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GAO examined the Food and Nutrition Service's (FNS): (1) financial statements for the fiscal years ended September 30, 1988 and 1987; (2) internal control system; and (3) compliance with laws and regulations.
Recommendations for Executive Action
|Department of Agriculture||1. The Secretary of Agriculture should direct the Administrator, FNS, to: (1) enforce FNS oversight of state controls over food coupons, including inventory audit procedures, recordkeeping, and reporting to FNS; and (2) develop the policies and procedures necessary to ensure the consistent monitoring of state agency controls.|
|Department of Agriculture||2. The Secretary of Agriculture should direct the Administrator, FNS, to ensure that FNS staff are skilled in applying generally accepted accounting principles and in preparing financial reports to Treasury and the Office of Management and Budget (OMB). A needs determination should be conducted to ascertain how many staff with accounting skills are needed, and a sufficient number should be engaged and properly trained to ensure the reliable accounting and financial reporting of FNS transactions.|
|Department of Agriculture||3. The Secretary of Agriculture should direct the Administrator, FNS, to ensure that financial statements and reports are prepared using required accounting policies, procedures, and methodologies.|
|Food and Nutrition Service||4. FNS should follow the guidelines OMB established for its Federal Managers' Financial Integrity Act reporting in its July 5, 1990, memorandum, including OMB Circulars A-123 and A-127, and carefully consider the significance of nonconformance when arriving at an overall statement of compliance.|