Financial Audit: EPA's Financial Statements for Fiscal Years 1988 and 1987
AFMD-90-20
Published: Mar 16, 1990. Publicly Released: Mar 16, 1990.
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Highlights
Pursuant to a legislative requirement, GAO examined the Environmental Protection Agency's (EPA) consolidated financial statements for the years ended September 30, 1988 and 1987, focusing on: (1) EPA internal accounting controls; (2) EPA compliance with laws and regulations; and (3) the Superfund program's financial condition.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Environmental Protection Agency | To improve EPA accounting for and control over all property assets, the Administrator, EPA, should ensure that the new accounting system and the property control system provide accurate and reliable financial and management control records (including the type of asset, date of acquisition, cost, estimated useful life, applicable depreciation data, physical location, and identity of custodial officers) to account for and control property assets. |
Closed – Implemented
EPA stated that it has refined procedures to control and account for property assets; completed a wall-to-wall physical inventory; and initiated a full reconciliation of property and accounting records.
|
| Environmental Protection Agency | To improve EPA accounting for and control over all property assets, the Administrator, EPA, should ensure that the new accounting system and the property control system contain a common data element or interface to permit the reconciliation of accounting and property systems data. |
Closed – Implemented
In fiscal year 1994, on the basis of recommendations from an internal quality action team, EPA decided to replace its existing Personal Property Accountability System with a new Fixed Asset Module, which would be implemented with its new accounting system. EPA completed the implementation of the Fixed Asset Module in fiscal year 1997.
|
| Environmental Protection Agency | To improve EPA accounting for and control over all property assets, the Administrator, EPA, should address the property-related findings and implement the recommendations reported by the Superfund auditor in its fiscal year 1988 audit report dated September 22, 1989. |
Closed – Implemented
EPA agreed with the recommendation and has developed new procedures and established policy to reconcile property records with accounting records. Property officers have certified that property records are correct.
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Topics
Auditing standardsCivil auditsFederal agency accounting systemsFederal property managementFinancial management systemsFinancial recordsFinancial statement auditsFunds managementFuture budget projectionsInternal controlsRegulatory agenciesTrust funds