Financial Management: Forest Service Is Not Consistently Implementing Charge-as-Worked Cost Reporting
AFMD-90-50
Published: Jun 12, 1990. Publicly Released: Jun 12, 1990.
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Highlights
Pursuant to a congressional request, GAO reviewed the Forest Service's actions to charge its accounts as worked rather than as budgeted in fiscal years (FY) 1988 and 1989.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Forest Service | To ensure that the Forest Service fully and consistently implements the charge-as-worked policy and accurately records and reports costs, the Chief, Forest Service, should issue detailed procedures to be followed by all units to ensure consistent treatment of costs incurred for work details, shared services, equipment use, and computer services. |
Closed – Implemented
On September 30, 1992, the Forest Service issued detailed procedures to be followed by all units to ensure consistent treatment of costs incurred for work details, shared services, equipment use, computer services, and other costs.
|
| Forest Service | To ensure that the Forest Service fully and consistently implements the charge-as-worked policy and accurately records and reports costs, the Chief, Forest Service, should clarify definitions for work activity codes by providing descriptive examples so that work performed for similar activities is consistently charged to the same budget activity accounts. |
Closed – Implemented
Improved definitions and other changes have been incorporated into the Forest Service handbook, section 1309.16, effective March 31, 1992. Field units received a database update in July 1992.
|
| Forest Service | To ensure that the Forest Service fully and consistently implements the charge-as-worked policy and accurately records and reports costs, the Chief, Forest Service, should ensure that reprogramming requirements and procedures do not interfere with charging as worked. |
Closed – Implemented
The Forest Service revised its reprogramming process for fiscal year 1991 on March 20, 1991, to provide one comprehensive adjustment annually as necessary to accomplish program targets established by Congress. This reprogramming process was based on financial results through April, 1991.
|
| Forest Service | To ensure that the Forest Service fully and consistently implements the charge-as-worked policy and accurately records and reports costs, the Chief, Forest Service, should ensure the timely allocation of budgets to all levels of the Forest Service. |
Closed – Implemented
Field units were notified by letter that all funds must be entered into operating plans within 30 days of automation, and that the initial advice (President's budget) for allocating budgets to lower-level field units must be used.
|
| Forest Service | To ensure that the Forest Service fully and consistently implements the charge-as-worked policy and accurately records and reports costs, the Chief, Forest Service, should consider eliminating the primary purpose principle. |
Closed – Not Implemented
The Forest Service completed an analysis of the effects of this principle on September 29, 1992, and decided to continue the policy.
|
| Forest Service | To ensure that the Forest Service fully and consistently implements the charge-as-worked policy and accurately records and reports costs, the Chief, Forest Service, should ensure that management controls are consistently used by all units to monitor compliance with the charge-as-worked policy. |
Closed – Implemented
The Forest Service requires that all management program reviews look at compliance with the charge-as-worked policy and, where corrective action is needed, develop an action plan. Manual update was issued in March 1992.
|
| Forest Service | To ensure that the Forest Service fully and consistently implements the charge-as-worked policy and accurately records and reports costs, the Chief, Forest Service, should ensure that the Chief's commitment to hold all line officers accountable for enforcing the charge-as-worked policy by including it as an element in performance contracts is enforced. |
Closed – Implemented
Forest Service Senior Executive Service staff now include requirements for charge-as-worked. Similar requirements have been added to the performance standards of all line officer personnel effective May 14, 1991.
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Topics
Budget activitiesBudget administrationBudgetingCost accountingFederal agency accounting systemsFinancial management systemsFunds managementNational forestsPolicy evaluationReporting requirements