3 p. m. (10 officers),

 6 a. m.- 3 p. m. (34 officers),

 3 p. m.- 12 a. m. (42 officers), and

 12 a. m.- 9 a. m. (16 officers).

Appendix II: Additional Examples of Effects of Differences in Customs and
INS Pay Provision Comparisons

Page 16 GAO- 02- 21 Comparison of Customs and INS Pay

In addition to the two pay comparisons presented on pages 11 and 12, we
performed four comparisons that show differences in Customs and INS pay,
which varied depending on schedules and shifts worked. For example, a GS-
11, step 7, San Ysidro INS officer who worked the 3 p. m.- to- 12 midnight
shift, including one weekday holiday and two Sundays during the pay period,
would have earned $21 less under Customs pay provisions. The difference is
primarily because INS pays 2- days? pay plus basic pay for a holiday, and
Customs pays 1- day?s pay plus basic pay for the holiday. This difference is
partially offset, however, by Customs? paying night differential to an
officer on annual leave (vacation); INS pays limited night differential to
officers while they are on leave. The INS officer in our example was on
leave for 3 days during the pay period. In addition, Customs also pays a
higher night differential rate; 15- percent versus a 10- percent premium for
INS.

The shaded areas of table 8 highlight the primary differences; INS? higher
holiday pay, Customs? higher night differential pay, and Customs? night
differential paid to an officer on leave.

Table 8: Comparison of GS- 11, Step 7, INS Officer?s Earnings and Estimated
Pay Under Customs Provisions for Pay Period 3, 2001

Pay provision INS Customs (est.) Difference

Basic pay $2,060 80 @ $25.75 hourly rate

$2,060 80 @ $25.75 hourly rate

0 Overtime (Sunday) a $824

16 x 2 x hourly rate $824

16 @ 2 x hourly rate 0

Holiday pay b $412 16 @ hourly rate

$206 8 @ hourly rate

-$ 206 Night pay c $93

36 @ 0.10 x hourly rate $278

72 @ 0.15 x hourly rate +$ 185

Total pay $3,389 $3,368 -$ 21

a The INS officer?s Sunday pay was in addition to 80 hours of regularly
scheduled work. If working under Customs pay provisions, the officer would
have been paid overtime at 2 times the hourly rate for the same hours,
rather than 1. 5 times the hourly rate (hourly rate plus 50- percent Sunday
premium), because the officer worked the Sunday hours in addition to the
regularly scheduled work week. b The INS officer was paid 2- days? pay for a
Monday- Saturday holiday in addition to 1- day?s basic pay

(3 days? pay in total). Under Customs pay provisions, the officer would have
been paid a 1- day premium for the holiday in addition to 1 day?s basic pay
(2- days? pay in total). c The INS officer received a 10- percent night
differential for 36 hours worked between 6 p. m. and 6 a. m., but no night
differential while on 3 days? annual leave. The officer received night
differential for the holiday. Under Customs pay provisions( the majority of
hours provision), the officer would have been paid, a 15 percent night
differential for 72 hours, including night differential while on 3 days
leave. Under Customs pay provisions, the officer would not have been paid
night differential for the holiday.

Source: GAO analysis of Customs and INS data.

Appendix II: Additional Examples of Effects of Differences in Customs and
INS Pay Provision Comparisons

Appendix II: Additional Examples of Effects of Differences in Customs and
INS Pay Provision Comparisons

Page 17 GAO- 02- 21 Comparison of Customs and INS Pay

In another example, a GS- 9, step 4, San Ysidro INS officer who worked the
12 midnight- to- 9 a. m. shift, 2 Sundays, and overtime during the week
would have earned $402 more under Customs pay provisions. The difference is
primarily due to Customs paying a higher overtime rate Monday through
Saturday, Sunday commute pay, and higher night pay than INS. The shaded
areas of table 9 highlight the primary differences in pay.

