Reports & Testimonies

  • GAO’s recommendations database contains report recommendations that still need to be addressed.

    GAO’s recommendations help congressional and agency leaders prepare for appropriations and oversight activities, as well as help improve government operations. Recommendations remain open until they are designated as Closed-implemented or Closed-not implemented. You can explore open recommendations by searching or browsing.

    GAO's priority recommendations are those that we believe warrant priority attention. We sent letters to the heads of key departments and agencies, urging them to continue focusing on these issues. These recommendations are labeled as such. You can find priority recommendations by searching or browsing our open recommendations below, or through our mobile app.

  • Browse Open Recommendations

    Explore priority recommendations by subject terms or browse by federal agency

    Search Open Recommendations

    Search for a specific priority recommendation by word or phrase



  • Governing on the go?

    Our Priorities for Policy Makers app makes it easier for leaders to search our recommendations on the go.

    See the November 10th Press Release


  • Have a Question about a Recommendation?

    • For questions about a specific recommendation, contact the person or office listed with the recommendation.
    • For general information about recommendations, contact GAO's Audit Policy and Quality Assurance office at (202) 512-6100 or apqa@gao.gov.
  • « Back to Results List Sort by   

    Results:

    Subject Term: "Consolidated Financial Statements of the U.S. Government"

    8 publications with a total of 31 open recommendations including 23 priority recommendations
    Director: Dawn B. Simpson
    Phone: (202) 512-3406

    3 open recommendations
    including 3 priority recommendations
    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary to develop and implement procedures and metrics for monitoring the federal government's year-to-year progress in resolving intragovernmental differences for significant federal entities at the reciprocal category and trading partner levels.

    Agency: Department of the Treasury
    Status: Open
    Priority recommendation

    Comments: As of the completion of our fiscal year 2016 consolidated financial statements (CFS) audit, we identified this control deficiency related to monitoring intragovernmental differences. Treasury stated that it will continue to evolve its processes as deemed necessary to ensure that appropriate and effective metrics are deployed to measure and monitor agency performance. We will follow-up on progress made by Treasury and OMB as part of our fiscal year 2017 CFS audit, which is ongoing as of September 2017.
    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary to develop and implement a sufficient process for working with federal entities to reduce or resolve the need for significant adjustments to federal entity data submitted for the CFS.

    Agency: Department of the Treasury
    Status: Open
    Priority recommendation

    Comments: As of the completion of our fiscal year 2016 consolidated financial statements (CFS) audit, we identified this control deficiency related to significant adjustments to federal entity data submitted for the CFS. Treasury stated that it will continue to work with agencies to facilitate improvement of processes, minimizing the need for Treasury adjustments to agency reporting. We will follow-up on progress made by Treasury and OMB as part of our fiscal year 2017 CFS audit, which is ongoing as of September 2017.
    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB, to improve corrective action plans for (1) treaties and international agreements, (2) additional audit procedures for intragovernmental activity and balances, and (3) the Reconciliation Statements so that they include sufficient information to address the control deficiencies in these areas effectively.

    Agency: Department of the Treasury
    Status: Open
    Priority recommendation

    Comments: As of the completion of our fiscal year 2016 consolidated financial statements (CFS) audit, we identified improvements needed to corrective action plans in three areas. Treasury stated that its current remediation plan, including its various corrective action plans, is comprehensive, appropriate, and effective, with robust ongoing monitoring processes in place. However, we continue to believe that the corrective action plans in these three areas do not include sufficient information to effectively address related control deficiencies involving processes used to prepare the CFS. We will follow-up on progress made by Treasury and OMB as part of our fiscal year 2017 CFS audit, which is ongoing as of September 2017.
    Director: Dawn B. Simpson
    Phone: (202) 512-3406

    1 open recommendations
    including 1 priority recommendation
    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary to develop and implement procedures to determine whether user accounts already exist before establishing or recertifying user accounts in the Governmentwide Treasury Account Symbol Adjusted Trial Balance System or Governmentwide Financial Report System.

