Disappointing Progress in Improving Systems for Resolving Billions in Audit Findings
AFMD-81-27
Published: Jan 23, 1981. Publicly Released: Feb 23, 1981.
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Highlights
The Federal Government is losing billions of dollars in unresolved audit findings. A study was made to see if agencies have implemented effective audit resolution systems that meet the Office of Management and Budget's (OMB) revised guidelines and GAO and House Committee on Government Operations recommendations.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Heads of Federal Agencies | The heads of Federal agencies should (1) further improve audit resolution policies, procedures, and practices to comply with the intent and spirit of Office of Management and Budget (OMB) guidelines, designating a top level manager to coordinate these efforts and prepare progress reports for OMB; (2) take legal or administrative actions against the parties involved whenever audit findings concern fraud, waste, or abuse of Federal funds; and (3) make the timeliness and quality of audit resolution a written performance standard and a factor in determining bonuses for Senior Executive Service members and merit pay for supervisors. |
Please call 202/512-6100 for additional information.
|
| All Inspectors General and Directors of Audit Organizations | The Inspectors General and directors of audit agencies should develop internal organizational procedures and controls for efficient and effective planning, coordinating, reviewing, and reporting of audit work and audit followup activities in accordance with GAO and other professional standards. |
Please call 202/512-6100 for additional information.
|
| Office of Management and Budget | The Director of the Office of Management and Budget should include oversight of agency audit resolution practices in the budget review process to provide (1) an assessment of progress in establishing, revising, and implementing resolution systems; (2) an adjustment of agency budget allowances where appropriate; and (3) a report to the chairpersons of the House and Senate Committees on Appropriations on progress and action plans. The Director should also clarify Circular A-73 so that (1) it provides that periodic reports to agency heads include complete details on the resolution of findings and on the age and amounts of unresolved findings; (2) it applies to all audit reports, including contract, subgrantee, and regulatory audits; and (3) written determinations and the legal basis for nonconcurrence with audit recommendations apply to both procedural and monetary findings. |
Please call 202/512-6100 for additional information.
|
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Topics
Audit oversightAudit reportsAuditing proceduresCollection proceduresFederal agency accounting systemsFederal records managementFund auditsInternal auditsAudit resolutionMilitary forces