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Highlights

In April 2000, the National Aeronautics and Space Administration (NASA) began its Integrated Financial Management program (IFMP), its third attempt at modernizing its financial management processes and systems. In April 2003, GAO reported that NASA's acquisition strategy has increased the risk that the agency will implement a system that will cost more and do less than planned. This report is one of a series of reviews of NASA's acquisition and implementation of IFMP, and focuses on the core financial module's ability to provide the information necessary for external financial reporting.

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Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
National Aeronautics and Space Administration 1. The NASA Administrator should direct the Program Executive Officer for IFMP to implement a corrective action plan in coordination with NASA's Chief Financial Officer that will produce financial management systems that comply substantially with the requirements of FFMIA, including capabilities to produce timely, reliable, and useful financial information related to property, plant, equipment, and materials. This plan should include time frames and details on how any changes will be monitored, tested, and documented.
Closed - Implemented
NASA's independent auditors found NASA to be compliant with FFMIA for the first time for fiscal year 2010, and they found it to be compliant for the two audits since then as well. Therefore, the intent of our recommendation has been implemented.
National Aeronautics and Space Administration 2. The NASA Administrator should direct the Program Executive Officer for IFMP to implement a corrective action plan in coordination with NASA's Chief Financial Officer that will produce financial management systems that comply substantially with the requirements of FFMIA, including capabilities to produce timely, reliable, and useful financial information related to budgetary information including adjustments to prior year obligations. This plan should include time frames and details on how any changes will be monitored, tested, and documented.
Closed - Implemented
The plan NASA prepared in fiscal year 2006 and actions taken by NASA since 2006 to address problems associated with upward and downward adjustments of prior year obligations are consistent with the intent of our recommendation. If fully and effectively implemented, the Core Financial System software upgrade NASA began in November 2006 combined with its continued efforts to refine the functionality of its financial systems should help produce systems that comply substantially with the requirements of FFMIA.
National Aeronautics and Space Administration 3. The NASA Administrator should direct the Program Executive Officer for IFMP to implement a corrective action plan in coordination with NASA's Chief Financial Officer that will produce financial management systems that comply substantially with the requirements of FFMIA, including capabilities to produce timely, reliable, and useful financial information related to accounts payable and accrued costs. This plan should include time frames and details on how any changes will be monitored, tested, and documented.
Closed - Implemented
The plan NASA prepared in fiscal year 2006 and actions taken by NASA since 2006 to address problems associated with accounts payable and accrued costs, are consistent with the intent of our recommendation. If fully and effectively implemented, the Core Financial System software upgrade NASA began in November 2006 combined with its continued efforts to refine the functionality of its financial systems should help produce systems that comply substantially with the requirements of FFMIA.
National Aeronautics and Space Administration 4. The NASA Administrator should direct the Program Executive Officer for IFMP to implement a corrective action plan in coordination with NASA's Chief Financial Officer that will produce financial management systems that comply substantially with the requirements of FFMIA, including capabilities to produce timely, reliable, and useful financial information related to the full cost of programs for financial reporting purposes. This plan should include time frames and details on how any changes will be monitored, tested, and documented.
Closed - Implemented
NASA's fiscal year 2006 plan to produce financial management systems that comply substantially with the requirements of FFMIA included planned actions related to developing cost data for financial reporting. If fully and effectively implemented to provide full program cost data not only for external financial reporting, but also to meet SSFAS No. 4 related to managerial cost accounting, should help NASA to produce systems that comply substantially with the requirements of FFMIA in this area.

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