    Agency: Department of the Treasury
    Status: Open
    Priority recommendation

    Comments: As of the completion of our fiscal year 2016 consolidated financial statements (CFS) audit, Treasury agreed that this recommendation remained open. Treasury plans to implement processes to validate new users who do not already have an existing account in the Governmentwide Treasury Account Symbol Adjusted Trial Balance System (GTAS) or the Governmentwide Financial Report System (GFRS); and to ensure that users do not have conflicting roles or privileges. We will follow-up on progress made by Treasury as part of our fiscal year 2017 CFS audit, which is ongoing as of March 2017.
    Director: Asif A. Khan
    Phone: (202) 512-9869

    8 open recommendations
    including 8 priority recommendations
    Recommendation: To ensure that DFAS is able to obtain the necessary assurance that its contract pay end-to-end process can produce, maintain, and sustain accurate, complete, and timely information in support of the components' and DOD-wide financial improvement and audit readiness efforts, the Under Secretary of Defense (Comptroller)/Chief Financial Officer should direct the Director of the Defense Finance and Accounting Service to address deficiencies in its Discovery Phase planning activities for contract pay by documenting its contract pay end-to-end process by developing the necessary flowcharts and narratives for those processes excluded from the FIP.

    Agency: Department of Defense: Office of the Under Secretary of Defense (Comptroller)/Chief Financial Officer
    Status: Open
    Priority recommendation

    Comments: This recommendation remains open. On July 14, 2016, and August 10, 2016, we met with DFAS and Office of the Undersecretary of Defense (Comptroller) officials to discuss the status of the recommendations for this report, clarify the documentation DFAS provided so far and additional documentation needed to address this recommendation. In addition, we spoke with DFAS officials on September 20, 2016, to clarify additional questions they had on our documentation needs. As of October 2016, DFAS officials told us that they were still working on improvements to their process documentation and controls in the contract pay area. DFAS recently provided documentation to support its actions related to this recommendation and we will continue to review relevant documentation and monitor the actions taken by DFAS.
    Recommendation: To ensure that DFAS is able to obtain the necessary assurance that its contract pay end-to-end process can produce, maintain, and sustain accurate, complete, and timely information in support of the components' and DOD-wide financial improvement and audit readiness efforts, the Under Secretary of Defense (Comptroller)/Chief Financial Officer should direct the Director of the Defense Finance and Accounting Service to address deficiencies in its Discovery Phase planning activities for contract pay by assessing the materiality (i.e., dollar activity and risk factors) of its processes, systems, and controls.

    Agency: Department of Defense: Office of the Under Secretary of Defense (Comptroller)/Chief Financial Officer
    Status: Open
    Priority recommendation

    Comments: This recommendation remains open. On July 14, 2016, and August 10, 2016, we met with DFAS and Office of the Undersecretary of Defense (Comptroller) officials to discuss the status of the recommendations for this report, clarify the documentation DFAS provided so far and additional documentation needed to address this recommendation. In addition, we spoke with DFAS officials on September 20, 2016, to clarify additional questions they had on our documentation needs. As of October 2016, DFAS officials told us that they were still working on improvements to their process documentation and controls in the contract pay area. DFAS recently provided documentation to support its actions related to this recommendation and we will continue to review relevant documentation and monitor the actions taken by DFAS.
    Recommendation: To ensure that DFAS is able to obtain the necessary assurance that its contract pay end-to-end process can produce, maintain, and sustain accurate, complete, and timely information in support of the components' and DOD-wide financial improvement and audit readiness efforts, the Under Secretary of Defense (Comptroller)/Chief Financial Officer should direct the Director of the Defense Finance and Accounting Service to address deficiencies in its Discovery Phase planning activities for contract pay by completing a memorandum of understanding with each of the components.

    Agency: Department of Defense: Office of the Under Secretary of Defense (Comptroller)/Chief Financial Officer
    Status: Open
    Priority recommendation

    Comments: This recommendation remains open. On July 14, 2016, and August 10, 2016, we met with DFAS and Office of the Undersecretary of Defense (Comptroller) officials to discuss the status of the recommendations for this report, clarify the documentation DFAS provided so far and additional documentation needed to address this recommendation. In addition, we spoke with DFAS officials on September 20, 2016, to clarify additional questions they had on our documentation needs. As of October 2016, DFAS officials told us that they were still working on improvements to their process documentation and controls in the contract pay area. DFAS recently provided documentation to support its actions related to this recommendation and we will continue to review relevant documentation and monitor the actions taken by DFAS.
    Recommendation: To ensure that DFAS is able to obtain the necessary assurance that its contract pay end-to-end process can produce, maintain, and sustain accurate, complete, and timely information in support of the components' and DOD-wide financial improvement and audit readiness efforts, the Under Secretary of Defense (Comptroller)/Chief Financial Officer should direct the Director of the Defense Finance and Accounting Service to address deficiencies in its Discovery Phase testing activities by validating the completeness and accuracy of the populations of transactions used to perform testing.

