Act as a proxy manager - my secondary formula does not list HRBP direct report

We’re trying to figure out a way to give our HR Business Partners (HRBPs) access to Workforce Compensation for the communities they support.  

HRBP→ Sandra

in Sandra's direct Report → Peter

in Peter's direct Report→Ryan

So we created the below fast formulas

now the formula returns Sandra and Peter .

First Question : should the secondary formula returns also Ryan?

Second Question: the formula is compiled and linked as secondary hierarchy but still i can't see the difference in the system (how to test )

Thank you

/*=========== INPUT VALUES DEFAULTS BEGIN =====================*/

INPUTS ARE 


CMP_IV_ASSIGNMENT_ID (number),


CMP_IV_PLAN_START_DATE (date),