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    Results:

    Subject Term: Accounting

    10 publications with a total of 19 open recommendations including 2 priority recommendations
    Director: Asif A. Khan
    Phone: (202) 512-9869

    2 open recommendations
    Recommendation: The Assistant Secretary of the Army for Financial Management and Comptroller should ensure that the Working Group identifies and analyzes the full population of manual unsupported JVs at the transaction level and in Defense Departmental Reporting System-Audited Financial Statements and determines the root causes for these JVs. (Recommendation 1)

    Agency: Department of Defense: Department of the Army
    Status: Open

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
    Recommendation: The Assistant Secretary of the Army for Financial Management and Comptroller should work with Defense Finance and Accounting Service to enhance the monthly JV metrics report or develop another method to sufficiently monitor the extent to which the Working Group has identified the root causes of unsupported JVs and to determine the extent to which unsupported JVs are being reduced based on the implemented corrective actions. (Recommendation 2)

    Agency: Department of Defense: Department of the Army
    Status: Open

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
    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: 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: Clark, Cheryl E
    Phone: (202)512-9377

    3 open recommendations
    Recommendation: The Acting Commissioner of Internal Revenue should direct the appropriate IRS officials to perform a risk assessment to determine the appropriate level of Integrated Data Retrieval System (IDRS) access that should be granted to employee groups that handle hard-copy taxpayer receipts and related sensitive taxpayer information as part of their job responsibilities.

    Agency: Department of the Treasury: Internal Revenue Service
    Status: Open

    Comments: According to IRS, a risk assessment was performed to determine the appropriate level of IDRS access that should be granted to employee groups that handle hard-copy taxpayer receipts and related sensitive taxpayer information as part of their job responsibilities. However, during our fiscal year 2016 audit, we identified a group of employees at an SCC who handle hard-copy taxpayer receipts and related sensitive taxpayer information and can make adjustments to taxpayer accounts. Based on the information obtained, it is unclear whether the risks associated with these employees were considered in a risk assessment. We will continue to evaluate IRS's actions to address this recommendation during our fiscal year 2017 audit.
    Recommendation: The Acting Commissioner of Internal Revenue should direct the appropriate IRS officials to, based on the results of the risk assessment, update the Internal Revenue Manual (IRM) accordingly to specify the appropriate level of IDRS access that should be allowed for (1) remittance perfection technicians and (2) all other employee groups with IDRS access that handle hard-copy taxpayer receipts and related sensitive information as part of their job responsibilities.

    Agency: Department of the Treasury: Internal Revenue Service
    Status: Open

    Comments: As a result of its risk assessment efforts thus far, IRS updated the IRM to restrict the use of certain IDRS command codes for remittance perfection technicians. In addition, in May 2016, IRS reassessed the risks at its TACs, including the specific risks and mitigating factors associated with allowing TAC employees to process taxpayer remittances and to adjust taxpayer accounts. However, IRS did not update the IRM to reflect the conclusions from the risk assessment related to TAC employees. Further, during our fiscal year 2016 audit, we identified a group of employees at an SCC who handle hard-copy taxpayer receipts and related sensitive taxpayer information and can make adjustments to taxpayer accounts. Based on the information obtained, it is unclear whether the risks associated with these employees were considered in a risk assessment. We will continue to evaluate IRS's actions to address this recommendation during our fiscal year 2017 audit.
    Recommendation: The Acting Commissioner of Internal Revenue should direct the appropriate IRS officials to establish procedures to implement the updated IRM, including required steps to follow to prevent (1) remittance perfection technicians and (2) all other employee groups that handle hard-copy taxpayer receipts and related sensitive information as part of their job responsibilities from gaining access to command codes not required as part of their designated job duties.