    Agency: Department of Defense: Office of the Under Secretary of Defense (Comptroller)/Chief Financial Officer
    Status: Open
    Priority recommendation

    Comments: This recommendation remains open. On July 14, 2016, and August 10, 2016, we met with DFAS and Office of the Undersecretary of Defense (Comptroller) officials to discuss the status of the recommendations for this report, clarify the documentation DFAS provided so far and additional documentation needed to address this recommendation. In addition, we spoke with DFAS officials on September 20, 2016, to clarify additional questions they had on our documentation needs. As of October 2016, DFAS officials told us that they were still working on improvements to their process documentation and controls in the contract pay area. DFAS recently provided documentation to support its actions related to this recommendation and we will continue to review relevant documentation and monitor the actions taken by DFAS.
    Recommendation: To ensure that DFAS is able to obtain the necessary assurance that its contract pay end-to-end process can produce, maintain, and sustain accurate, complete, and timely information in support of the components' and DOD-wide financial improvement and audit readiness efforts, the Under Secretary of Defense (Comptroller)/Chief Financial Officer should direct the Director of the Defense Finance and Accounting Service to address deficiencies in its Discovery Phase testing activities by documenting and executing an audit strategy or plan for application-level testing of system controls.

    Agency: Department of Defense: Office of the Under Secretary of Defense (Comptroller)/Chief Financial Officer
    Status: Open
    Priority recommendation

    Comments: This recommendation remains open. On July 14, 2016, and August 10, 2016, we met with DFAS and Office of the Undersecretary of Defense (Comptroller) officials to discuss the status of the recommendations for this report, clarify the documentation DFAS provided so far and additional documentation needed to address this recommendation. In addition, we spoke with DFAS officials on September 20, 2016, to clarify additional questions they had on our documentation needs. As of October 2016, DFAS officials told us that they were still working on improvements to their process documentation and controls in the contract pay area. DFAS recently provided documentation to support its actions related to this recommendation and we will continue to review relevant documentation and monitor the actions taken by DFAS.
    Recommendation: To ensure that DFAS is able to obtain the necessary assurance that its contract pay end-to-end process can produce, maintain, and sustain accurate, complete, and timely information in support of the components' and DOD-wide financial improvement and audit readiness efforts, the Under Secretary of Defense (Comptroller)/Chief Financial Officer should direct the Director of the Defense Finance and Accounting Service to address deficiencies in its Discovery Phase testing activities by coordinating with the components to classify all identified deficiencies as control deficiencies, significant deficiencies, and material weaknesses.

    Agency: Department of Defense: Office of the Under Secretary of Defense (Comptroller)/Chief Financial Officer
    Status: Open
    Priority recommendation

    Comments: This recommendation remains open. On July 14, 2016, and August 10, 2016, we met with DFAS and Office of the Undersecretary of Defense (Comptroller) officials to discuss the status of the recommendations for this report, clarify the documentation DFAS provided so far and additional documentation needed to address this recommendation. In addition, we spoke with DFAS officials on September 20, 2016, to clarify additional questions they had on our documentation needs. As of October 2016, DFAS officials told us that they were still working on improvements to their process documentation and controls in the contract pay area. DFAS recently provided documentation to support its actions related to this recommendation and we will continue to review relevant documentation and monitor the actions taken by DFAS.
    Recommendation: To ensure that DFAS is able to obtain the necessary assurance that its contract pay end-to-end process can produce, maintain, and sustain accurate, complete, and timely information in support of the components' and DOD-wide financial improvement and audit readiness efforts, the Under Secretary of Defense (Comptroller)/Chief Financial Officer should direct the Director of the Defense Finance and Accounting Service to address deficiencies in its Corrective Action Phase activities by assessing the population of implemented corrective action plans to determine whether the deficiencies we found in our nongeneralizable sample of DFAS's corrective action plans are more wide spread in the population.

