Financial Audit

This report presents the results of GAO's audit of the Bureau of the Public Debt's fiscal year 1997 schedule of federal debt. As of September 1997, federal debt managed by the Bureau totaled $5.4 trillion, which consisted of $3.8 trillion owed to the public and $1.6 trillion owed to federal entities, such as the Social Security trust funds, for money borrowed to fund the government's operations. The related interest expense for fiscal year 1997 totaled $356 billion. GAO found that the schedule of federal debt was reliable in all material respects; that internal controls effectively safeguarded assets from material loss, ensured compliance with laws governing the use of budget authority and with other laws and regulations relevant to the federal debt managed by the Bureau, and ensured that there were no material misstatements in the schedule of federal debt; that there was no reportable noncompliance with laws and regulations; and that there were no instances in which the Bureau's financial management systems did not substantially comply with the requirements of the Federal Financial Management Improvement Act of 1996.

GAO noted that: (1) the Schedule of Federal Debt was reliable in all material aspects; (2) management fairly stated that the related internal controls in place on September 30, 1997, were effective in safeguarding assets, as reflected in footnotes 5 and 6 to the Schedule of Federal Debt, from material loss, assuring material compliance with laws governing the use of budget authority and with other laws and regulations relevant to the Federal Debt managed by BPD, and assuring that there were no material misstatements in the Schedule of Federal Debt; and (3) there was no reportable noncompliance with selected provisions of laws and regulations tested by GAO, and there were no instances where BPD's financial management systems, related to the Schedule of Federal Debt, did not substantially comply with the requirements of the Federal Financial Management Improvement Act of 1996.