Financial Audit: Examination of GSA's Financial Statements for Fiscal Years 1987 and 1986
AFMD-89-17
Published: Nov 21, 1988. Publicly Released: Nov 21, 1988.
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Highlights
GAO presented the results of its examinations of the General Services Administration's (GSA) consolidated financial statements for the fiscal years ended September 30, 1987 and 1986, and the related consolidated statements of revenues and expenses, of changes in financial position, and of reconciliation to budget reports for the fiscal years then ended.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| General Services Administration | The Acting Administrator of General Services should direct GSA staff to establish procedures to periodically verify the accuracy of inventory records for motor vehicles by physical count and reconcile them to reflect actual quantities on hand. |
Closed – Implemented
On September 30, 1987, GSA had 5,700 vehicles at a net book value of $12.4 million that had been sold still on its books. GSA took steps to reconcile the FMS Tires Systems in fiscal year (FY) 1988. The GAO September 30, 1988, audit discussed only 288 vehicles at a net book value of $1.2 million.
|
| General Services Administration | The Acting Administrator of General Services should direct GSA staff to expedite the processing of vehicle sales information so that timely adjustments are made to inventory records to account for vehicle disposals. |
Closed – Implemented
GSA had expedited the processing of vehicle disposal information during FY 1988 so that at yearend only 288 vehicles at a net book value of $1.2 million remained on the books that required audit adjustment.
|
| General Services Administration | The Acting Administrator of General Services should direct GSA staff to thoroughly test the ACORN subsystem and make the required programming changes to ensure that the subsystem processes and produces reliable financial information. |
Closed – Implemented
In FY 1988, GSA corrected the unbilled accounts receivable and related revenue accounts by performing timely reconciliations and monitoring the ACORN subsystem. GSA is considering scrapping ACORN and replacing it with a new, more reliable system.
|
| General Services Administration | The Acting Administrator of General Services should direct GSA staff to conduct a detailed review of billing activities relating to automatic data processing contracts and task orders and make the necessary adjustments to correct unbilled accounts receivable and the related revenue accounts. |
Closed – Implemented
In FY 1988, GSA corrected the unbilled accounts receivable and related revenue accounts by performing timely reconciliations and monitoring the ACORN subsystem. GSA is considering scrapping ACORN and replacing it with a new, more reliable system.
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Topics
Accounting proceduresElectronic data processingAuditing standardsFederal agency accounting systemsFinancial recordsFinancial statement auditsInformation systemsInternal controlsInventory control systemsMotor vehicles