    Agency: Department of Defense: Office of the Under Secretary of Defense (Comptroller)/Chief Financial Officer
    Status: Open
    Priority recommendation

    Comments: This recommendation remains open. On July 14, 2016, and August 10, 2016, we met with DFAS and Office of the Undersecretary of Defense (Comptroller) officials to discuss the status of the recommendations for this report, clarify the documentation DFAS provided so far and additional documentation needed to address this recommendation. In addition, we spoke with DFAS officials on September 20, 2016, to clarify additional questions they had on our documentation needs. As of October 2016, DFAS officials told us that they were still working on improvements to their process documentation and controls in the contract pay area. DFAS recently provided documentation to support its actions related to this recommendation and we will continue to review relevant documentation and monitor the actions taken by DFAS.
    Recommendation: To ensure that DFAS is able to obtain the necessary assurance that its contract pay end-to-end process can produce, maintain, and sustain accurate, complete, and timely information in support of the components' and DOD-wide financial improvement and audit readiness efforts, the Under Secretary of Defense (Comptroller)/Chief Financial Officer should direct the Director of the Defense Finance and Accounting Service to address deficiencies in its Corrective Action Phase activities by revising its FIAR status reports to accurately reflect the current status of its audit readiness efforts.

    Agency: Department of Defense: Office of the Under Secretary of Defense (Comptroller)/Chief Financial Officer
    Status: Open
    Priority recommendation

    Comments: This recommendation remains open. On July 14, 2016, and August 10, 2016, we met with DFAS and Office of the Undersecretary of Defense (Comptroller) officials to discuss the status of the recommendations for this report, clarify the documentation DFAS provided so far and additional documentation needed to address this recommendation. In addition, we spoke with DFAS officials on September 20, 2016, to clarify additional questions they had on our documentation needs. As of October 2016, DFAS officials told us that they were still working on improvements to their process documentation and controls in the contract pay area. DFAS recently provided documentation to support its actions related to this recommendation and we will continue to review relevant documentation and monitor the actions taken by DFAS.
    Director: Gary Engel
    Phone: (202) 512-3406

    2 open recommendations
    including 2 priority recommendations
    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB, to establish and implement policies and procedures for accounting for and reporting all significant General Fund activity and balances, obtaining assurance on the reliability of the amounts, and reconciling the activity and balances between the General Fund and federal entities.

    Agency: Department of the Treasury
    Status: Open
    Priority recommendation

    Comments: As of the completion of our fiscal year 2016 consolidated financial statements (CFS) audit, Treasury and OMB agreed that this recommendation remained open. Treasury has established the General Fund as a federal reporting entity. In fiscal year 2017, the focus will be on preparing for the first financial audit of the General Fund. We will follow-up on progress made by Treasury and OMB as part of our fiscal year 2017 CFS audit, which is ongoing as of March 2017.
    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB, to establish a formalized process to require the performance of additional audit procedures specifically focused on intragovernmental activity and balances between federal entities to provide increased audit assurance over the reliability of such information.

    Agency: Department of the Treasury
    Status: Open
    Priority recommendation

    Comments: As of the completion of our fiscal year 2016 consolidated financial statements (CFS) audit, Treasury and OMB agreed that this recommendation remained open. As a result of multiple initiatives over the past few years, Treasury and OMB have seen a significant decrease in elimination differences of intragovernmental data submitted by federal entities. Therefore, Treasury and OMB have determined at this time there is not a justified need for the additional cost and burden on federal entities to implement additional audit procedures specifically focused on intragovernmental activity and balances. We will follow-up on progress made by Treasury and OMB as part of our fiscal year 2017 CFS audit, which is ongoing as of March 2017.
    Director: Asif A. Khan
    Phone: (202) 512-9869

    6 open recommendations
    Recommendation: To improve the Army's implementation of the FIAR Guidance for its General Fund SBR FIP for budget execution and facilitate remaining efforts to achieve SBR auditability, the Assistant Secretary of the Army, Financial Management and Comptroller should identify activity attributable to assessable units associated with service provider systems and business processes having a significant impact on the Army's SBR.

