Congressional Award Foundation:
Internal Controls Must Be Strengthened To Ensure Financial Success
AFMD-92-80: Published: Jun 23, 1992. Publicly Released: Jun 23, 1992.
- Full Report:
Pursuant to a congressional request, GAO reviewed issues related to the financial condition and management of the Congressional Award Foundation, focusing on the: (1) accuracy of the Foundation's 1991 financial statements; (2) effectiveness of the Foundation's financial management; and (3) Foundation's ability to operate in a financially sound manner.
GAO found that the: (1) Foundation's 1991 financial statements contained inaccuracies, including incorrect statements and inadequately disclosed financial transactions; (2) Foundation had inadequate internal controls over the receipt and handling of contribution funds, resulting in risk of misappropriated or lost funds; (3) Foundation did not adequately control fixed assets, increasing the risk of lost or stolen assets; (4) Foundation did not keep subsidiary records for disbursements or conduct sufficient analyses of invoices before paying bills, which it often paid late; (5) Foundation lacks adequate financial management staffing; and (6) Foundation had cash flow problems and paid bills late during 1991. GAO also found that the Foundation: (1) has taken actions to reduce its expenditures; and (2) is taking measures to enhance oversight and direction by the Congressional Award Board.