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    Subject Term: "Accounting procedures"

    13 publications with a total of 41 open recommendations including 11 priority recommendations
    Director: Malenich, J Lawrence
    Phone: (202) 512-3406

    9 open recommendations
    Recommendation: The Director of the Federal Housing Finance Agency should direct the Chief Financial Officer to develop a mechanism that captures all of the key factors to be considered, such as materiality and risk, when designing the evaluation of internal control over financial reporting and collaborate, as appropriate, with the Inspector General to develop a similar mechanism for use by FHFA-OIG.

    Agency: Federal Housing Finance Agency
    Status: Open

    Comments: FHFA agreed with this recommendation. FHFA is in the process of developing a mechanism that captures key factors, including risk and materiality, when designing the evaluation of internal control over financial reporting. This mechanism will be documented for the FY 2017 evaluation of internal control over financial reporting. FHFA and FHFA OIG are collaborating in these efforts.
    Recommendation: The Director of the Federal Housing Finance Agency should direct the Chief Financial Officer to coordinate with the Inspector General, as appropriate, when calculating materiality thresholds to reasonably assure that materiality determinations are appropriate for the agency as a whole and rationale is adequately documented.

    Agency: Federal Housing Finance Agency
    Status: Open

    Comments: FHFA agreed with this recommendation. During the FY 2017 evaluation of internal control over financial reporting, FHFA will coordinate with the FHFA OIG when calculating materiality thresholds to reasonably assure that materiality determinations are appropriate for the Agency as a whole and the rationale is adequately documented.
    Recommendation: The Director of the Federal Housing Finance Agency should direct the Chief Financial Officer to coordinate with the Inspector General, as appropriate, to assess and document the aggregate effect of all deficiencies identified at the agency-wide level during the evaluation of internal control over financial reporting.

    Agency: Federal Housing Finance Agency
    Status: Open

    Comments: FHFA agreed with this recommendation. FHFA will coordinate with the FHFA OIG during the FY 2017 evaluation of internal control over financial reporting to assess and document the aggregate effect of all deficiencies identified at the Agency-wide level.
    Recommendation: The Director of the Federal Housing Finance Agency should direct the Chief Financial Officer to (1) summarize in sufficient detail by internal control principle those activities from the program offices that have an effect on internal control over financial reporting to reasonably assure the consideration of all internal control components and related principles; (2) collaborate, as appropriate, with the Inspector General to implement corresponding actions at FHFA-OIG; and (3) document how that information is used to conclude on the internal control components and related principles for financial reporting.

    Agency: Federal Housing Finance Agency
    Status: Open

    Comments: FHFA agreed with this recommendation. During the FY 2017 evaluation of internal control over financial reporting, FHFA will summarize by internal control principle those activities from the program offices that have an effect on internal control over financial reporting to reasonably assure the consideration of all internal control components and related principles. FHFA will also document how information is used to conclude on the internal control components and related principles for financial reporting activities that are evaluated. FHFA will collaborate with FHFA OIG in these efforts.
    Recommendation: The Director of the Federal Housing Finance Agency should direct the Chief Financial Officer to enhance the evaluation of internal control over financial reporting by identifying and testing all key control activities, including those related to the preparation of the financial statements.

    Agency: Federal Housing Finance Agency
    Status: Open

    Comments: FHFA agreed with this recommendation. FHFA will enhance the FY 2017 evaluation of internal control over financial reporting by identifying and testing all key control activities, including those related to the preparation of the financial statements.
    Recommendation: The Director of the Federal Housing Finance Agency should direct the Chief Financial Officer to (1) thoroughly document FHFA's review of SSAE No. 16 reports issued for the period under evaluation by reasonably assuring that all applicable control objectives and related control activities are clearly identified and described and the evaluation of user entity controls is adequately explained and (2) collaborate, as appropriate, with the Inspector General to implement corresponding actions at FHFA-OIG.

    Agency: Federal Housing Finance Agency
    Status: Open

    Comments: FHFA agreed with this recommendation. During the FY 2017 evaluation of internal control over financial reporting, FHFA will thoroughly document FHFA's review of SSAE No. 16 reports issued for the period under evaluation by reasonably assuring that all applicable control objectives and related control activities are clearly identified and described and the evaluation of user entity controls is adequately explained. FHFA will collaborate with the FHFA OIG during these efforts.
    Recommendation: The Director of the Federal Housing Finance Agency should direct the Chief Financial Officer to (1) clearly define and document an approach that identifies the information systems that are key to financial reporting, the process areas these information systems support, the key control activities for each information system, and how the key control activities are evaluated and (2) collaborate, as appropriate, with the Inspector General to implement corresponding actions at FHFA-OIG.

