Auditing and Financial Management:
Improvements Needed in Recording and Reporting Appropriation Data at Fiscal Year End
FGMSD-76-63, Feb 17, 1977
The Health Services Administration of the Department of Health, Education, and Welfare has serious weaknesses in its accounting systems. These weaknesses may have led to violations of Antideficiency Act which prohibits Federal agencies from engaging in programs that will lead to deficits in funds.
To force its own and Treasury's accounts into agreement as of June 30, 1974, the Health Services Administration made unsupported adjustments totaling $16 million of which $2 million involved the illegal transfer of funds between appropriation year accounts. Also, the unexpended balance of appropriations as of June 30, 1975, differed from amounts shown on the Treasury's books by $190 million. Improvements are needed in accounting for receivables. Officials do not agree that adjustments were illegal, but they indicate that such adjustments are no longer being made.
- Review Pending
- Closed - implemented
- Closed - not implemented
Recommendation for Executive Action
Recommendation: The Health Services Administration should: improve accounting and reporting of appropriation data so that reports to Treasury are accurate and properly verified; determine the reasons for discrepancies in the FY 74 and FY 75 reports and adjust appropriation accounts as necessary based on the results of the reconciliation; and determine whether a violation of the Antideficiency Act has occurred and adjust accounts as necessary.
Comments: Please call 202/512-6100 for additional information.