    Agency: Department of Defense: Department of the Army: Office of the Assistant Secretary for Financial Management and Comptroller
    Status: Open

    Comments: The Army concurred with this recommendation. In March 2015, Army officials indicated that the Army leveraged object class codes in its enterprise resource planning (ERP) systems to stratify business processes that have a significant impact on the Schedule of Budgetary Activity for fiscal year 2015 activity. The Army provided documentation supporting this effort; however, this documentation did not identify all activity attributable to assessable units associated with service provider systems and business processes having a significant impact on the Army's Statement of Budgetary Resources. In August 2016, we requested additional information from the Army. In November 2016, an Army representative indicated that the estimated timing for completing efforts to address this recommendation was the second quarter of 2017. We requested updates on the status of efforts to address this recommendation and as of August 2017, we have not received such an update.
    Recommendation: To improve the Army's implementation of the FIAR Guidance for its General Fund SBR FIP for budget execution and facilitate remaining efforts to achieve SBR auditability, the Assistant Secretary of the Army, Financial Management and Comptroller should coordinate efforts with service providers to obtain and document within memorandum of understanding memorandums of understanding a shared understanding of roles and responsibilities for processing Army data.

    Agency: Department of Defense: Department of the Army: Office of the Assistant Secretary for Financial Management and Comptroller
    Status: Open

    Comments: The Army concurred with this recommendation. The Army established a Mission Work Agreement (MWA) with Defense Finance and Accounting Service (DFAS), its most significant service provider, and documented concept of operations (CONOPS) regarding various business processes, such as civilian pay and Fund Balance with Treasury. However, the MWA and CONOPS did not include sufficient detail required to adequately understand roles and responsibilities for processing and reporting the Army's financial data. In January 2016, the Army indicated that it was developing a corrective action plan to formalize policies, procedures, and processes to assess third party providers that host or manage the Army's financial systems and data and will use this assessment to clarify its understanding of shared roles and responsibilities for processing Army data. According to the Army, this effort is expected to be completed the first quarter of fiscal year 2017. In August 2017 we requested an update on the status of efforts to address this recommendation from the Army point of contact.
    Recommendation: To improve the Army's implementation of the FIAR Guidance for its General Fund SBR FIP for budget execution and facilitate remaining efforts to achieve SBR auditability, the Assistant Secretary of the Army, Financial Management and Comptroller should completely and accurately document the linkage of financial reporting objectives to control activities.

    Agency: Department of Defense: Department of the Army: Office of the Assistant Secretary for Financial Management and Comptroller
    Status: Open

    Comments: The Army concurred with this recommendation. In June 2015, Army officials indicated that the Army's four financial reporting objectives (FROs) have not yet been linked to control activities. Army officials stated that the Army is continuing to analyze collection, disbursement, and Fund Balance with Treasury processes and anticipates linking these FROs to control activities based on these efforts. We requested updates on the status of efforts to address this recommendation and as of August 2017, we have not received such an update.
    Recommendation: To improve the Army's implementation of the FIAR Guidance for its General Fund SBR FIP for budget execution and facilitate remaining efforts to achieve SBR auditability, the Assistant Secretary of the Army, Financial Management and Comptroller should document criteria and processes for identifying key information technology systems that have a significant impact on the Army's SBR audit readiness.

    Agency: Department of Defense: Department of the Army: Office of the Assistant Secretary for Financial Management and Comptroller
    Status: Open

    Comments: The Army concurred with this recommendation. In March 2015, Army officials indicated that the Army was in the process of identifying IT systems with a significant impact on the Army's Statement of Budgetary Resources (SBR) audit readiness. Furthermore, Army officials stated that for the fiscal year 2015 Schedule of Budgetary Activity Audit, the independent public accountant was conducting walkthroughs and assessing information technology systems for significant impact on Army's SBR audit readiness. In August 2016, we requested an update on the status of efforts to address this recommendation. In November 2016, an Army representative indicated that efforts were completed and a list of the criteria and processes would be provided to us. Subsequently, we requested a status update and as of August 2017, we have not received such an update.
    Recommendation: To improve the Army's implementation of the FIAR Guidance for its General Fund SBR FIP for budget execution and facilitate remaining efforts to achieve SBR auditability, the Assistant Secretary of the Army, Financial Management and Comptroller should obtain and assess the results of service provider SSAE No. 16 examinations upon completion to determine the adequacy of internal controls and document complete end-to-end business processes.

