Weaknesses in the Army European Command's Financial Management System

A questionnaire survey to evaluate the procedures and controls over revenue and expenditure transactions in the United States Army, Europe, and the Seventh Army, was conducted at command headquarters and seven finance and accounting activities. The survey was designed to identify potential problem areas in the system of internal controls over collections, disbursements, imprest funds, and obligations. Results of the survey indicated that the Command needs to: improve controls over collections received by mail, improve controls over the use of foreign air carriers, develop consistent procedures for taking cash discounts, improve controls over bank statement reconciliations and signature plates, fully implement quality assurance reviews, improve controls over imprest funds, require that the basis for and computation of estimated obligations be shown on the obligating document, and improve certain cash management procedures.