Controls Over Peace Corps Revenue and Expense Transactions
FGMSD-81-7: Published: Oct 8, 1980. Publicly Released: Oct 8, 1980.
- Full Report:
GAO surveyed accounting controls over expenditure and revenue transactions at Peace Corps activities in Guatemala, Ecuador, and Jamaica. Questionnaires designed to identify potential internal control problems were the basis of GAO interviews and discussions with responsible officials. When responses indicated potential weaknesses, GAO tested selected transactions to determine if the weaknesses existed. GAO only verified the existence of the weaknesses and did not attempt to establish their extent or the precise corrective actions needed.
The survey disclosed weaknesses in controls over cash receipts, accounts receivable, and imprest funds at the Peace Corps in Jamaica; and weaknesses in controls over imprest funds at the Peace Corps in Guatemala and Ecuador. In Jamaica, control weaknesses included: (1) receipts were not being issued for each collection; (2) collections were not deposited promptly as required; (3) collection efforts on amounts due for personal vehicle use were not adequate; (4) documentation requirements for petty cash disbursements were sometimes not followed; and (5) imprest funds were not adequately safeguarded and controlled. The country director generally agreed with GAO findings and indicated that he would take the corrective actions needed. Since the embassies in Guatemala and Ecuador perform most accounting functions in those countries, Peace Corps accounting operations are limited. The two posts do operate imprest funds, and GAO noted that they were not performing unannounced cash verifications as required. These weaknesses were discussed with the country directors and they promised to take corrective actions.
Recommendation for Executive Action
Comments: GAO has no information on the actions taken by the agency.
Recommendation: The Director of ACTION should follow up on the adequacy of these corrections.
Agency Affected: ACTION