Government Financial Management Systems]

In a speech before the third annual conference of the the Department of Agriculture's Financial Council, a GAO associate director stated that the Comptroller General has pushed strongly for the passage of the recently enacted Federal Managers' Financial Integrity Act; has been a strong supporter of the role of the inspectors general; and has been in the forefront of efforts to improve the budgeting, accounting systems approval, financial reporting, and auditing processes. However, more attention to problems in each of these areas is needed. The new act requires ongoing evaluations of the adequacy of internal accounting and administrative control systems of each executive agency. A GAO task force on internal controls has been established to publish a document which consolidates GAO policy and standards on internal controls. The creation of 18 statutory offices of inspector general will contribute greatly to improving internal controls in the Federal Government. In addition, GAO believes that, because the budget process has become extremely complicated and cumbersome, a high-level budget study group or commission to act as a catalyst for badly needed changes in Federal budgetary concepts and procedures is needed. The enactment of the proposed Budget Reform Act of 1982, or some of its features, will be an important first step toward bringing greater stability to Government activities. Accounting and financial reporting also need to be strengthened and integrated with the budget process. Many of the Federal accounting systems are designed to track expenditures by type rather than by area of concern. Thus, no assurance can be made that funds are expended as planned. GAO is currently studying how agencies can operate more effective and efficient accounting systems. It is updating title 2 of the GAO Policy and Procedures Manual and consolidating internal control requirements. GAO has also proposed changes in the accounting systems approval process. The Comptroller General also feels that an annual audit of the Federal Government might be both desirable and economical.