Integrity Act:

Treasury's Annual Reporting Needs Improvement

GGD-87-16: Published: Nov 26, 1986. Publicly Released: Nov 26, 1986.

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GAO reported on the Department of the Treasury's report on its internal controls under the Federal Managers' Financial Integrity Act of 1982 (FMFIA).

GAO believes that Treasury's report inaccurately portrayed the adequacy of its controls, because: (1) its fiscal year (FY) 1985 report stated that, except for material weaknesses in tax processing and automated operations, its internal control systems, as a whole, provided reasonable assurance that internal control objectives were achieved; and (2) the report's lack of specificity and completeness obscured the seriousness of existing weaknesses. GAO disagreed with Treasury's overall reasonable assurance conclusion because of internal control weaknesses in the Internal Revenue Service and the Financial Management Service, and in two departmentwide functions, automatic data processing and personal property management.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: Treasury's FY 1986 FMFIA report was detailed and specific. All bureau report weaknesses were included in Treasury's report.

    Recommendation: When preparing Treasury's next FMFIA report, the Secretary of the Treasury should give greater consideration to the serious internal control issues in bureau reports, including bureau conclusions that their internal control systems do not provide reasonable assurance that FMFIA objectives are met.

    Agency Affected: Department of the Treasury

  2. Status: Closed - Implemented

    Comments: Treasury's FY 1986 FMFIA report included all outstanding weaknesses.

    Recommendation: When preparing Treasury's next FMFIA report, the Secretary of the Treasury should report all previously identified material weaknesses in the annual FMFIA report as material until they are substantially corrected.

    Agency Affected: Department of the Treasury

  3. Status: Closed - Implemented

    Comments: Although there were some exceptions, Treasury's FY 1986 FMFIA report complied with this recommendation.

    Recommendation: When preparing Treasury's next FMFIA report, the Secretary of the Treasury should more specifically describe material weaknesses and the plans and schedules for correcting them.

    Agency Affected: Department of the Treasury

 

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