    Agency: Federal Housing Finance Agency
    Status: Open

    Comments: FHFA agreed with this recommendation. During the FY 2017 evaluation of internal control over financial reporting, FHFA will clearly define and document an approach that identifies the information systems that are key to financial reporting, the process areas these information systems support, the key control activities for each information system, and how the key control activities are evaluated. FHFA will collaborate with the FHFA OIG in these efforts.
    Recommendation: The Director of the Federal Housing Finance Agency should direct the Chief Financial Officer to collaborate, as appropriate, with the Inspector General to (1) develop a complete list of the specific provisions of laws and regulations that may have an effect on material amounts and related disclosures in the financial statements that are applicable to FHFA-OIG and (2) prepare documentation that clearly links each applicable provision of law or regulation to the key control activities tested.

    Agency: Federal Housing Finance Agency
    Status: Open

    Comments: FHFA agreed with this recommendation. FHFA will collaborate with the FHFA OIG to develop a complete list of the specific provisions of laws and regulations that may have an effect on material amounts and related disclosures in the financial statements that are applicable to the FHFA OIG and prepare documentation that clearly links each applicable provision of law or regulation to the key control activities tested.
    Recommendation: The Director of the Federal Housing Finance Agency should direct the Chief Financial Officer to design an evaluation process that reasonably assures assignment of independent roles between the implementation and monitoring of control activities that are significant to the evaluation of internal control over financial reporting.

    Agency: Federal Housing Finance Agency
    Status: Open

    Comments: FHFA agreed with this recommendation. FHFA is designing an evaluation process that reasonably assures assignment of independent roles between implementation and monitoring of control activities that are significant to the evaluation of internal control over financial reporting. To this end, FHFA has hired an independent contractor to aid in the evaluation process for FY 2017, and has involved staff from FHFA's Office of Quality Assurance in the FY 2017 evaluation process to reasonably assure independent roles between monitoring and implementation going forward.
    Director: Dalkin, James R
    Phone: (202) 512-3133

    1 open recommendations
    Recommendation: The U.S. Securities and Exchange Commission should direct the COO and CFO to implement controls, such as periodic reviews of asset dispositions, to help reasonably assure that SEC's procedures for the preparation and maintenance of documentation related to the disposition of assets are consistently implemented and that any deviations from established procedures are documented.

    Agency: United States Securities and Exchange Commission
    Status: Open

    Comments: SEC Officials are still working on corrective actions as of the end of fiscal year 2016. We will follow up on this recommendation during our fiscal year 2017 SEC financial statement audit.
    Director: Malenich, J Lawrence
    Phone: (202) 512-3406

    2 open recommendations
    Recommendation: The CFPB should direct the Chief Financial Officer to design and implement control procedures that require coordination between the Office of Procurement and other program offices at the time of capitalization to ensure that property and equipment costs, including costs associated with internal-use software, are properly capitalized or expensed as appropriate.

    Agency: Consumer Financial Protection Bureau
    Status: Open

    Comments: Although CFPB took actions to attempt to address this recommendation, as of September 30, 2016, it was still in the process of implementing additional corrective actions. In addition, our fiscal year 2016 audit continued to identify deficiencies over the recording of property, equipment, and software costs. We will continue to evaluate CFPB's actions to address this recommendation during our fiscal year 2017 financial statement audit.
    Recommendation: The CFPB should direct the Chief Financial Officer to strengthen the design and implementation of control procedures to require, as part of the Office of the Chief Financial Officer's quarterly review procedures, review of underlying supporting documents, including tracking schedules, invoices, and obligating documents, to ensure that property and equipment transactions are properly identified and capitalized or expensed as appropriate.

    Agency: Consumer Financial Protection Bureau
    Status: Open

    Comments: As of September 30, 2016, we continued to find that the Office of the Chief Financial Officer's review was not always effective in timely detecting and correcting classification errors between costs that should be capitalized and costs that should be expensed. We will continue to evaluate CFPB's actions to address this recommendation during our fiscal year 2017 financial statement audit.
    Director: Clark, Cheryl E
    Phone: (202) 512-9377

    3 open recommendations
    Recommendation: The Commission should direct the appropriate officials to establish and implement written policies and procedures requiring timely and continuous supervisory review of all financial transactions.

