Internal Control Problems at the U.S. Army Corps of Engineers Should Be Corrected

GAO reviewed the Corps of Engineers' system of accounting and internal controls to identify those controls that need management's attention, specifically, the controls over collections, receivables, disbursements, and imprest funds.

GAO found that: (1) the internal control weaknesses identified in recent Army Audit Agency (AAA) reports suggest that the Corps accounting system is not operating in accordance with established procedures and guidelines; (2) collections were not properly logged or adequately safeguarded; (3) accounts receivable were not sufficiently managed at most of the accounting stations; (4) the proper receipt forms were not always used for over-the-counter collections; (5) efforts to collect outstanding receivables were neither prompt nor aggressive; and (6) disbursement controls were weak at all stations. GAO also found that: (1) four stations did not file required information tax returns for personal service contractors; (2) government transportation requests were not effectively reconciled or adequately safeguarded; (3) controls over check-signing machines and blank government checks were insufficient; (4) verifications and audits of imprest funds were not made at required intervals; (5) obligations were sometimes incurred before the availability of funds was determined; and (6) internal control weaknesses occurred either because of deficiencies in Corps-wide policies and procedures or because established procedures were not consistently followed.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: John F. Simonette Team: General Accounting Office: Accounting and Financial Management Division Phone: (202) 275-9490