Table 9: Comparison of GS- 9, Step 4, INS Officer?s Earnings and Estimated
Pay Under Customs Provisions for Pay Period 2, 2001

Provision INS Customs (est.) Difference

Basic pay $1,561 80 @ $19.51 hourly rate

$1,561 80 @ $19.51 hourly rate

0 Overtime (Sunday) a $624

16 x 2 x hourly rate $624

16 @ 2 x hourly rate 0

Overtime (Mon.- Sat.) b $468 12 @ hourly rate 8 @ 1.5 x hourly rate

$546 14 @ 2 x hourly rate

+$ 78 Commute (Sunday) c 0 $117

6 @ hourly rate +$ 117

Night pay d $105 54 @ 0.10 x hourly rate

$312 80 @ 0.20 x hourly rate

+$ 207

Total pay $2,758 $3,160 +$ 402

a The INS officer?s Sunday pay was in addition to 80 hours of regularly
scheduled work. If working under Customs pay provisions, the officer would
have been paid overtime at 2 times the hourly rate for those same hours,
rather than 1.5 times the hourly rate (hourly rate plus 50- percent Sunday
premium), because the officer worked the Sunday hours in addition to the
regularly scheduled work week. b The INS officer was paid 12 hours of 1931
Act overtime for 6 hours overtime worked between 5 p. m. and 8 a. m. The
officer also worked 8 hours of 1945 Act inspection overtime between 8 a. m.
and 5 p. m. and was paid at l. 5 times the hourly rate. Under Customs pay
provisions, the officer would have been paid for 14 hours of overtime at 2
times the hourly rate. c The INS officer was not authorized to receive
commute pay under INS pay provisions. Under

Customs pay provisions, the officer would have been paid 6 hours commute pay
for returning to work on two Sundays, at 3 times the hourly rate, to perform
overtime assignments. d The INS officer received a 10- percent night
differential for 54 hours worked between 6 p. m. and 6

a. m. Under Customs pay provisions, because the majority of hours worked
were between 11 p. m. and 8 a. m., the officer would have been paid a 20-
percent differential for 80 hours.

Source: GAO analysis of Customs and INS data.

Another example shows that a GS- 11, step 7, San Ysidro Customs officer who
worked the 4 p. m.- to- midnight shift, including 2 Sundays and overtime on
Sunday and during the week, would have received $79 more under INS pay
provisions. The difference was primarily due to the officer receiving 2-
days? pay for Sunday overtime under INS provisions; Sunday was a regularly
scheduled Customs workday, and the officer received only

Appendix II: Additional Examples of Effects of Differences in Customs and
INS Pay Provision Comparisons

Page 18 GAO- 02- 21 Comparison of Customs and INS Pay

30 minutes of overtime, or $26 extra. The shaded area of table 10 highlights
the primary difference; INS pays overtime for the first 8 hours worked on
Sundays, in addition to pay for the regularly scheduled workweek.

Table 10: Comparison of GS- 11, Step 7, Customs Officer?s Earnings and
Estimated Pay Under INS Pay Provisions for Pay Period 2, 2001

Pay provision Customs INS (est.) Difference

Basic pay $2,060 80 @ $25.75 hourly

rate $2,060

80 @ $25.75 hourly rate 0

Overtime (Sunday) a $26 0.5 @ 2 x hourly rate

$427 8 x 2 x hourly rate 0.5 @ 1.5 x hourly rate b

+$ 401 Overtime (Mon- Sat) c $258

5 @ 2 x hourly rate $147

5 @ 1.5 x hourly rate b -111

Sunday premium pay a $103 8 @ 0.5 x hourly rate

0 Does not apply

-$ 103 Night pay d $247

64 @ 0.15 x hourly rate

$139 54 @ 0.10 x hourly rate

-$ 108

Total pay $2,694 $2,773 +79

a The Customs officer worked 8.5 hours on one of the Sundays. For that
Sunday, the officer was paid basic pay and a 50- percent Sunday premium for
8 hours and 2 times the hourly rate for 30 minutes overtime. The Customs
officer was on sick leave the other Sunday and received basic pay but was
not paid Sunday premium for that day. Under INS pay provisions, the officer
would have been paid 2 days? pay for the first 8 hours worked and 30 minutes
of 1945 Act overtime at 1.5 times the hourly rate. b $19.53 is the GS- 10,
step 1, maximum hourly rate for 1945 Act (FEPA) overtime in calendar year

