Weaknesses in Internal Financial and Accounting Controls at DOE Accounting Stations

GAO made a survey of the accounting controls over revenue and expenditure transactions at 10 accounting stations within the Department of Energy (DOE). The survey was based on questionnaires designed to identify potential internal control problems and on interviews and discussions with accounting station officials. When responses indicated potential weaknesses, GAO tested selected transactions to determine if the weaknesses existed but did not attempt to establish their extent or the precise corrective actions which were needed.

The survey identified weaknesses in internal controls over accounts receivable, collections, disbursements, imprest funds, and obligations. In addition, GAO noted a lack of audits of internal control procedures by DOE auditors and a general absence of local operating instructions. GAO found that: (1) accounts receivable were inadequately controlled, many receivables were not entered in the accounting records, and those that were recorded were not monitored to ensure timely collections; (2) collections were ineffectively safeguarded, were not properly logged in, correctly accounted for, or promptly deposited; (3) disbursements were made without complying with established procedures, preaudits were inadequate to preclude duplicate payments or overpayments, single monthly travel vouchers were not used, and Government transportation requests and airline tickets were ineffectively controlled; (4) imprest funds were poorly managed, were not periodically verified or audited, and opportunities to reduce fund balances had not been explored; (5) obligations were not properly handled, commitments were made before funds were certified as being available, and obligations were not validated at yearend; and (6) operating instructions and audit coverage were inadequate, written procedures were nonexistent or in draft form, and internal control audits were not being performed. Adequate internal audit coverage could have detected most of the control deficiencies discussed, thus, providing the agency management with the opportunity to correct them.

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) 275-1581