Federal Prison Industries, Inc., Financial Statements for FY 1985

Gao ID: AFMD-86-40 May 29, 1986

GAO examined the Bureau of Prisons' Federal Prison Industries' (UNICOR) balance sheet for the year ended September 30, 1985, and its statements of income and cumulative results of operations for the year then ended.

GAO found that: (1) the balance sheet presented fairly the UNICOR financial position as of September 30, 1985, in conformity with generally accepted accounting principles applied on a consistent basis; (2) it could not express an opinion on the related statements of income and changes in financial position because it did not observe physical inventories UNICOR took at the beginning of the year; and (3) UNICOR perpetuated one severe internal control weakness by failing to reconcile, on a monthly basis, its cash balance with the cash balance that the Treasury reported for it.

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: Dennis J. Duquette Team: General Accounting Office: Accounting and Financial Management Division Phone: (202) 275-9406


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