    Agency: Department of Defense: Department of the Army: Office of the Assistant Secretary for Financial Management and Comptroller
    Status: Open

    Comments: The Army concurred with this recommendation. As of January 2016, Army officials indicated that the Army continued to assess SSAE 16 reports including complimentary controls and incorporating end-to-end business processes as applicable. According to the Army, the estimated completion date for these efforts was the fourth quarter of fiscal year 2016, which in November 2016, was revised to the second quarter of fiscal year 2017. We requested updates on the status of efforts to address this recommendation and as of August 2017, we have not received such an update.
    Recommendation: To improve the Army's implementation of the FIAR Guidance for its General Fund SBR FIP for budget execution and facilitate remaining efforts to achieve SBR auditability, the Assistant Secretary of the Army, Financial Management and Comptroller should correct significant deficiencies or material weaknesses identified before asserting audit readiness and engaging an IPA to validate the assertion.

    Agency: Department of Defense: Department of the Army: Office of the Assistant Secretary for Financial Management and Comptroller
    Status: Open

    Comments: The Army concurred with this recommendation. In March 2015, Army officials indicated that the Army was still working to resolve identified significant deficiencies and material weaknesses. In January 2016, Army officials indicated that the Army was assessing findings from an Independent Public Accountant in connection with its audit of Army's fiscal year 2015 Schedule of Budgetary Activity to identify deficiencies identified during previous audit readiness efforts. Repeat findings were incorporated into corrective action plans (CAP). According to the Army's January 8, 2016 CAP status report, estimated completion dates for addressing most of the findings identified were not yet determined. Since August 2016, we have requested updates on the status of efforts to address this recommendation and as of August 2017, we have not received such an update.
    Director: Khan, Asif A
    Phone: (202) 512-9869

    2 open recommendations
    Recommendation: The Secretary of Defense should direct the Under Secretary of Defense, in his capacity as the Chief Management Officer and in consultation with the Under Secretary of Defense (Comptroller), to design and implement department-level policies and detailed procedures for FIAR Plan risk management that incorporate the five guiding principles for effective risk management. The following are examples of key features of each of the guiding principles that DOD should, at a minimum, address in its policies and procedures. (1) Identify risks. Generate a comprehensive and continuously updated list of risks that includes the root cause of each risk, audit area(s) each risk will affect, and the potential consequences if a risk is not effectively mitigated. (2) Analyze risks. Consult with key stakeholders, including program managers; use analytical techniques, such as risk categorization, risk urgency assessment, or sensitivity analysis; and determine the impact of the identified risks on individual DOD components' abilities to achieve audit readiness. (3) Plan for risk mitigation. Assign responsibility or ownership of the risk mitigation actions, define roles and responsibilities in executing mitigation plans, establish deadlines or milestones for individual mitigation actions, and estimate resource needs. (4) Implement risk mitigation plan. Document the implementation of mitigation actions, develop appropriate metrics that allow for tracking of progress, and validate reported metrics. (5) Monitor risks. Track identified risks and assess the effectiveness of implemented mitigation actions on a continuous basis, including identifying and planning for new risks.

    Agency: Department of Defense
    Status: Open

    Comments: DOD partially concurred with our recommendation. While DOD did concur with our assessment that they did not have a risk management policy and procedures related to implementing the FIAR guidance. They did not concur with our assessment of the overall environment of DOD's risk management of the FIAR initiative. DOD has taken steps to address our recommendation including implementing an NFR tracker and standard operating procedures designed to track DOD component material weaknesses. DOD has also documented a critical path and milestones in Appendix F of their FIAR Guidance; military component tasks and milestones in appendix G of the FIAR Guidance; and audit readiness deal breakers, now referred to as critical capabilities. However, while these are positive actions, they do not address our recommendation for DOD to implement risk management policies and procedures for FIAR implementation. Further, DOD has not provided GAO with evidence of planned actions it summarized in its agency comments. Specifically, DOD has not provided documentation related to (1) improving risk management documentation, (2) reinstating the DOD probability and impact matrix, and (3) re-evaluation of metrics to monitor progress and risk of audit readiness. Lastly, DOD's tracking of military component material weaknesses does not identify risks to audit readiness, or the agencies capabilities to manage risks to audit readiness. According to the May 2017 FIAR Status Update for the HASC Panel Recommendations, DOD has reinforced the importance of internal controls over areas of significant risk by updating the FIAR Guidance with a new chapter dedicated to internal controls. DOD has also changed how they respond to recommendation follow-up by way of the Washington Headquarters Service (WHS). We are currently waiting for a POC to be assigned. We will continue to evaluate the status of actions to address this recommendation.
    Recommendation: The Secretary of Defense should direct the Under Secretary of Defense, in his capacity as the Chief Management Officer and in consultation with the Under Secretary of Defense (Comptroller), to consider and incorporate, as appropriate, the Navy's and DLA's risk management practices in department-level policies and procedures.

