Review of the Department of Labor's Accounting System for Recording and Reporting Accounts Receivable from the Public

FGMSD-77-31: Published: Aug 17, 1977. Publicly Released: Aug 17, 1977.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

The accounts receivable recorded in the accounting system approved by the Comptroller General in October 1972 for the Department of Labor were not accurate. As a result, the balance of accounts receivable from the public reported to the Department of the Treasury was inaccurate. Recorded and reported accounts receivable due from the public contained both overstatements and understatements.

As of September 30, 1976, the Department of Labor reported accounts receivable from the public of $3,663,717, which were primarily benefit payments due from employers and overpayments due from recipients. The accounts receivable were understated by a net of $1,729,146 as a result of omissions, errors, and misclassifications. The reported accounts receivable from the public were overstated by $2,161,632 and understated by $3,890,778. The lack of close supervision appeared to be one of the main contributing factors causing these errors.

Recommendation for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: To assure that amounts due from the public are accurately compiled and reported as accounts receivable on the Department of Labor's statement of financial condition, the Assistant Secretary for Administration and Management of the Department of Labor should emphasize to the Office of Accounting personnel the need for increased supervisory review over the preparation of financial statements and reports to the Department of the Treasury.

    Agency Affected:

 

Explore the full database of GAO's Open Recommendations »

Sep 20, 2016

Sep 6, 2016

Aug 19, 2016

Aug 12, 2016

Jul 29, 2016

Jul 28, 2016

Jul 13, 2016

Jul 11, 2016

Jun 13, 2016

Looking for more? Browse all our products here