    Agency: American Battle Monuments Commission
    Status: Open

    Comments: In the Commission's fiscal year 2016 Independent Auditor's Report, the auditor reported that the Commission resolved the material weakness related to not effectively reviewing financial transactions to ensure that they were accurate, valid, complete, and recorded in the appropriate accounting period. We contacted the agency to ask for further information on the policy and process for supervisory review of financial transactions, but no response was received within the established deadline for us to conduct our follow up. Therefore, because we were not able to verify that related policies and procedures were established and implemented, we will follow up on this open recommendation at a later date.
    Recommendation: To improve its monitoring of internal control, the Commission should direct the appropriate officials to establish and implement written policies and procedures for planning and conducting the Commission's annual assessment of internal control over financial reporting as required by OMB A-123. The policies and procedures should include; (1) documenting an understanding of its internal control environment, which entails such elements as the tone at the top, ethical standards, and personnel management, which can have a significant effect on how the organization functions and the integrity of its financial accounting and reporting; (2) documenting its assessment of the risk of material misstatement to its financial statements; (3) establishing and documenting its internal control objectives and related internal control activities in place to meet those objectives; (4) documenting the tests to be performed and the results of each test, clearly identifying exceptions and resulting deficiencies; and (5) establishing a corrective action plan for all identified deficiencies that specifies how and when each deficiency will be corrected, and assigning responsibility for its effective and timely resolution.

    Agency: American Battle Monuments Commission
    Status: Open

    Comments: In the Commission's fiscal year 2016 Independent Auditor's Report, the auditor continued to report that the Commission did not have an adequate process for monitoring the design and operating effectiveness of its internal control to identify, evaluate, and correct internal control deficiencies. For example, the Commission did not document its OMB A-123 approach for assessing its internal control, or provide sufficient, appropriate evidence to support its conclusions on the effectiveness of its internal control activities. The Commission responded that it will continue to implement an enterprise-wide system of controls and monitor and report on those controls in compliance with FMFIA. During fiscal year 2017, the Commission informed us that they issued a related policy, however, their independent auditor continues to identify this area as a material weakness. Therefore, we will follow up on this open recommendation at a later date.
    Recommendation: To improve its monitoring of internal control, the Commission should direct the appropriate officials to establish and implement written policies and procedures for monitoring the activities of the external service organizations that perform significant aspects of the Commission's financial transaction processing and reporting, including implementing relevant complementary user entity controls identified by the service auditors.

    Agency: American Battle Monuments Commission
    Status: Open

    Comments: In the Commission's fiscal year 2015 Independent Auditor's Report, the auditor continued to report that the Commission did not adequately document and monitor the effectiveness of internal controls at the service organizations that performed significant aspects of its financial transaction processing and reporting, including processing its federal employee payroll transactions, reconciling its fund balance with Treasury, and preparing its annual financial statements. Specifically, ABMC did not evaluate the service organizations' service auditor reports that contained information on the service organizations' controls and the effectiveness of those controls, and did not consider the impact of the findings and conclusions contained in the service auditor reports on the effectiveness of its internal control. Further, ABMC did not design and implement appropriate complementary user entity controls that were identified by the service auditors. The Commission stated that it will continue to implement an enterprise-wide system of controls and monitor and report on those controls in compliance with FMFIA during fiscal year 2017. Therefore, we will follow up on this open recommendation at a later date.
    Director: Clark, Cheryl E
    Phone: (202)512-3000

    7 open recommendations
    Recommendation: The Secretary of the Commission should instruct the Director of Finance at Commission headquarters to monitor monthly cash reconciliations for all Fund Balance with Treasury accounts Commissionwide to ensure their completeness and accuracy.

    Agency: American Battle Monuments Commission
    Status: Open

    Comments: During fiscal year 2012, the Commission contracted with the Interior Business Center (IBC) to perform its monthly cash reconciliations with Treasury. During our testing, we found that IBC effectively reconciled cash on hand to Treasury records. However, we found that ABMC did not effectively monitor IBC's reconciliations. Specifically, ABMC did not document its review of the FMS-224 and Fund Balance with Treasury reconciliations performed by IBC. To fully address this recommendation, ABMC needs to document its review of the IBC prepared reconciliations to ensure they are accurate and complete. During fiscal year 2017, the Commission informed us that they plan to develop and implement corrective actions to address our recommendation. Therefore, we will follow up on this open recommendation at a later date.
    Recommendation: The Secretary of the Commission should instruct the Director of Human Resources and Administration at Commission headquarters to maintain a consolidated Active Contracts List, or require the Paris Overseas Office to maintain a separate list, with information on each contract including the name of the contact person; the status of work completed; whether retainage amounts had been paid; and whether any amounts were pending due to disagreements on work performed.