2001. Under INS pay provisions, an officer working in excess of 8 hours, but
less than 9 hours on a Sunday or a holiday, would have been paid 1945 Act
overtime at 1.5 times the hourly rate. The officer would also have been paid
1945 Act overtime for inspection overtime worked between 8 a. m. and 5 p.
m., Monday through Saturday. c The Customs officer was paid 5 hours of
overtime at 2 times the hourly rate. Under INS pay provisions, the officer
would have been paid for 5 hours of 1945 Act inspection overtime between 8
a. m. and 5 p. m. at 1. 5 times the hourly rate. d The Customs officer was
paid a 15- percent night differential for 64 hours because the majority of

hours worked were between 3 p. m. and 12 midnight. Under INS pay provisions,
the officer would have been paid a 10- percent night differential for 54
hours worked between 6 p. m. and 6 a. m.

Source: GAO analysis of Customs and INS data.

In our last example, a GS- 9, step 4, San Ysidro Customs officer who worked
the 2 p. m.- to- 10 p. m. shift, including one weekday holiday during the
pay period, would have earned $219 more under INS pay provisions.

Appendix II: Additional Examples of Effects of Differences in Customs and
INS Pay Provision Comparisons

Page 19 GAO- 02- 21 Comparison of Customs and INS Pay

The difference was primarily due to the officer being paid for ?rollback? 1
(? callback? under Customs provisions) and 8 additional hours of holiday pay
under INS provisions. The shaded areas of table 11 highlight the primary
differences; INS would pay rollback and twice the holiday pay of Customs?
pay.

Table 11: Comparison of GS- 9, Step 4, Customs Officer?s Earnings and
Estimated Pay Under INS Pay Provisions for Pay Period 3, 2001

Pay provision Customs INS (est.) Difference

Basic pay $1,561 80 @ $19.51 hourly rate

$1,561 80 @ $19.51 hourly rate

0 Overtime (Mon.- Sat.) a $576

14.75 @ 2 x hourly rate $624

32 @ hourly rate +48

Callback (Customs), rollback (INS) b

0 $156 8 @ hourly rate

+156 Holiday Pay c $156

8 @ hourly rate $312

16 @ hourly rate +156

Night pay d $211 72 @ 0.15 x hourly rate

$70 36 @ 0.10 x hourly rate

-141

Total pay $2,504 $2,723 +219

a The Customs officer was paid 14.75 hours of overtime at 2 times the hourly
rate. Under INS pay provisions, the officer would have been paid 32 hours of
1931 Act overtime for 14. 5 hours worked. b Under INS pay provisions, the
officer would have been paid 8 hours rollback at the hourly rate, or two

hours pay at the basic overtime rate (four hours) on two weekdays, for
working overtime that was not continuous to previously worked shifts. c The
Customs officer was paid a 1- day premium for the holiday in addition to 1-
day?s basic pay (2-

days? pay in total). Under INS pay provisions, the officer would have been
paid 2- days? pay for a Monday- Saturday holiday in addition to 1- day?s
basic pay (3 days pay in total). d The Customs officer received a 15 percent
night differential for 72 hours because the majority of hours worked were
between 3 p. m. and midnight. Under INS pay provisions, the officer would
have been paid a 10- percent night differential for 36 hours worked between
6 p. m. and 6 a. m.

Source: GAO analysis of Customs and INS data.

1 Additional pay at the basic overtime rate for reporting early or being
called back for unscheduled inspections.

Appendix III: GAO Contacts and Staff Acknowledgments

Page 20 GAO- 02- 21 Comparison of Customs and INS Pay

Laurie E. Ekstrand, (202) 512- 8777 Darryl W. Dutton, (213) 830- 1000

Kathleen Ebert, James Russell, Samuel Caldrone, David Alexander, Wendy
Ahmed, Nancy Finley, and Mike O?Donnell made key contributions to this
report. Appendix III: GAO Contacts and Staff

Acknowledgments GAO Contacts Staff Acknowledgments

(440002)

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