[Improvement in Financial Management and Accountability in Government--A Challenge to All]

The Comptroller General commented on the recent shift of programs and operations from the Federal to the State level and the changes in the roles of State officials. He advised that, in the process of standardizing accounting principles and standards on the Federal, State, and local levels, all funds be maintained in one accounting system to: (1) help assure greater accountability over those funds, (2) facilitate financial reporting, and (3) avoid unnecessary duplication of effort. GAO also urged that States review their systems of internal control in coordination with the ongoing evaluations of Federal agencies' internal accounting and administrative systems as required by the Federal Managers' Financial Integrity Act of 1982. The Comptroller General approves of greater State involvement in Federal funds management with appropriate Federal controls and announced a draft plan to ensure that single financial audits of State and local governmental entities are conducted regularly so that compliance with laws and regulations that may have a material effect on the financial statements can be determined.