    Agency: Department of the Treasury: Internal Revenue Service
    Status: Open

    Comments: As a result of its risk assessment efforts thus far, IRS updated the IRM to include procedures to restrict the use of certain IDRS command codes for remittance perfection technicians. However, the IRM has not been updated based on the results of the risk assessment related to TAC employees and, if applicable, other employees who have access to sensitive command codes and handle hard-copy taxpayer receipts and related sensitive information as part of their job duties. We will continue to evaluate IRS's actions to address this recommendation during our fiscal year 2017 audit.
    Director: Khan, Asif A
    Phone: (202)512-9869

    3 open recommendations
    Recommendation: To improve the development, implementation, documentation, and oversight of the department's financial management improvement efforts, and to ensure that the Air Force develops and implements its Financial Improvement Plan in accordance with the FIAR Guidance, the Secretary of Defense should direct the Secretary of the Air Force to ensure that the Air Force's Financial Improvement Plans include documentation that the Air Force performed a reconciliation of the complete population of transactions for an assessable unit to the relevant general ledger(s) and to the amount(s) reported in the financial statements, including researching and resolving reconciling items.

    Agency: Department of Defense
    Status: Open

    Comments: The Department of Defense (DOD) concurred with this recommendation. In November 2015, an independent public accountant (IPA) issued a disclaimer of opinion in connection with its audit of Air Force's fiscal year 2015 General Fund Schedule of Budgetary Activity (SBA) because Air Force was unable to provide sufficient audit evidence to provide a basis for an audit opinion. In addition, the IPA specifically identified Air force's inability to validate the completeness of transactions underlying the SBA as one of three material weaknesses in internal controls over financial reporting. We followed up with DOD officials in August 2017 and have not been able to obtain documentation indicating that actions were taken to address this recommendation. As a result, this recommendation remains open.
    Recommendation: To improve the development, implementation, documentation, and oversight of the department's financial management improvement efforts, and to improve DOD's monitoring and oversight of FIP activities, the Secretary of Defense should direct the Secretary of the Navy to ensure that all responsible parties within the Navy, including the Assistant Secretary of the Navy (Financial Management and Comptroller), carry out their responsibilities for ensuring that FIP development and implementation complies with the FIAR Guidance and that the FIP contains sufficient information to indicate audit readiness before it is signed.

    Agency: Department of Defense
    Status: Open

    Comments: The Department of Defense (DOD) concurred with this recommendation. In February 2016, an independent public accountant (IPA) issued a disclaimer of opinion in connection with its audit of Navy's fiscal year 2015 General Fund Schedule of Budgetary Activity because Navy was unable to provide sufficient audit evidence regarding its completeness and accuracy. In addition, the IPA identified three material weaknesses in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of its financial statements will not be prevented, or detected and corrected, on a timely basis. Ensuring the completeness and accuracy of financial reports are key elements of the FIAR Guidance. We followed up with DOD officials in August 2017 and have not been able to obtain documentation indicating that actions were taken to address this recommendation. As a result, this recommendation remains open.
    Recommendation: To improve the development, implementation, documentation, and oversight of the department's financial management improvement efforts, and to improve DOD's monitoring and oversight of FIP activities, the Secretary of Defense should direct the Secretary of the Air Force to ensure that all responsible parties within the Air Force, including the Assistant Secretary of the Air Force (Financial Management and Comptroller) carry out their responsibilities for ensuring that FIP development and implementation complies with the FIAR Guidance and that the FIP contains sufficient information to indicate audit readiness before it is signed.

    Agency: Department of Defense
    Status: Open

    Comments: The Department of Defense (DOD) concurred with this recommendation. In November 2016, an independent public accountant (IPA) issued a disclaimer of opinion in connection with its audit of Air Force's fiscal year 2015 General Fund Schedule of Budgetary Activity (SBA) because Air Force was unable to provide sufficient audit evidence to provide a basis for an audit opinion. In addition, the IPA identified three material weaknesses in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of its financial statements will not be prevented, or detected and corrected, on a timely basis. Ensuring the completeness and accuracy of financial reports are key elements of the DOD FIAR Guidance. We followed up with DOD officials in August 2017 and have not been able to obtain documentation of actions taken to address this recommendation. As a result, this recommendation remains open.
    Director: Clark, Cheryl E
    Phone: (202)512-9521

    3 open recommendations
    Recommendation: Based on a review of all existing contracts under $100,000 without an appointed COTR that should require contract employees to obtain favorable background investigation results, the Commissioner of the IRS should direct the appropriate IRS officials to amend those contracts to require that favorable background investigations be obtained for all relevant contract employees before routine, unescorted, unsupervised physical access to taxpayer information is granted.

