Recommendations for Executive Action

1. Status: Closed - Implemented

   Comments: Month-end accrual of advance payments.

   Recommendation: In order to ensure proper accounting, the Administrator, FNS, should direct the headquarters' Accounting Division to record letters of credit as advances and to reduce the advances substantially by the amount of program expense shown in the periodic reports submitted by grantees.

   Agency Affected: Department of Agriculture: Office of the Secretary: Food, Nutrition and Consumer Services: Food and Nutrition Service

2. Status: Closed - Implemented

   Comments: A regulation change requires approval.

   Recommendation: In order to ensure the reliability and security of FNS financial information, the Administrator, FNS, should direct that proposed system changes be submitted for formal management approval prior to implementation. Criteria for determining when formal review and approval are necessary should include the nature of the proposed change and not solely the dollar amount or staff years of effort involved.

   Agency Affected: Department of Agriculture: Office of the Secretary: Food, Nutrition and Consumer Services: Food and Nutrition Service

3. Status: Closed - Implemented

   Comments: Agency procedures were changed to require separation of duties.

   Recommendation: In order to ensure the reliability and security of FNS financial information, the Administrator, FNS, should direct that appropriate separation of duties be maintained to reduce the risk of error or fraud and to ensure effective checks and balances.

   Agency Affected: Department of Agriculture: Office of the Secretary: Food, Nutrition and Consumer Services: Food and Nutrition Service

4. Status: Closed - Implemented

   Comments: FNS now requires full documentation of system changes.

   Recommendation: In order to ensure the reliability and security of FNS financial information, the Administrator, FNS, should direct that written documentation be updated to include all changes made to the system.

   Agency Affected: Department of Agriculture: Office of the Secretary: Food, Nutrition and Consumer Services: Food and Nutrition Service

5. Status: Closed - Implemented

   Comments: FNS directed OIRM to identify problems.

   Recommendation: The Administrator, FNS, should request that the Director, Office of Information Resources Management (OIRM), identify the difficulties encountered by FNS during its attempt to operate its backup plan and work with FNS to establish an operating contingency plan.

   Agency Affected: Department of Agriculture: Office of the Secretary: Food, Nutrition and Consumer Services: Food and Nutrition Service

6. Status: Closed - Implemented

   Comments: The Office of Financial Management will monitor implementation of the plan.

   Recommendation: The Secretary of Agriculture should direct the Administrator, FNS, to submit a comprehensive plan for implementing the recommendations made in this report. This plan should be approved and its implementation monitored by the Secretary.

   Agency Affected: Department of Agriculture

7. Status: Closed - Implemented

   Comments: The Administrator, FNS, will ensure that this is done.

   Recommendation: The Secretary of Agriculture should direct the Administrator, FNS, to improve FNS evaluations of its internal controls and accounting systems by performing them in sufficient depth to disclose all material weaknesses. Such weaknesses and planned corrective actions should be disclosed in the Service's annual FMFIA report.

   Agency Affected: Department of Agriculture

8. Status: Closed - Implemented

   Comments: Operating procedures were changed.

   Recommendation: In order to ensure that a disciplined internal control system is maintained, the Administrator, FNS, should require that all accounting transactions be properly and fully documented.

   Agency Affected: Department of Agriculture: Office of the Secretary: Food, Nutrition and Consumer Services: Food and Nutrition Service

9. Status: Closed - Implemented

   Comments: Operating procedures were changed.

   Recommendation: In order to ensure that a disciplined internal control system is maintained, the Administrator, FNS, should require that transactions be processed in a timely manner.

   Agency Affected: Department of Agriculture: Office of the Secretary: Food, Nutrition and Consumer Services: Food and Nutrition Service

10. Status: Closed - Implemented

    Comments: All other changes will result in this.

    Recommendation: In order to ensure that a disciplined internal control system is maintained, the Administrator, FNS, should require that accurate and fully supported financial reports be prepared and distributed.

    Agency Affected: Department of Agriculture: Office of the Secretary: Food, Nutrition and Consumer Services: Food and Nutrition Service

11. Status: Closed - Implemented

    Comments: The Administrator has stated his belief that this should occur.

    Recommendation: In order to ensure that a disciplined internal control system is maintained, the Administrator, FNS, should require that audit findings and recommendations be promptly resolved.

    Agency Affected: Department of Agriculture: Office of the Secretary: Food, Nutrition and Consumer Services: Food and Nutrition Service

12. Status: Closed - Implemented

    Comments: LOC drawdowns are to be recorded as advances.

    Recommendation: In order to ensure proper accounting, the Administrator, FNS, should direct the headquarters' Accounting Division to record advances receivable in its accounting system.

    Agency Affected: Department of Agriculture: Office of the Secretary: Food, Nutrition and Consumer Services: Food and Nutrition Service

13. Status: Closed - Implemented

    Comments: This is now required.

    Recommendation: In order to ensure that a disciplined internal control system is maintained, the Administrator, FNS, should require that employees and their work be properly supervised.

    Agency Affected: Department of Agriculture: Office of the Secretary: Food, Nutrition and Consumer Services: Food and Nutrition Service

14. Status: Closed - Implemented

    Comments: An allowance was established.

    Recommendation: In order to ensure proper accounting, the Administrator, FNS, should direct headquarters' Accounting Division to revise accounting procedures to require that an allowance for uncollectible amounts be recorded in the accounting system and that losses for bad debts be recorded as expenses against the allowance.

    Agency Affected: Department of Agriculture: Office of the Secretary: Food, Nutrition and Consumer Services: Food and Nutrition Service

Explore the full database of GAO's Open Recommendations »