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Highlights

GAO was asked to review the financial operations of the Equal Employment Opportunity Commission (EEOC) with emphasis on determining the extent of deficiencies in EEOC controls over appropriated funds. GAO was requested to issue an interim report in October 1981 on the results of the review at that time.

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Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Equal Employment Opportunity Commission 1. The Chairman, EEOC, should direct EEOC employees to follow established procedures such as recording transactions promptly and complying with reconciling procedures to identify inaccuracies in recorded data.
Closed - Implemented
EEOC implemented a 3-day turnaround requirement for budget allowance holders to review and reconcile their monthly accounting reports.
Equal Employment Opportunity Commission 2. The Chairman, EEOC, should direct the EEOC Office of Audit to periodically review financial activities with emphasis on determining whether promised corrective actions are completed and whether procedures for recording data and reconciling records are being followed.
Closed - Implemented
The Office of Audit now develops an annual work plan which is approved by the chairman. The plan provides for periodic reviews of financial procedures and program operations throughout the year.
Equal Employment Opportunity Commission 3. The Chairman, EEOC, should submit revised fiscal 1981 year-end reports to the Department of the Treasury and the Office and Management and Budget after corrective actions promised by the Acting Chairman and recommended in this report are implemented.
Closed - Implemented
EEOC corrected the figures reported to Treasury in its FY 1982 year-end report.
Equal Employment Opportunity Commission 4. The Chairman, EEOC, should designate an individual as claims collection officer and establish written collection procedures.
Closed - Implemented
Two employees were designated to serve full time as claims collection officers. Procedures covering debt collection and collection of overpayments due to erroneous pay were developed and implemented.
Equal Employment Opportunity Commission 5. The Chairman, EEOC, should collect all existing and future receivables in accordance with the Federal Claims Collection Act and adjust records to accurately report all valid receivables.
Closed - Implemented
EEOC provided documentation on the actions taken thus far on all recommendations. However, due to staff constraints, GAO was unable to visit EEOC and verify that all of the changes were actually implemented.
Equal Employment Opportunity Commission 6. The Chairman, EEOC, should establish clear responsibility and procedures to control travel advances and, when appropriate, use payroll deductions to collect outstanding advances.
Closed - Implemented
New procedures covering issuance of travel advances were developed. EEOC employees are required to submit a travel voucher to cover their last advance before being issued a subsequent advance. Advances that remain overdue after 30 days are sent demand letters prior to instituting payroll deduction action.
Equal Employment Opportunity Commission 7. The Chairman, EEOC, should establish clearance procedures that prevent employees from leaving EEOC with unsettled advances and take appropriate action to recover funds owed by former EEOC employees or others.
Closed - Implemented
New procedures covering clearances of employees were developed. A separate debt review is required to take place prior to issuance of the employee's final salary check or release of lump-sum annual leave funds. Collection efforts were taken to recover funds from all former employees owing EEOC funds.
Equal Employment Opportunity Commission 8. The Chairman, EEOC, should determine reasons for differences in travel advance balances as reported in the centralized accounting system and in individual travel records and bring the two records into agreement.
Closed - Implemented
All 4,424 travel folders maintained on EEOC employees and 1,224 state/local agency employee folders were reconciled. Subsidiary travel folders are now reconciled on a rotating basis each month by professional accountants assigned to the finance branch.
Equal Employment Opportunity Commission 9. The Chairman, EEOC, should determine the validity of questionable contract charges reported by the EEOC Office of Audit, and when appropriate, establish the amounts as receivables and initiate aggressive collection action.
Closed - Implemented
A task force composed of the EEOC contracting officer and attorneys from three headquarter offices was established to review all contracts where reimbursement to the government might be necessary. A total of $1.6 million in deobligations were prepared on 130 contracts. Accounts receivable was set up for 22 contracts.
Equal Employment Opportunity Commission 10. The Chairman, EEOC, should direct prompt completion of the corrective actions in process, which are assignments of duties so that no individual controls all phases of an activity or transaction.
Closed - Implemented
EEOC redesigned the structure of its finance branch to maximize processing efficiency while avoiding overlapping responsibilities which might create an internal control problem.
Equal Employment Opportunity Commission 11. The Chairman, EEOC, should direct prompt completion of the corrective actions in process, which are the proper training of all personnel responsible for performing financial management functions, such as the input of obligations and reconciliation of obligation balances.
Closed - Implemented
Formal week-long training was held for district offices and a 2-day program was held for headquarters administrative staff on all aspects of financial management. A desk reference manual was prepared for use by the administrative staff.
Equal Employment Opportunity Commission 12. The Chairman, EEOC, should direct prompt completion of the corrective actions in process, which are uses of the increased Office of Audit staff to perform periodic reviews of the agency's financial operations as necessary to provide assurance that accounting functions are properly conducted.
Closed - Implemented
The Office of Audit now develops an annual work plan which is approved by the chairman. The plan provides for periodic reviews of financial procedures and program operations throughout the year.
Equal Employment Opportunity Commission 13. The Chairman, EEOC, should direct prompt completion of the corrective actions in process, which are issuances of formal preaudit voucher and imprest fund operation procedures.
Closed - Implemented
EEOC issued voucher examination and imprest fund management procedures.
Equal Employment Opportunity Commission 14. The Chairman, EEOC, should direct prompt completion of the corrective actions in process, which are reductions of all imprest funds to authorized limits based on demonstrated need.
Closed - Implemented
Imprest funds in every district office were reduced below the level existing in May 1982.
Equal Employment Opportunity Commission 15. The Chairman, EEOC, should recover funds owed EEOC from the loan fund venture and, in the future, prohibit any similar program unless the agency obtains specific congressional authority.
Closed - Implemented
The EEOC claims collection officer continually monitors the status of these cases. GAO is closing this recommendation as EEOC has these receivables under adequate controls and pursued aggressive collection efforts during the last 4 years.
Equal Employment Opportunity Commission 16. The Chairman, EEOC, should review contracts awarded and costs incurred near the end of the past three FY's to establish the amount of costs improperly charged against FY appropriations and adjust records as necessary.
Closed - Implemented
All of the contracts awarded at the end of FY 1980, 1981, and 1982 were reviewed and charged against the appropriate FY.
Equal Employment Opportunity Commission 17. The Chairman, EEOC, should require a comprehensive review of the validity of all unliquidated obligations now being carried on the agency's records.
Closed - Implemented
All unliquidated obligations existing at the time of the review were validated. A formal process was established to validate, on an ongoing basis, all obligations which remain open in a subsequent FY.
Equal Employment Opportunity Commission 18. The Chairman, EEOC, should complete the investigation surrounding the year-end certifications for FY's 1980 and 1981 and, if conditions warrant, refer the case to the Department of Justice.
Closed - Implemented
EEOC fully cooperated with Justice regarding the inquiry into the improper Treasury report certifications made in FY 1980 and 1981.
Equal Employment Opportunity Commission 19. The Chairman, EEOC, should better monitor contracts with state and local enforcement agencies to prevent problems similar to those occurring in FY 1980.
Closed - Implemented
EEOC designated a procurement executive to oversee the operation of the EEOC procurement system, revise and strengthen procurement procedures and develop a contract monitoring directive.

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