    Agency: Department of the Treasury: Internal Revenue Service
    Status: Open

    Comments: According to IRS, it has completed its contract review and made appropriate modifications as of July 2016. However, the modifications to the contracts were not made available for our review during the fiscal year 2016 audit. We will continue to evaluate IRS's actions to address this recommendation during our fiscal year 2017 audit.
    Recommendation: The Commissioner of the IRS should direct the appropriate IRS officials to establish a policy requiring collaborative oversight between IRS's key offices in determining whether potential service contracts involve routine, unescorted, unsupervised physical access to taxpayer information, thus requiring background investigations, regardless of contract award amount. This policy should include a process for the requiring business unit to communicate to the Office of Procurement and the Human Capital Office the services to be provided under the contract and any potential exposure of taxpayer information to contract employees providing the services, and for all three units to (1) evaluate the risk of exposure of taxpayer information prior to finalizing and awarding the contract and (2) ensure that the final contract requires favorable background investigations as applicable, commensurate with the assessed risk.

    Agency: Department of the Treasury: Internal Revenue Service
    Status: Open

    Comments: IRS's efforts to address this recommendation are ongoing. IRS stated that during fiscal year 2017, several internal organizations will partner to identify the remaining actions needed to address this recommendation. According to IRS, these actions include developing policies and procedures to reasonably assure that (1) oversight between IRS's key offices is conducted to determine whether potential service awards IRS enters into involve routine, unescorted, unsupervised physical access to taxpayer information by contractors, thus requiring background investigations, and (2) the resulting processes make clear who is responsible for completing the various steps, as well as who must maintain documentation of the approved access determination prior to the contractor being allowed to provide the services. We will continue to evaluate IRS's actions to address this recommendation during our fiscal year 2017 audit.
    Recommendation: The Commissioner of the IRS should direct the appropriate IRS officials to revise the post orders for the service center campuses (SCC) and lockbox bank security guards to include specific procedures for timely reporting exterior lighting outages to SCC or lockbox bank facilities management. These procedures should specify (1) whom to contact to report lighting outages and (2) how to document and track lighting outages until resolved.

    Agency: Department of the Treasury: Internal Revenue Service
    Status: Open

    Comments: IRS's efforts to address this recommendation are ongoing. IRS stated that during fiscal year 2017, it would update campus post orders to help ensure timely reporting, monitoring and repair of exterior lighting outages. In addition, AWSS engaged in discussions with personnel from FPS and GSA to coordinate responsibilities and suggested changes for post orders when security services are contracted by those entities. We will continue to evaluate IRS's actions to address this recommendation during our fiscal year 2017 audit.
    Director: Clark, Cheryl E
    Phone: (202)512-9377

    2 open recommendations
    Recommendation: The Director of Personnel and Administration at Commission headquarters should follow established policies and procedures in taking action to conduct a review of contracts and purchase orders outstanding for completeness, accuracy, and proper dates.

    Agency: American Battle Monuments Commission: Human Resources and Administration Director
    Status: Open

    Comments: In response to this recommendation, the Commission stated that it completed such a review in fiscal year 2009 and made corrections as to how the Commission issues contracts and purchase orders. In addition, the Commission hired a consultant, a retired Federal Government Contracting Officer, to assist with contracting activities and to help draft and implement the Commission's policies and procedures. During our fiscal year 2010 audit, we found errors in relation to the Commission's contracts and found that Headquarter's Active Contracts List for contracts over $100,000 was not up to date. We found 3 out of 20 expenditures we tested that were obligated before there was a signed contract. During our fiscal year 2011 audit, we found that the Headquarter's Active Contracts List for contracts over $100,000 was not being kept up to date and reconciled to the undelivered orders account. During our fiscal year 2012 audit, we found there were no policies and procedures for processing engineering contracts. We were informed by the Commission that they were in the process of documenting policies and procedures for the entire contracting process. We also found there were no documented policies and procedures for reviewing year end open obligations and accounts payable to verify the accuracy and validity of year end balances. Additionally, there was no documented review of accounts payable or open obligations performed at year-end for all the open contracts. As a result, we found errors in year-end aged vendor liability reports and open purchase orders that no longer represented valid obligations and should have been deobligated. During our fiscal year 2017 follow-up, the Commission informed us that they plan to establish procurement-related policies and procedures to address our recommendation. We will follow up on this open recommendation at a later date.
    Recommendation: The Director of Personnel and Administration at Commission headquarters should follow established policies and procedures in taking action to coordinate procurement activity with finance personnel to ensure accurate and compliant obligation of funding of procurements, including proper application of multiyear contract terms.

