Weaknesses in the Drug Enforcement Administration's Financial Management System

A questionnaire survey was conducted to evaluate the procedures and controls of revenue and expenditure transactions of the Drug Enforcement Administration (DEA). The questionnaire covered the system of internal controls over collections, disbursements, imprest funds, and obligations.

Responses indicated potential weaknesses in the financial management system. DEA needs to: (1) improve controls over the disposition of seized and recovered funds; (2) improve control of collections; (3) have headquarters acknowledge receipt of collections; (4) periodically review outstanding travel advances; (5) segregate duties of cashiers; (6) explain missed discounts in writing; and (7) adequately support estimates of obligations. Although corrective actions were taken or promised in most cases, follow-up on these actions was suggested to determine whether the corrective actions were adequate.