Continuing and Widespread Weaknesses in Internal Controls Result in Losses Through Fraud, Waste, and Abuse
FGMSD-80-65: Published: Aug 28, 1980. Publicly Released: Aug 28, 1980.
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Most federal agencies are operating accounting systems that are vulnerable to physical losses and waste of federal money as well as fraudulent and otherwise improper uses. These conditions, noted in a series of GAO reports issued between December 1976 and October 1979 covering financial operations in 11 major federal organizations, are summarized.
System vulnerability results from a series of longstanding, undetected weaknesses. While agencies usually correct specified deficiencies, they are generally slow to correct systemwide deficiencies in collection, disbursement, obligation, and imprest fund activities. Inadequate controls over collection could not ensure that amounts owed the government were recorded as accounts receivable or that overdue accounts were identified and collected. Often, accounts receivable were so poorly controlled and safeguarded that the potential for theft, loss, or other misuse was high. Controls over disbursement activities were found to be deficient. Disregard for basic control procedures prescribed in manuals resulted in waste and overpayments. About half of the offices reviewed had serious weaknesses in controls over obligations that could result in improper or illegal payments. The most widespread deficiencies were noted in imprest fund activities. Weak controls together with the susceptibility of imprest funds to misuse allowed substantial losses to the government. It was concluded that adequate internal audit coverage could have detected most of the deficiencies found. Legislation under consideration would place greater responsibilities on the heads of federal agencies for improving their agencies' financial systems. Under this legislation, agencies would be required to undertake evaluations of their organizations' systems of internal control and report annually to Congress and to the President the results of such evaluations.
Nov 16, 2020
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Financial Audit:
Bureau of Consumer Financial Protection's FY 2020 and FY 2019 Financial StatementsGAO-21-174R: Published: Nov 16, 2020. Publicly Released: Nov 16, 2020. -
Financial Audit:
Federal Housing Finance Agency's FY 2020 and FY 2019 Financial StatementsGAO-21-201R: Published: Nov 16, 2020. Publicly Released: Nov 16, 2020. -
Financial Audit:
Securities and Exchange Commission's FY 2020 and FY 2019 Financial StatementsGAO-21-192R: Published: Nov 16, 2020. Publicly Released: Nov 16, 2020.
Nov 10, 2020
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Financial Audit:
IRS's FY 2020 and FY 2019 Financial StatementsGAO-21-162: Published: Nov 10, 2020. Publicly Released: Nov 10, 2020. -
Financial Audit:
Office of Financial Stability's (Troubled Asset Relief Program) FY 2020 and FY 2019 Financial StatementsGAO-21-173R: Published: Nov 10, 2020. Publicly Released: Nov 10, 2020.
Nov 9, 2020
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Financial Audit:
Bureau of the Fiscal Service's FY 2020 and FY 2019 Schedules of Federal DebtGAO-21-124: Published: Nov 9, 2020. Publicly Released: Nov 9, 2020.
Nov 6, 2020
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FY 2020 Excise Tax:
Agreed-Upon Procedures Related to Distributions to Trust FundsGAO-21-163R: Published: Nov 6, 2020. Publicly Released: Nov 6, 2020.
Oct 13, 2020
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DOD Financial Management:
Continued Efforts Needed to Correct Material Weaknesses Identified in Financial Statement AuditsGAO-21-157: Published: Oct 13, 2020. Publicly Released: Oct 13, 2020.
Sep 30, 2020
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Financial Management:
DOD Needs to Implement Comprehensive Plans to Improve Its Systems EnvironmentGAO-20-252: Published: Sep 30, 2020. Publicly Released: Sep 30, 2020.
Sep 9, 2020
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Defense Real Property:
DOD-Wide Strategy Needed to Address Control Issues and Improve Reliability of RecordsGAO-20-615: Published: Sep 9, 2020. Publicly Released: Sep 9, 2020.
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