    Agency: Department of Defense
    Status: Open

    Comments: DOD has changed how they respond to recommendation follow-up by way of the Washington Headquarters Service (WHS). We are currently waiting for a POC to be assigned. We will continue to evaluate the status of actions to address this recommendation.
    Director: Engel, Gary T
    Phone: (202)512-8815

    2 open recommendations
    including 2 priority recommendations
    Recommendation: To improve the reliability of the information presented in the CFS budget statements, the Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to establish and implement effective procedures for reporting amounts in the CFS budget statements that are fully consistent with the underlying information in significant federal entities' audited financial statements and other financial data.

    Agency: Department of the Treasury
    Status: Open
    Priority recommendation

    Comments: As of the completion of our fiscal year 2016 consolidated financial statements (CFS) audit, Treasury and OMB agreed that this recommendation remained open. Treasury partnered with the Federal Accounting Standards Advisory Board (FASAB) to develop a Statement of Federal Financial Accounting Standards exposure draft that identifies items needed to reconcile net cost to outlays at the entity level, with a focus on demonstrating consistency with significant entities' audited financial statements. We will follow-up on progress made by Treasury and OMB as part of our fiscal year 2017 CFS audit, which is ongoing as of March 2017.
    Recommendation: To improve the reliability of the information presented in the CFS budget statements, the Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to establish and implement effective procedures for identifying and reporting all items needed to prepare the CFS budget statements.

    Agency: Department of the Treasury
    Status: Open
    Priority recommendation

    Comments: As of the completion of our fiscal year 2016 consolidated financial statements (CFS) audit, Treasury and OMB agreed that this recommendation remained open. Treasury has improved its process for preparing the budget statements over the past three years and is continuing to do so. For example, Treasury has developed a reconciliation process to ensure that all cash related amounts reconcile on a monthly basis. We will follow-up on progress made by Treasury and OMB as part of our fiscal year 2017 CFS audit, which is ongoing as of March 2017.
    Director: Engel, Gary T
    Phone: (202)512-8815

    7 open recommendations
    including 7 priority recommendations
    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to help ensure that agencies provide adequate information in their legal representation letters regarding the expected outcome of the cases.

    Agency: Department of the Treasury
    Status: Open
    Priority recommendation

    Comments: As of the completion of our fiscal year 2016 consolidated financial statements (CFS) audit, Treasury and OMB agreed that this recommendation remained open. Treasury documented the processes that federal entities are following in using the "unable to determine" expected outcome of legal cases. Treasury and OMB will continue to work with GAO to close any remaining gaps. We will follow-up on progress made by Treasury and OMB as part of our fiscal year 2017 CFS audit, which is ongoing as of March 2017.
    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to establish written policies and procedures to help ensure that major treaty and other international agreement information is properly identified and reported in the CFS. Specifically, these policies and procedures should require that agencies develop a detailed schedule of all major treaties and other international agreements that obligate the U.S. government to provide cash, goods, or services, or that create other financial arrangements that are contingent on the occurrence or nonoccurrence of future events (a starting point for compiling these data could be the State Department's Treaties in Force).

    Agency: Department of the Treasury
    Status: Open
    Priority recommendation

    Comments: As of the completion of our fiscal year 2016 consolidated financial statements (CFS) audit, Treasury and OMB agreed that this recommendation remained open. Treasury and OMB plan to leverage the existing process and oversight followed by the Department of State to enhance the guidance issued to federal entities to ensure the proper reporting and accounting on treaties and international agreements. We will follow-up on progress made by Treasury and OMB as part of our fiscal year 2017 CFS audit, which is ongoing as of March 2017.
    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to establish written policies and procedures to help ensure that major treaty and other international agreement information is properly identified and reported in the CFS. Specifically, these policies and procedures should require that agencies classify all such scheduled major treaties and other international agreements as commitments or contingencies.

