Financial Management

During the last two years, financial managers at the Department of Agriculture (USDA) have made a commitment not only to resolve financial management weaknesses that have prevented the agency from receiving an unqualified opinion on its financial statements but also to achieve its long-term goal of financial accountability. The one notable exception involves Rural Development, one of USDA's component agencies. Rural Development has made slow progress in improving credit program costs and has missed several deadlines because of a shortage in both staff and funding resources. As a result, USDA is likely several years away from achieving financial accountability.

GAO noted that: (1) USDA continues to face major challenges in correcting severe and long-standing financial management problems and achieving financial accountability; (2) during the last 2 years USDA financial managers have taken these challenges seriously and made a commitment of resources not only to resolve financial management weaknesses that have precluded the agency from receiving an unqualified, or "clean" opinion on its financial statements, but also to begin moving toward a long-term goal of achieving financial accountability; (3) there is one notable exception, however, to GAO's assessment of USDA's efforts; (4) in August 2000, GAO reported that the Rural Development Service, one of USDA's major component agencies, has made slow progress in improving credit program cost estimates and missed several milestone dates because of a shortage in both the staff and funding resources that are needed to resolve long-standing credit reform weaknesses; and (5) because of this issue, USDA is likely several years away from achieving financial accountability.