Army's Progress in Implementing the Federal Managers' Financial Integrity Act
NSIAD-85-149
Published: Sep 27, 1985. Publicly Released: Sep 27, 1985.
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Highlights
GAO reviewed the Army's compliance with the Federal Managers' Financial Integrity Act (FMFIA) to: (1) determine whether actions taken by the Army as a result of FMFIA are improving its internal controls and accounting systems; (2) evaluate the Army's progress in implementing its internal controls and accounting systems; and (3) assess the adequacy of the Army's basis for determining that the requirements of FMFIA have been met.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of the Army | The Secretary of the Army should not report that the Army's systems of internal accounting and administrative control meet the requirements of FMFIA until the evaluation program has developed to a point where a coordinated Army-wide analysis of all functions is performed. |
The Army's fiscal year (FY) 1986 annual FMFIA report is much more explict as to how the Secretary reached this judgment that his systems provide reasonable assurance. In addition, GAO has not reviewed the Army's FMFIA program in 3 years. Without specific findings, this particular recommendation should be dropped.
|
| Department of the Army | Until the Army's accounting systems have been tested in operation, the Secretary of the Army should not report them as: (1) being in conformance with the Comptroller General's requirements; and (2) providing adequate financial control and reporting features to support the Army's fiscal accounting responsibilities. |
During 1984 and 1985, the Army developed and implemented a comprehensive methodology for evaluating and reporting on operating accounting systems. The Army believes that it accurately presented the status of its accounting systems.
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| Department of the Army | The Secretary of the Army should direct that a comprehensive tracking and follow-up system be established and used to ensure correction of accounting systems deficiencies before the systems are reported in conformance. |
The Army's automated system specifications were developed based on perceived Army needs. Although the system differs slightly from GAO recommendations, it will provide all of the GAO information requirements.
|
| Department of the Army | The Secretary of the Army should direct that the civil works accounting system not be reported as in conformance until known system problems are corrected and the related civilian pay system is brought into conformance. |
The Army agreed to consider known system problems when determining conformance.
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Topics
Accounting systemsInternal controlsMaterialityProgram evaluationReporting requirementsMilitary forcesMaterial weaknessesFederal agency accounting systemsPayroll recordsAudit reports