    Agency: American Battle Monuments Commission
    Status: Open

    Comments: During our fiscal year 2012 audit, although the Commission provided GAO with active contract lists, we determined that these lists were not consolidated nor were they adequately maintained by the director of Engineering. We also continued to find instances where the Commission did not properly close contracts and deobligate funds. In addition, the Commission could not identify any specific actions taken to address this recommendation. During our fiscal year 2017 follow-up, the Commission informed us that they plan to implement an automated procurement system that will meet the intent of our recommendation. Therefore, we will follow up on this open recommendation at a later date.
    Recommendation: The Secretary of the Commission should instruct the Director of Human Resources and Administration at Commission headquarters to ensure that the Active Contracts List is reconciled to contracts on the undelivered orders report produced by the Commission's accounting system.

    Agency: American Battle Monuments Commission
    Status: Open

    Comments: During our fiscal year 2012 audit, we found that the Headquarters active contracts list had not been reconciled to the undelivered orders account. In addition, we concluded that these lists were not adequately maintained. We also continued to find instances where the Commission did not properly close contracts and deobligate funds. In addition, the Commission could not identify any specific actions taken to address this recommendation. During our fiscal year 2017 follow-up, the Commission informed us that they plan to develop and implement procurement-related standard operating procedures to address our recommendation. Therefore, we will follow-up on this recommendation at a later date.
    Recommendation: The Secretary of the Commission should instruct the Director of Finance at Commission headquarters to follow existing budgetary procedures to ensure that contracts are officially agreed to and executed as of or before the date of obligation.

    Agency: American Battle Monuments Commission
    Status: Open

    Comments: During our fiscal year 2011 audit of the American Battle Monuments Commission's financial statements, the Commission informed us that this recommendation was implemented with FMS and that ABMC now follows commitment accounting which prevents contracts from being signed before funds are reserved. During our 2012 testing we continued to monitor and we found no related issues. However, the Commission was unable to provide documentation or support for the corrective action instituted with FMS. During our fiscal year 2017 follow-up, the Commission informed us that they plan to implement an automated procurement system that will meet the intent of our recommendation. Therefore, we will follow up on this open recommendation at a later date.
    Recommendation: The Secretary of the Commission should instruct the Director of Human Resources at the Commission's Paris Overseas Office to follow existing policy to prepare, approve, and file current forms to support pay changes in foreign employee's official personnel file.

    Agency: American Battle Monuments Commission
    Status: Open

    Comments: During our fiscal year 2012 audit, we tested a sample of payroll transactions and found that not all personnel files contained accurate forms to support current payroll information. In one sample, the ABM-87 was not approved by a Director or designee. In another sample, the salary for the grade and step did not match that of the employee's local compensation plan. In a third sample, the employee's salary was not updated for a General Schedule step increase until almost a year later. During our fiscal year 2017 follow-up, the Commission informed us that they plan to implement an automated HR system that will meet the intent of our recommendation. Therefore, we will follow up on this open recommendation at a later date
    Recommendation: The Secretary of the Commission should instruct the Director of Human Resources at the Commission's Paris Overseas Office to establish a consistent policy for Paris and Rome offices to support changes in employee's official personnel files by using an SF-50, Notification of Personnel Action, for all employees.

    Agency: American Battle Monuments Commission
    Status: Open

    Comments: During fiscal year 2012, we determined that the Commission's policy is to use two forms for payroll actions. The headquarters office processes SF-50s for General Schedule (GS) employees and the Paris office uses SF-50s for GS employees and ABM-87s for foreign employees. We did not find any exception with this policy as the SF-50 is a required form for processing payroll actions for GS employees and the ABM 87 is a standard form for processing payroll actions for foreign employees. However, this policy is not documented. To clarify the intent of this recommendation, which is for the Commission to be consistent in processing payroll actions, we issued a subsequent recommendation that calls for the Commission to direct appropriate officials to establish written policies and procedures outlining the key tasks, roles, and responsibilities of both the Human Resources Directorate and the Finance Directorate, including a formal mechanism for communicating all decisions and actions related to processing payroll for foreign employees. This would include the processing of payroll actions. During our fiscal year 2017 follow-up, the Commission informed us that training was provided to employees in the proper production of personnel documentation, however, no policy was provided. Therefore, we will follow up on this open recommendation at a later date.
    Recommendation: The Secretary of the Commission should instruct the Finance Directorate's Finance Officer at the Commission's Paris Overseas Office to modify existing accounting procedures to instruct Finance Directorate personnel to enter the date on the invoice into the accounting system.

