Financial Management

First Financial Audit of Customs Revealed Serious Problems Gao ID: T-AIMD-94-3 October 5, 1993

The first-ever financial audit of the U.S. Customs Service revealed serious financial management problems and identified related operating problems that threaten the efficiency and the effectiveness of Customs programs. GAO was unable to express an opinion on the reliability of Customs' fiscal year 1992 financial statements because of the lack of critical financial information, inadequate financial systems and processes, and an ineffective internal control structure. Internal controls failed to effectively safeguard assets, to provide a reasonable basis for determining material compliance with laws and regulations, and to eliminate material misstatements from the financial statements. These findings underscore the value of preparing and auditing annual financial statements and the need to accelerate governmentwide financial management reform through full implementation of the Chief Financial Officers Act of 1990.



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