Accounts Which Will Never Be Paid Are Included in District's Accounts Receivable
GGD-83-21
Published: Feb 16, 1983. Publicly Released: Feb 16, 1983.
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Highlights
GAO reviewed the District of Columbia accounts to determine the reasonableness of the District's accounts receivable, their collectibility, and whether the receivables are fairly stated.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| District of Columbia | The Mayor should direct department and agency heads to analyze accounts receivable and, as appropriate, reclassify as medical charities those for which there is no payability. |
Closed – Implemented
The Mayor's instructions to analyze accounts receivable were carried out according to a December 1983 report. The District will not categorize as medical charities those accounts for which there is no payability.
|
| District of Columbia | The Mayor should direct department and agency heads to determine collectibility of current charges before recording them as accounts receivable. |
Closed – Implemented
The Mayor issued a directive to District agencies requiring improved determinations of payability; St. Elizabeths' patients accounted for the major dollar value of the finding leading to this recommendation. St. Elizabeths was not included in the corrective action because of a change in responsibility. The question of who will be responsible is under discussion.
|
| District of Columbia | The Mayor should direct department and agency heads to record dishonored checks as accounts receivable. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
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Topics
Accounting proceduresAccounts payableAccounts receivableDebt collectionFinancial managementFinancial recordsMunicipal governmentsPatient careHealth care servicesVeterans hospitals