Air Force's Progress in Implementing the Federal Managers' Financial Integrity Act

NSIAD-85-151: Published: Sep 27, 1985. Publicly Released: Sep 27, 1985.

Additional Materials:

Contact:

Martin M. Ferber
(202) 275-8412
contact@gao.gov

 

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

GAO reviewed the Air Force's continuing efforts to implement and comply with the Federal Managers' Financial Integrity Act (FMFIA) and assessed: (1) its progress in improving internal controls and accounting systems' compliance evaluations; and (2) the adequacy of the basis for the Air Force's letter to the Secretary of Defense, which stated that the objectives of FMFIA had been met.

GAO found that the Air Force has: (1) improved its internal control systems; (2) made progress toward correcting weaknesses; (3) improved its evaluation programs; and (4) established the overall framework for an effective program. However, more improvements are needed before it will have an adequate basis for determining that its internal controls, taken as a whole, comply with the requirements of FMFIA. To enhance its future basis for determining the overall status of its internal controls for reporting compliance with the requirements, the Air Force needs to improve: (1) guidance for performance and documentation of internal control reviews (ICR) and vulnerability assessments; (2) coverage of automatic data processing (ADP) application controls; (3) quality assurance reviews; (4) evaluation and testing of accounting systems in operation; and (5) analysis of its fiduciary and management accounting capabilities in nonconforming systems.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: The Air Force reported reasonable assurance again in its November 1986 annual FMFIA statement. However, it was much more explict as to why it felt so. The internal control evaluation program has been substantially improved during fiscal year (FY) 1986, and GAO has no further basis to continue to call for program changes.

    Recommendation: The Secretary of the Air Force should not report that the Air Force's systems of internal accounting and administrative control, taken as a whole, meet the requirements of FMFIA until the internal controls evaluation program is improved.

    Agency Affected: Department of Defense: Department of the Air Force

  2. Status: Closed - Implemented

    Comments: New internal control publications were issued in November 1986 and vulnerability assessments were redone after staff were trained. About 10 percent of the 414 functions were rated as highly or moderately vulnerable to mismanagement. Each will be reviewed. Accounting systems were inventoried during FY 1986 and DOD ADP guidance was incorporated into reviews.

    Recommendation: To form an adequate basis for determining that the requirements of FMFIA have been met, the Secretary of the Air Force should direct the Comptroller of the Air Force to ensure that: (1) managers who perform vulnerability assessments and ICR are adequately trained; (2) ADP general and application control reviews are incorporated into ICR; (3) Department of Defense (DOD) ADP Internal Control Guidelines are included as part of the Air Force's guidance and approach for consideration and evaluation of ADP internal controls; (4) responsible officials at all levels of the organization effectively perform their quality assurance responsibilities; (5) an inventory of accounting systems is promptly completed; and (6) appropriate manual and ADP accounting systems controls are tested in operation as an integral part of the evaluation process.

    Agency Affected: Department of Defense: Department of the Air Force

  3. Status: Closed - Not Implemented

    Comments: All systems are now scheduled for review over a 5-year period. In FY 1986, 7 of the 27 systems were reviewed and 8 segments were also reviewed in operation. Also, GAO is currently reviewing the Acquisition Management Information System's disbursement module. OASD(C) approved several problem areas, previously reported, as not being reported as material weaknesses this year.

    Recommendation: The Secretary of the Air Force should ensure that accounting systems not be reported in conformance with the Comptroller General's requirements, nor that nonconforming accounting systems satisfactorily support fiduciary and management accounting responsibilities until the Air Force's accounting systems have been adequately evaluated and tested in operation.

    Agency Affected: Department of Defense: Department of the Air Force

 

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