S. 2633

In testimony before a congressional committee, GAO strongly urged the enactment of S. 2633, a bill designed to strengthen the Federal audit function in the territories of American Samoa, Guam, the Northern Mariana Islands, the Virgin Islands, and the Trust Territory of the Pacific Islands, which have had longstanding problems in their financial management systems. The bill would transfer the audit functions of the U.S. Government Comptrollers in these territories from the Department of the Interior's Office of the Assistant Secretary for Territorial and International Affairs to Interior's Office of the Inspector General. Because of financial management problems and the substantial amounts of Federal financial assistance provided to the territories, GAO believes that continued Federal audit oversight is needed; however, it should be more independent and effective. More Federal technical assistance and the assumption of increased responsibility by the territories for financial management would further improve audit effectiveness.