Financial Audit: Forest Service's Financial Statements for Fiscal Year 1988
AFMD-91-18
Published: Mar 18, 1991. Publicly Released: Mar 18, 1991.
Skip to Highlights
Highlights
GAO examined the Forest Service's financial statements for the fiscal year ended September 30, 1988.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Agriculture | The Secretary of Agriculture should direct the Chief, Forest Service, to integrate all financial accounting and reporting systems with the Forest Service's general ledger so that all accounts are part of the general ledger system. This should include the capability of automatically updating all integrated systems when a transaction is processed. |
Closed – Implemented
The Forest Service is developing an administrative integrated management system (AIMS) to provide a fully integrated financial system. Automated tracking of the work process is complete, fund allocation is in process, and complete system implementation is targeted for September 1996. An interim step is under way to procure software to link the general ledger to supporting systems by late 1994. The CFO Act of 1990 requires annual audits of the Department of Agriculture. This, or a similar recommendation, will be repeated each year until corrective action is implemented.
|
| Department of Agriculture | The Secretary of Agriculture should direct the Chief, Forest Service, to reconcile data in the general ledger with all subsidiary systems. |
Closed – Implemented
The new system under development will place all subsidiary systems into a single, integrated relational database system, which will update the general ledger automatically, thus eliminating the need for reconciliation by September 1996. A FTE position to ensure current reconciliations was obtained in December 1992. The CFO Act of 1990 requires annual audits of the Department of Agriculture. This, or a similar recommendation, will be repeated each year until corrective action is implemented.
|
| Department of Agriculture | The Secretary of Agriculture should direct the Chief, Forest Service, to ensure that field unit staff: (1) promptly update the fixed asset subsidiary ledger system; (2) review and reconcile field unit ledgers with central accounting records; and (3) periodically inventory equipment. |
Closed – Implemented
The CFO Act of 1990 requires annual financial audits of the Department of Agriculture. This, or a similar recommendation, will continue to be made each year until corrective actions are taken.
|
| Department of Agriculture | The Secretary of Agriculture should direct the Chief, Forest Service, to improve accounting controls in the general ledger and subsidiary systems by: (1) clarifying and correcting written procedures for classifying payables and receivables; (2) supervising field staff to ensure that their work is accurate and timely, and that agency policies and procedures are followed; and (3) reviewing external and internal reports to ensure accuracy, consistency, and compliance with federal financial reporting requirements. |
Closed – Implemented
Information for classification of payables and receivables currently exist in the Forest Service handbook and compliance was emphasized in June and August 1991 letters to field units. Management reviews have stressed report accuracy and staff supervision and held managers accountable.
|
| Department of Agriculture | The Secretary of Agriculture should direct the Chief, Forest Service, to modify TSPIRS to incorporate procedures to: (1) better match costs and volume of timber harvested; (2) improve the capitalization and depreciation of the cost of roads and related structures; and (3) periodically review growth pool balances and the amortization formula to determine how realistically they account for conditions in the forests. |
Closed – Implemented
All TSPIRS modifications have been made to match costs with timber harvested, capitalize and depreciate roads, and better estimate harvestable timber inventory. Procedures to ensure cost pool balances are adjusted due to catastrophic losses were issued September 21, 1992.
|
Full Report
Office of Public Affairs
Topics
Accounting proceduresCivil auditsFederal agency accounting systemsFinancial managementFinancial recordsFinancial statement auditsForest managementFunds managementInternal controlsNoncomplianceTimber salesJob corps