Financial Audit: Farmers Home Administration's Financial Statements for 1989 and 1988
AFMD-91-36
Published: May 06, 1991. Publicly Released: May 06, 1991.
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Highlights
GAO examined the Farmers Home Administration's (FmHA): (1) consolidated financial statements as of September 30, 1989 and 1988; (2) internal accounting control structure; (3) compliance with laws and regulations; and (4) operating results for the fiscal year (FY) then ended.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Agriculture | The Secretary of Agriculture should direct the Administrator, FmHA, to require accurate and timely reconciliation of the acquired property general ledger accounts with detailed acquired property files each fiscal year. |
Closed – Implemented
With the implementation of systems modifications in February 1991, adjustments were made to bring the general ledger into agreement with supporting detail records. Reconciliation of the Acquired Property Tracking System with the detailed property files maintained in county offices was completed and certified on October 22, 1991.
|
| Department of Agriculture | The Secretary of Agriculture should direct the Administrator, FmHA, to implement internal controls to detect and correct data entry errors in the farm loan classification system. |
Closed – Implemented
All FmHA field offices have now implemented the automated farm and home plan (ORACLE), which gathers the data needed to classify the borrower from the borrower's computerized financial statements, thus eliminating prior keypunch and other data entry errors.
|
| Department of Agriculture | The Secretary of Agriculture should direct the Administrator, FmHA, to reconcile estimated loss information from the loan classification system to the hard-copy files at the field offices to ensure that all previous data entry errors are corrected. |
Closed – Implemented
Reports are sent to FmHA field offices twice a year to verify classification information for farm programs and annually for single family housing programs. Accuracy of these reports was evaluated during assessment reviews in late 1991.
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Topics
Agricultural programsAuditing standardsDelinquent loansFederal agency accounting systemsFinancial recordsFinancial statement auditsInformation systemsInternal controlsLoan accounting systemsLoan interest ratesNoncompliance