    Agency: American Battle Monuments Commission
    Status: Open

    Comments: During our audit of the American Battle Monuments Commission's (the Commission) fiscal year 2010 financial statements, we found that Commission controls were not always effective in ensuring that the receipt and acceptance of goods and services were properly authorized and that invoice dates were accounted for in a consistent manner. The Commission informed us that all Finance personnel were instructed to enter both the invoice receipt date and the invoice date when processing invoices for payment. However, during our fiscal year 2012 audit, we found that the date on the invoice was not consistently entered into the accounting system. For example, we found inconsistencies with the invoice receipt date being entered into the accounting system as either the date the goods were received, the date the invoice was received, or the date the invoice was being entered into the financial system. In addition, we could not verify whether current accounting procedures included this requirement. During our fiscal year 2017 follow-up, the Commission informed us that the invoice date entered in Oracle is taken directly from the invoice approval stamp, however, the Commission was not able to provide a policy, procedures, or statement of work supporting the actions taken. We contacted the agency to ask for further information but no response was received within the established deadline for us to conduct our follow up. Therefore, we will follow up on this recommendation at a later date.
    Director: Clark, Cheryl E
    Phone: (202)512-9377

    2 open recommendations
    Recommendation: The Director of Personnel and Administration at Commission headquarters should follow established policies and procedures in taking action to conduct a review of contracts and purchase orders outstanding for completeness, accuracy, and proper dates.

    Agency: American Battle Monuments Commission: Human Resources and Administration Director
    Status: Open

    Comments: In response to this recommendation, the Commission stated that it completed such a review in fiscal year 2009 and made corrections as to how the Commission issues contracts and purchase orders. In addition, the Commission hired a consultant, a retired Federal Government Contracting Officer, to assist with contracting activities and to help draft and implement the Commission's policies and procedures. During our fiscal year 2010 audit, we found errors in relation to the Commission's contracts and found that Headquarter's Active Contracts List for contracts over $100,000 was not up to date. We found 3 out of 20 expenditures we tested that were obligated before there was a signed contract. During our fiscal year 2011 audit, we found that the Headquarter's Active Contracts List for contracts over $100,000 was not being kept up to date and reconciled to the undelivered orders account. During our fiscal year 2012 audit, we found there were no policies and procedures for processing engineering contracts. We were informed by the Commission that they were in the process of documenting policies and procedures for the entire contracting process. We also found there were no documented policies and procedures for reviewing year end open obligations and accounts payable to verify the accuracy and validity of year end balances. Additionally, there was no documented review of accounts payable or open obligations performed at year-end for all the open contracts. As a result, we found errors in year-end aged vendor liability reports and open purchase orders that no longer represented valid obligations and should have been deobligated. During our fiscal year 2017 follow-up, the Commission informed us that they plan to establish procurement-related policies and procedures to address our recommendation. We will follow up on this open recommendation at a later date.
    Recommendation: The Director of Personnel and Administration at Commission headquarters should follow established policies and procedures in taking action to coordinate procurement activity with finance personnel to ensure accurate and compliant obligation of funding of procurements, including proper application of multiyear contract terms.

    Agency: American Battle Monuments Commission: Human Resources and Administration Director
    Status: Open

    Comments: In response to this recommendation, the Commission stated that acquisition personnel would ensure coordination with finance personnel to be certain that accurate and compliant obligation of funding of procurements, including proper application of multi-year contract terms. During our fiscal year 2010 and 2011 audits, we found errors in relation to the Commission's contracts and determined improvements were still needed in the oversight of contracts. During our fiscal year 2012 audit, we found there were no policies and procedures for processing engineering contracts. We were informed by the Commission that they were in the process of documenting policies and procedures for the entire contracting process. We also found there were no documented policies and procedures for reviewing year end open obligations and accounts payable to verify the accuracy and validity of year end balances. Additionally, there was no documented review of accounts payable or open obligations performed at year-end for all the open contracts. As a result, we found errors in year-end aged vendor liability reports and open purchase orders that no longer represented valid obligations and should have been deobligated. During our fiscal year 2017 follow-up, the Commission informed us that they plan to establish procurement-related policies and procedures to address our recommendation. We will follow up on this open recommendation at a later date.
    Director: Khan, Asif A
    Phone: (202)512-3000

    4 open recommendations
    Recommendation: The Secretary of Defense should direct the Under Secretary of Defense (Comptroller), in coordination with the military service secretaries (as appropriate), to revise the Army procedures to include specific steps required to retain documentation of the activities performed and related results.

    Agency: Department of Defense
    Status: Open

    Comments: In commenting on the draft report, DOD concurred with the recommendation and cited actions in process to revise its Financial Management Regulation (FMR). In 2016, the Office of the Under Secretary of Defense (Comptroller) (OUSD(C)) stated that the Components provided comments and edits to the draft Chapter 23. The comments were more detailed than projected and require extensive research to verify. However, it is not clear whether this action will provide sufficient Army-specific procedural requirements. As of August 2017, we have not been able to obtain supporting documentation to assess whether the recommendation was implemented.
    Recommendation: The Secretary of Defense should direct the Under Secretary of Defense (Comptroller), in coordination with the military service secretaries (as appropriate), to revise the Marine Corps and Air Force procedures to include specific steps required to validate data in the OCO report including reconciliations and retain documentation of the activities performed and related results.

