GSA Should Strengthen Its Management and Cost Control Over ADP Revolving Fund Activities

IMTEC-84-5: Published: Oct 25, 1983. Publicly Released: Oct 25, 1983.

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GAO reviewed the General Services Administration's (GSA) method of recovering and reporting operating expenses of the Automated Data Processing (ADP) Revolving Fund. The fund is reimbursable and is authorized to recover approximate operating costs for services provided through established programs.

GAO found that, in fiscal year 1982, the fund financed about $144 million in program activity under established programs. To ensure the financial integrity of individual fund programs and to present a reasonable statement of programmatic operating expenses, GSA periodically reviews the rates to recover approximate costs and to adjust them to ensure that each program is financially self-sufficient. GAO also found that GSA has not properly allocated appropriated costs to the fund and has not established adequate measures to assess the reasonableness of some program costs. As a result, GSA is billing agencies for some costs that are unrelated to the programs they are using, and financial reports do not reflect the true performance of fund activities.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: GSA is emphasizing requirements in the fiscal year 1985 operating budget.

    Recommendation: The Administrator of General Services should develop a method to revise user rates based on changes in actual costs.

    Agency Affected: General Services Administration

  2. Status: Closed - Implemented

    Comments: GSA is emphasizing requirements in the fiscal year 1985 operating budget.

    Recommendation: The Administrator of General Services should review costs associated with rates charged to benefiting agencies to ensure that they are reasonable, appropriate, and reflect approximate program costs.

    Agency Affected: General Services Administration

  3. Status: Closed - Implemented

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

    Recommendation: The Administrator of General Services should identify the staff performing fund functions and ensure that the salary and benefit expenses for only those personnel are paid from fund revenues.

    Agency Affected: General Services Administration

  4. Status: Closed - Implemented

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

    Recommendation: The Administrator of General Services should clearly identify the functions performed by each unit in support of fund programs and determine whether they directly support a specific fund program or are attributable to all fund programs.

    Agency Affected: General Services Administration

  5. Status: Closed - Implemented

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

    Recommendation: The Administrator of General Services should clearly distinguish ADP-related activities chargeable to the fund from those that are a normal part of the GSA mission.

    Agency Affected: General Services Administration

  6. Status: Closed - Implemented

    Comments: The review resulted in a work measurement study within GSA.

    Recommendation: The Administrator of General Services should strengthen performance measures for individual program results by reviewing meaningful performance criteria in addition to dollar volume of business.

    Agency Affected: General Services Administration

 

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