Review of Accounts Receivable at the General Services Administration
FGMSD-77-29: Published: Jul 27, 1977. Publicly Released: Jul 27, 1977.
- Full Report:
A review of the General Services Administration's (GSA) system of accounting for accounts receivable from the public showed that the system was, for the most part, operated effectively and in accordance with the accounting system approved by the Comptroller General in 1965. However, the accounting for and reporting of these receivables needed improvement.
One GSA fund was overstated by $69.9 million, and two others were understated by $4.1 million. About $9.3 million of long-term installments were improperly classified as current assets. Delinquent accounts were not promptly identified for followup action. This material inaccuracy in recording and reporting receivables indicated a need for improvement in the system of internal controls. The exclusion of delinquent accounts that were 30 to 60 days older than the GSA aging schedule precluded the prompt identification and subsequent collection of delinquent accounts. Inclusion of these delinquent accounts on the aging schedule would contribute to prompt collection action.
Recommendation for Executive Action
Comments: Please call 202/512-6100 for additional information.
Recommendation: The Office of Finance should improve the GSA internal control system by providing: effective supervisory review of significant adjusting entries to assure that they are valid and properly documented; documentary evidence linking individual transactions and adjustments to their summation in the ledger accounts; and classification of receivables which are not due within a year or less as noncurrent assets in the statement of financial condition. To assist in the prompt identification and followup of delinquent accounts, the Office of Finance should list all GSA accounts receivable over 30 days old on the monthly aging schedule and initiate prompt and adequate collection action.