    Agency: Department of Defense
    Status: Open

    Comments: In commenting on the draft report, DOD concurred with the recommendation and cited actions in process to revise its Financial Management Regulation (FMR). In 2016, the Office of the Under Secretary of Defense (Comptroller) (OUSD(C)) stated that the Components provided comments and edits to the draft Chapter 23. The comments were more detailed than projected and require extensive research to verify. However, it is not clear whether this action will provide sufficient Marine Corps and Air Force-specific procedural requirements. As of August 2017, we have not been able to obtain supporting documentation to assess whether the recommendation was implemented.
    Recommendation: The Secretary of Defense should direct the Under Secretary of Defense (Comptroller), in coordination with the military service secretaries (as appropriate), to establish Navy procedures to include specific steps required to validate data in the OCO report including variance analysis and reconciliations, and retain documentation of the activities performed and related results.

    Agency: Department of Defense
    Status: Open

    Comments: In commenting on the draft report, DOD concurred with the recommendation and cited actions in process to revise its Financial Management Regulation (FMR). In 2016, the Office of the Under Secretary of Defense (Comptroller) (OUSD(C)) stated that the Components provided comments and edits to the draft Chapter 23. The comments were more detailed than projected and require extensive research to verify. However, it is not clear whether this action will provide sufficient Navy-specific procedural requirements. As of August 2017, we have not been able to obtain supporting documentation to assess whether the recommendation was implemented.
    Recommendation: The Secretary of Defense should direct the Under Secretary of Defense (Comptroller), in coordination with the military service secretaries (as appropriate), to revise DOD requirements in FMR 7000.14-R, Volume 12, Chapter 23, Contingency Operations, to provide clear, detailed guidance on (1) conducting reconciliations and other validations and (2) documenting military service-level reviews and DOD Comptroller-level reviews.

    Agency: Department of Defense
    Status: Open

    Comments: In commenting on the draft report, DOD concurred with the recommendation and cited actions in process to revise its Financial Management Regulation (FMR). In 2016, the Office of the Under Secretary of Defense (Comptroller) (OUSD(C)) stated that the Components provided comments and edits to the draft Chapter 23. The comments were more detailed than projected and require extensive research to verify. As of August 2017, we have not been able to obtain supporting documentation to assess whether the recommendation was implemented.
    Director: Clark, Cheryl E
    Phone: (202)512-9377

    1 open recommendations
    Recommendation: The Finance Officer at the Commission's European Regional (ER) office should instruct and monitor approving officials to ensure that expenditure transactions are dated when goods and services are received and approved before payments are processed.

    Agency: American Battle Monuments Commission: European Regional Office
    Status: Open

    Comments: During our fiscal years 2009, 2010, and 2011 financial statement audits, we continued to find expenditure transactions being processed prior to the goods or services being received and approved for payment. During our fiscal year 2012 audit, the Commission informed us that since the transition to a new financial management system in August 2011, all receiving is conducted in the iProcurement system (part of the Oracle accounting system) and must be complete before an invoice is processed for payment in Oracle. Although we found that invoices were approved before payment, we continued to find instances where the invoices were not dated and/or signed when goods or invoices were received. During fiscal year 2017, the Commission informed us that they developed a related policy to address our recommendation. However, the Commission has not provided documentation or an explanation of the controls used by management for monitoring (i.e. evaluating or reviewing) the effective implementation of the procedures established related to this recommendation. Therefore, we will continue to follow up on this open recommendation with the Commission at a later date.
    Director: Engel, Gary T
    Phone: (202)512-8815

    1 open recommendations
    including 1 priority recommendation
    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, in coordination with the Controller of OMB's Office of Federal Financial Management, to develop and implement effective processes for monitoring and assessing the effectiveness of internal control over the processes used to prepare the CFS.

    Agency: Department of the Treasury
    Status: Open
    Priority recommendation

    Comments: As of the completion of our fiscal year 2016 consolidated financial statements (CFS) audit, Treasury and OMB agreed that this recommendation remained open. Treasury designed and implemented an OMB Circular No. A-123 internal control review for the CFS compilation processes. In fiscal year 2017, Treasury plans to use the internal control review to support its assessment on the effectiveness of internal controls over the processes used to prepare the CFS. We will follow-up on progress made by Treasury and OMB as part of our fiscal year 2017 CFS audit, which is ongoing as of March 2017.
    Director: Clark, Cheryl E
    Phone: (202) 512-3000

    1 open recommendations
    Recommendation: To address other issues that may exist in IRS's master files that affect penalty calculations, the Commissioner of Internal Revenue should direct appropriate IRS officials to, in instances where programs are not functioning in accordance with the intent of the IRM, take appropriate action to correct the programs so that they function in accordance with the IRM.

