Financial Integrity Act

GAO reviewed the federal government's internal control and accounting systems, focusing on agencies': (1) progress in complying with the Federal Managers' Financial Integrity Act of 1982; and (2) efforts to correct remaining problems.

GAO found that: (1) agencies reported that more than a third of the serious internal control weaknesses in financial management, procurement, debt collection, and property management which they had cited since 1983 remained uncorrected; and (2) agency self-evaluations identified 229 new weaknesses in 1986. GAO also found that agencies: (1) reported that they had corrected many of their internal control problems; (2) did not always ensure the prompt and effective correction of problems; and (3) sometimes delayed the resolution of audit findings, which could have saved millions of dollars. In addition, GAO found that: (1) agencies' accounting systems did not provide the reliable and timely data they needed to decide policy or manage their operations; (2) agencies' attempts to correct these problems were frequently costly or seriously delayed; and (3) Congress is considering legislation to ensure the implementation and continuity of comprehensive reform of the government's accounting and financial management systems.