Authorization To Net Small Cash Overages Against Shortages on Accumulated Quarterly Basis

GAO was asked whether cashiers throughout the Government, operating under delegation from the Department of the Treasury's Bureau of Government Financial Operations, may net small cash overages against shortages in their accounts on an accumulated quarterly basis. Under current procedures, overages and shortages are accounted for separately. Cashiers must restore shortages from their own funds unless relief is granted by the proper authority. Overages must be deposited into the Treasury as miscellaneous receipts. The Treasury contended that the proposed quarterly netting procedure would promote economy and efficiency. It believed that many cashier man-hours could be saved which are consumed in attempting to determine the cause of relatively small cash shortages or overages. In addition, the Treasury believed that, except when large sums of money are involved, the cost to the Government in investigating discrepancies far outweighs any monetary benefit. The Treasury proposal would abolish procedures whereby any shortages and overages are accounted for separately and resolved as soon as they are discovered, presumably daily. GAO concluded that implementation of the proposal to net overages and shortages on a quarterly basis would be undesirable because it would weaken internal controls over the accounting for cash balances.