    Agency: Department of the Treasury: Internal Revenue Service
    Status: Open

    Comments: According to IRS, it had substantially completed its corrective actions to address 19 penalty programming issues it had identified from its internal assessment of penalty computation programs. However, as of September 30, 2016, IRS had not provided us with supporting documentation to validate that it completed the corrective actions. We will continue to evaluate IRS's actions to address this recommendation during our fiscal year 2017 financial statement audit.
    Director: Engel, Gary T
    Phone: (202)512-8815

    1 open recommendations
    including 1 priority recommendation
    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to establish effective processes and procedures to ensure that appropriate information regarding litigation and claims is included in the governmentwide legal representation letter.

    Agency: Department of the Treasury
    Status: Open
    Priority recommendation

    Comments: As of the completion of our fiscal year 2016 consolidated financial statements (CFS) audit, Treasury and OMB agreed that this recommendation remained open. Treasury and OMB plan to leverage the existing schedules to the legal representation letters to perform analytics on the items below the threshold to determine the materiality at the aggregate level. We will follow-up on progress made by Treasury and OMB as part of our fiscal year 2017 CFS audit, which is ongoing as of March 2017.
    Director: Engel, Gary T
    Phone: (202)512-8815

    2 open recommendations
    including 2 priority recommendations
    Recommendation: In the interim, until the joint task force is established and a strategic plan is developed, the Director of OMB should direct the Controller of OMB, in coordination with the Fiscal Assistant Secretary of the Treasury, to work with Justice and certain other executive branch agencies to ensure that these agencies report or disclose relevant criminal debt information in conformity with GAAP in their financial statements and have such information subjected to audit.

    Agency: Executive Office of the President: Office of Management and Budget
    Status: Open
    Priority recommendation

    Comments: As of the completion of our fiscal year 2016 consolidated financial statements (CFS) audit, Treasury and OMB agreed that this recommendation remained open. Treasury plans to provide guidance in the FY 2017 Treasury Financial Manual 2-4700 on the process to be followed by federal agencies to report and disclose relevant criminal debt information. We will follow-up on progress made by Treasury and OMB as part of our fiscal year 2017 CFS audit, which is ongoing as of March 2017.
    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary to include relevant criminal debt information in the CFS or document the specific rationale for excluding such information.

    Agency: Department of the Treasury
    Status: Open
    Priority recommendation

    Comments: As of the completion of our fiscal year 2016 consolidated financial statements (CFS) audit, Treasury and OMB agreed that this recommendation remained open. Treasury plans to provide guidance in the FY 2017 Treasury Financial Manual 2-4700 on the process to be followed by federal agencies to report and disclose relevant criminal debt information. We will follow-up on progress made by Treasury and OMB as part of our fiscal year 2017 CFS audit, which is ongoing as of March 2017.
    Director: Engel, Gary T
    Phone: (202)512-8815

    7 open recommendations
    including 7 priority recommendations
    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to help ensure that agencies provide adequate information in their legal representation letters regarding the expected outcome of the cases.

    Agency: Department of the Treasury
    Status: Open
    Priority recommendation

    Comments: As of the completion of our fiscal year 2016 consolidated financial statements (CFS) audit, Treasury and OMB agreed that this recommendation remained open. Treasury documented the processes that federal entities are following in using the "unable to determine" expected outcome of legal cases. Treasury and OMB will continue to work with GAO to close any remaining gaps. We will follow-up on progress made by Treasury and OMB as part of our fiscal year 2017 CFS audit, which is ongoing as of March 2017.
    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to establish written policies and procedures to help ensure that major treaty and other international agreement information is properly identified and reported in the CFS. Specifically, these policies and procedures should require that agencies develop a detailed schedule of all major treaties and other international agreements that obligate the U.S. government to provide cash, goods, or services, or that create other financial arrangements that are contingent on the occurrence or nonoccurrence of future events (a starting point for compiling these data could be the State Department's Treaties in Force).

    Agency: Department of the Treasury
    Status: Open
    Priority recommendation

    Comments: As of the completion of our fiscal year 2016 consolidated financial statements (CFS) audit, Treasury and OMB agreed that this recommendation remained open. Treasury and OMB plan to leverage the existing process and oversight followed by the Department of State to enhance the guidance issued to federal entities to ensure the proper reporting and accounting on treaties and international agreements. We will follow-up on progress made by Treasury and OMB as part of our fiscal year 2017 CFS audit, which is ongoing as of March 2017.
    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to establish written policies and procedures to help ensure that major treaty and other international agreement information is properly identified and reported in the CFS. Specifically, these policies and procedures should require that agencies classify all such scheduled major treaties and other international agreements as commitments or contingencies.