    Agency: American Battle Monuments Commission: Human Resources and Administration Director
    Status: Open

    Comments: In response to this recommendation, the Commission stated that acquisition personnel would ensure coordination with finance personnel to be certain that accurate and compliant obligation of funding of procurements, including proper application of multi-year contract terms. During our fiscal year 2010 and 2011 audits, we found errors in relation to the Commission's contracts and determined improvements were still needed in the oversight of contracts. During our fiscal year 2012 audit, we found there were no policies and procedures for processing engineering contracts. We were informed by the Commission that they were in the process of documenting policies and procedures for the entire contracting process. We also found there were no documented policies and procedures for reviewing year end open obligations and accounts payable to verify the accuracy and validity of year end balances. Additionally, there was no documented review of accounts payable or open obligations performed at year-end for all the open contracts. As a result, we found errors in year-end aged vendor liability reports and open purchase orders that no longer represented valid obligations and should have been deobligated. During our fiscal year 2017 follow-up, the Commission informed us that they plan to establish procurement-related policies and procedures to address our recommendation. We will follow up on this open recommendation at a later date.
    Director: Clark, Cheryl E
    Phone: (202)512-9377

    1 open recommendations
    Recommendation: The Finance Officer at the Commission's European Regional (ER) office should instruct and monitor approving officials to ensure that expenditure transactions are dated when goods and services are received and approved before payments are processed.

    Agency: American Battle Monuments Commission: European Regional Office
    Status: Open

    Comments: During our fiscal years 2009, 2010, and 2011 financial statement audits, we continued to find expenditure transactions being processed prior to the goods or services being received and approved for payment. During our fiscal year 2012 audit, the Commission informed us that since the transition to a new financial management system in August 2011, all receiving is conducted in the iProcurement system (part of the Oracle accounting system) and must be complete before an invoice is processed for payment in Oracle. Although we found that invoices were approved before payment, we continued to find instances where the invoices were not dated and/or signed when goods or invoices were received. During fiscal year 2017, the Commission informed us that they developed a related policy to address our recommendation. However, the Commission has not provided documentation or an explanation of the controls used by management for monitoring (i.e. evaluating or reviewing) the effective implementation of the procedures established related to this recommendation. Therefore, we will continue to follow up on this open recommendation with the Commission at a later date.
    Director: Engel, Gary T
    Phone: (202)512-8815

    1 open recommendations
    including 1 priority recommendation
    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 effective processes and procedures to ensure that appropriate information regarding litigation and claims is included in the governmentwide legal representation letter.

    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 schedules to the legal representation letters to perform analytics on the items below the threshold to determine the materiality at the aggregate level. 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: Goldstein, Mark L
    Phone: (202)512-3000

    1 open recommendations
    Recommendation: Given the critical importance of telecommunications technologies to schools and libraries, the Chairman of the Federal Communications Commission should direct FCC staff to establish performance goals and measures for the E-rate program that are consistent with the Government Performance and Results Act. FCC should use the resulting performance data to develop analyses of the actual impact of E-rate funding and to determine areas for improved program operations.

    Agency: Federal Communications Commission
    Status: Open

    Comments: In an August 2007 order, FCC adopted two performance measures for the E-rate program, one for Internet connectivity and the other for application processing. The order did not include specific E-rate program goals, although FCC said in this order that it anticipated adopting performance goals as it and USAC gained experience with the performance measures. While FCC's efforts to develop performance measures have the potential to eventually produce better information than is currently available on E-rate program performance, these measures fall short when compared to the key characteristics of successful performance measures and FCC still has not established program goals. FCC says it is still working on developing goals and performance measures for the Universal Service programs.