    Agency: Department of the Treasury
    Status: Open
    Priority recommendation

    Comments: As of the completion of our fiscal year 2016 consolidated financial statements (CFS) audit, Treasury and OMB agreed that this recommendation remained open. Treasury and OMB plan to leverage the existing process and oversight followed by the Department of State to enhance the guidance issued to federal entities to ensure the proper reporting and accounting on treaties and international agreements. We will follow-up on progress made by Treasury and OMB as part of our fiscal year 2017 CFS audit, which is ongoing as of March 2017.
    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to establish written policies and procedures to help ensure that major treaty and other international agreement information is properly identified and reported in the CFS. Specifically, these policies and procedures should require that agencies disclose in the notes to the CFS amounts for major treaties and other international agreements that have a reasonably possible chance of resulting in a loss or claim as a contingency.

    Agency: Department of the Treasury
    Status: Open
    Priority recommendation

    Comments: As of the completion of our fiscal year 2016 consolidated financial statements (CFS) audit, Treasury and OMB agreed that this recommendation remained open. Treasury and OMB plan to leverage the existing process and oversight followed by the Department of State to enhance the guidance issued to federal entities to ensure the proper reporting and accounting on treaties and international agreements. We will follow-up on progress made by Treasury and OMB as part of our fiscal year 2017 CFS audit, which is ongoing as of March 2017.
    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to establish written policies and procedures to help ensure that major treaty and other international agreement information is properly identified and reported in the CFS. Specifically, these policies and procedures should require that agencies disclose in the notes to the CFS amounts for major treaties and other international agreements that are classified as commitments and that may require measurable future financial obligations.

    Agency: Department of the Treasury
    Status: Open
    Priority recommendation

    Comments: As of the completion of our fiscal year 2016 consolidated financial statements (CFS) audit, Treasury and OMB agreed that this recommendation remained open. Treasury and OMB plan to leverage the existing process and oversight followed by the Department of State to enhance the guidance issued to federal entities to ensure the proper reporting and accounting on treaties and international agreements. We will follow-up on progress made by Treasury and OMB as part of our fiscal year 2017 CFS audit, which is ongoing as of March 2017.
    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to establish written policies and procedures to help ensure that major treaty and other international agreement information is properly identified and reported in the CFS. Specifically, these policies and procedures should require that agencies take steps to prevent major treaties and other international agreements that are classified as remote from being recorded or disclosed as probable or reasonably possible in the CFS.

    Agency: Department of the Treasury
    Status: Open
    Priority recommendation

    Comments: As of the completion of our fiscal year 2016 consolidated financial statements (CFS) audit, Treasury and OMB agreed that this recommendation remained open. Treasury and OMB plan to leverage the existing process and oversight followed by the Department of State to enhance the guidance issued to federal entities to ensure the proper reporting and accounting on treaties and international agreements. We will follow-up on progress made by Treasury and OMB as part of our fiscal year 2017 CFS audit, which is ongoing as of March 2017.
    Recommendation: GAO recommends that the note disclosure for stewardship responsibilities related to the risk assumed for federal insurance and guarantee programs meet the requirements of Statement of Federal Financial Accounting Standards No. 5, Accounting for Liabilities of the Federal Government, paragraph 106, that requires that when financial information pursuant to Financial Accounting Standards Board standards on federal insurance and guarantee programs conducted by government corporations is incorporated in general purpose financial reports of a larger federal reporting entity, the entity should report as required supplementary information what amounts and periodic change in those amounts would be reported under the "risk assumed" approach.

    Agency: Department of the Treasury
    Status: Open
    Priority recommendation

    Comments: As of the completion of our fiscal year 2016 consolidated financial statements (CFS) audit, Treasury agreed that this recommendation remained open. Treasury will continue to request this information from agencies at interim and through year-end reporting requirements in the Treasury Financial Manual 2-4700. In addition, Treasury will continue to participate on the Federal Accounting Standards Advisory Board (FASAB) Risk Assumed Task Force and implement any related changes corresponding to the issuance of revised or new federal accounting standards. We will follow-up on progress made by Treasury as part of our fiscal year 2017 CFS audit, which is ongoing as of March 2017.