Internal Control Weaknesses in Army Data Processing Operations and Accounting and Financial Reporting
AFMD-93-16ML: Published: Nov 19, 1992. Publicly Released: Nov 19, 1992.
- Full Report:
GAO reported on internal control weaknesses in the Army Corps of Engineers' data processing operations and accounting and financial reporting processes. GAO noted that the Corps: (1) overused a transaction entry procedure that was primarily intended for correcting, but not entering, accounting data; (2) did not document data entries or maintain control logs; (3) allowed personnel to both prepare and approve accounting transactions, contrary to separation of duties standards; (4) allowed system accountants and contractor computer programmers unrestricted access to accounting system computer production programs; (5) lacked written policies and procedures governing accounting system software changes and testing and for reporting and documenting software problems; (6) lacked a formal contingency plan for disaster recovery and backup processing of accounting data; (7) did not implement a uniform general ledger account structure and used inaccurate, inadequate, and outdated instructions to extract data and report values; (8) did not record noncurrent receivables due from the public in its accounting system; and (9) lacked edit routines to ensure the accuracy of financial data received from field locations.