    Agency: Department of the Treasury
    Status: Open
    Priority recommendation

    Comments: As of the completion of our fiscal year 2016 consolidated financial statements (CFS) audit, Treasury and OMB agreed that this recommendation remained open. Treasury and OMB plan to leverage the existing process and oversight followed by the Department of State to enhance the guidance issued to federal entities to ensure the proper reporting and accounting on treaties and international agreements. We will follow-up on progress made by Treasury and OMB as part of our fiscal year 2017 CFS audit, which is ongoing as of March 2017.
    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to establish written policies and procedures to help ensure that major treaty and other international agreement information is properly identified and reported in the CFS. Specifically, these policies and procedures should require that agencies disclose in the notes to the CFS amounts for major treaties and other international agreements that have a reasonably possible chance of resulting in a loss or claim as a contingency.

    Agency: Department of the Treasury
    Status: Open
    Priority recommendation

    Comments: As of the completion of our fiscal year 2016 consolidated financial statements (CFS) audit, Treasury and OMB agreed that this recommendation remained open. Treasury and OMB plan to leverage the existing process and oversight followed by the Department of State to enhance the guidance issued to federal entities to ensure the proper reporting and accounting on treaties and international agreements. We will follow-up on progress made by Treasury and OMB as part of our fiscal year 2017 CFS audit, which is ongoing as of March 2017.
    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to establish written policies and procedures to help ensure that major treaty and other international agreement information is properly identified and reported in the CFS. Specifically, these policies and procedures should require that agencies disclose in the notes to the CFS amounts for major treaties and other international agreements that are classified as commitments and that may require measurable future financial obligations.

    Agency: Department of the Treasury
    Status: Open
    Priority recommendation

    Comments: As of the completion of our fiscal year 2016 consolidated financial statements (CFS) audit, Treasury and OMB agreed that this recommendation remained open. Treasury and OMB plan to leverage the existing process and oversight followed by the Department of State to enhance the guidance issued to federal entities to ensure the proper reporting and accounting on treaties and international agreements. We will follow-up on progress made by Treasury and OMB as part of our fiscal year 2017 CFS audit, which is ongoing as of March 2017.
    Recommendation: The Secretary of the Treasury should direct the Fiscal Assistant Secretary, working in coordination with the Controller of OMB's Office of Federal Financial Management, to establish written policies and procedures to help ensure that major treaty and other international agreement information is properly identified and reported in the CFS. Specifically, these policies and procedures should require that agencies take steps to prevent major treaties and other international agreements that are classified as remote from being recorded or disclosed as probable or reasonably possible in the CFS.

    Agency: Department of the Treasury
    Status: Open
    Priority recommendation

    Comments: As of the completion of our fiscal year 2016 consolidated financial statements (CFS) audit, Treasury and OMB agreed that this recommendation remained open. Treasury and OMB plan to leverage the existing process and oversight followed by the Department of State to enhance the guidance issued to federal entities to ensure the proper reporting and accounting on treaties and international agreements. We will follow-up on progress made by Treasury and OMB as part of our fiscal year 2017 CFS audit, which is ongoing as of March 2017.
    Recommendation: GAO recommends that the note disclosure for stewardship responsibilities related to the risk assumed for federal insurance and guarantee programs meet the requirements of Statement of Federal Financial Accounting Standards No. 5, Accounting for Liabilities of the Federal Government, paragraph 106, that requires that when financial information pursuant to Financial Accounting Standards Board standards on federal insurance and guarantee programs conducted by government corporations is incorporated in general purpose financial reports of a larger federal reporting entity, the entity should report as required supplementary information what amounts and periodic change in those amounts would be reported under the "risk assumed" approach.

    Agency: Department of the Treasury
    Status: Open
    Priority recommendation

    Comments: As of the completion of our fiscal year 2016 consolidated financial statements (CFS) audit, Treasury agreed that this recommendation remained open. Treasury will continue to request this information from agencies at interim and through year-end reporting requirements in the Treasury Financial Manual 2-4700. In addition, Treasury will continue to participate on the Federal Accounting Standards Advisory Board (FASAB) Risk Assumed Task Force and implement any related changes corresponding to the issuance of revised or new federal accounting standards. We will follow-up on progress made by Treasury as part of our fiscal year 2017 CFS audit, which is ongoing as of March 2017.