Internal Controls:

Matters Regarding Certain Transactions Processed by FMS

AIMD-99-147R: Published: May 17, 1999. Publicly Released: May 17, 1999.

Additional Materials:


Gary T. Engel
(202) 512-8815


Office of Public Affairs
(202) 512-4800

Pursuant to a legislative requirement, GAO provided information on the effectiveness of the Financial Management Service's (FMS) internal controls, focusing on the processes for: (1) recording adjusting journal entries (adjustments) needed to accurately reflect FMS' records of agencies' cash receipts and disbursements; (2) opening, amending, or closing agency location codes (ALC) which identify agencies and individual reporting locations within agencies on monthly reports of cash receipts and disbursements; and (3) assigning or discontinuing account symbols, which are used to identify individual appropriations or spending authorizations.

GAO noted that: (1) GAO previously reported on and suggested internal control improvements over adjusting journal entries, ALC, and account symbol transactions; (2) FMS' corrective actions resolved all of GAO's concerns regarding account symbol transactions; (3) FMS has also acted to resolve all of GAO's concerns about the supervisory review and approval of adjustments and the Check Reconciliation Branch's internal controls over its ALC actions; (4) however, this year GAO's suggested improvements include matters it reported on last year for which FMS' corrective actions were incomplete; (5) specifically, GAO reaffirms its prior year suggestions for improvements to the: (a) Financial Analysis Branch's documentation and reconciliation of adjustments; and (b) Budget Reports Branch's supervisory review and approval, documentation, and reconciliation of its ALC actions; (6) although the internal control matters discussed in this letter are not material in relation to the federal government's fiscal year 1998 financial statements, GAO believes they warrant attention; (7) also, some federal agencies continue to have problems reconciling their fund balances with Treasury accounts; and (8) sound controls at FMS over the processes GAO tested will help improve all agencies' ability to reconcile these accounts.

Sep 10, 2020

Sep 8, 2020

Aug 31, 2020

Aug 27, 2020

Aug 19, 2020

Jul 9, 2020

Jul 1, 2020

Jun 25, 2020

Looking for more? Browse all our products here