U.S. Government Printing Office: Materials Management Service's Charges for Handling Paper and Materials
GGD-88-108
Published: Aug 08, 1988. Publicly Released: Aug 08, 1988.
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Highlights
In response to a congressional request, GAO examined the operations of the Government Printing Office's (GPO) Materials Management Service (MMS), to determine: (1) the propriety of the Service's handling charges from the standpoint of generally accepted accounting principles; (2) whether the charges were equitable to the level of service provided; (3) whether the cost centers were adequate to properly determine and allocate costs; and (4) ways to reduce operating expenses.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Government Publishing Office | The Public Printer, GPO, should direct the Office of the Comptroller to review all allocation bases used to distribute costs to MMS cost centers. During this review, the basis for allocating costs in the engineering services and the buildings expense accounts should receive special attention. |
The basis of cost allocations has been reviewed. Adjustments have been made to engineering services and buildings expense accounts (square footage charges and allocations).
|
| Government Publishing Office | The Public Printer, GPO, should direct the Office of the Comptroller to evaluate the validity of the present handling charges for issues from inventory and direct shipments of paper and materials from vendors, make any necessary adjustments, and make such evaluations on a periodic basis. |
Handling charges were reviewed and the 6 percent handling charge was reduced to 5 percent.
|
| Government Publishing Office | The Public Printer, GPO, should direct the Office of the Comptroller to develop handling charges applicable to recovery of costs of MMS services provided to users of procurement services not now subject to a handling charge. |
Handling charges are now being applied consistently to all users of MMS services.
|
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Topics
Accounting proceduresAllocation (Government accounting)Federal procurementMaterials handlingPrinting costsProperty and supply managementProcurementQuality controlEngineeringAccounting standards