Federal Research: Assessment of the Financial Audit for SEMATECH's Activities in 1990
RCED-92-97
Published: Apr 09, 1992. Publicly Released: Apr 09, 1992.
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Highlights
Pursuant to a legislative requirement, GAO reviewed an independent accountant's audit of SEMATECH, Inc.'s financial statements for the year ending December 31, 1990.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | If the Department of Defense continues to fund SEMATECH activities or participates in other joint industry-government consortia, the Secretary of Defense should require that funds be dispersed through a letter of credit rather than by making advanced payments to the consortium. |
DOD implemented the recommendation when it reviewed its grant to SEMATECH in October 1992. Under Grant Modification 12, SEMATECH's quarterly contributions statements must show the expenditure projection for the subsequent quarter. During each quarter, three equal monthly payments based on that quarterly expenditure plan will be made.
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Topics
Accounting proceduresAdministrative costsAdvance fundingAuditsDefense industryElectronic equipment industryFinancial recordsInternal controlsPrivate sectorFinancial statements