Audit Coverage of Internal Financial Operations
FGMSD-76-84: Published: Oct 8, 1976. Publicly Released: Oct 8, 1976.
- Full Report:
The Accounting and Auditing Act of 1950 requires the head of each agency to establish and maintain systems of internal control, including appropriate internal audit, in order to provide effective control over and accountability for all funds, property, and other assets for which the agency is responsible. The internal audit operations of the Department of Agriculture were reviewed to determine the extent to which financial audits are made of the Department's revenues, expenditures, assets, and liabilities. The review concentrated on audits of internal financial areas performed by the Office of Audit during fiscal years 1973 through 1975, with emphasis on fiscal year 1975 coverage.
The Office of Audit issued 8,289 audit reports during this period including 2,576 in fiscal year 1975. Almost all of the reports included a review of some aspect of financial operations as well as compliance with laws and regulations, reviews of the economy and efficiency of operations, or results of programs. About 67 percent of the audit effort was expended on internal operations and the remainder on external grants and contracts. The 1975 audits covered the internal financial areas of cash, receivables, advances, property, liabilities, administrative control of funds, revenues and costs , and financial reports for programs representing over 99 percent of Agriculture's obligations. The current audit effort provides adequate internal financial audit coverage for most of the operations of the Department.