Commanding Officer Deseret Test C'enter Fort Dcmglas p&pJy-6pqy-~ Salt Lake City, Utah 84113 1111111111111 IIIllllllllsllllllllll lllllIIll Ill 9I. &?ar Sir: LM098945 The General Accounting Office has decided to terminate our review of the Deseret Test Center's Industrial Fund Accounting System. The accoLmting mamaP was submitted to our office by the Assistant Secretary of Defense (Comptroller) for approval in accordance with accounting priN5.pkS and stamkirds as prescribed by the Comptroller General. Hsrr+ ever, during our review the impkxx~1iation of Test Evaluation Anal.ysis ,Np"':, Hanagen~cnt Uniformity Plan (TEAS-W> was anncwnced and, as a result, substantial chsnges are to be made in the accounting system, Also, we were advised that personnel who would be working with cmr staff in makirag the changes necessary to conform to Title 2 of GAO's Policy and Procedures Manual for Guidance of Federal Agencies will be heavily in- volvled in implementing TEAM-UP. fn order to assist your staff in revising the Accounting PW~ual prim to resubmission, we are enclosing informaS comments on our observations during our review. You need nlot respond to these comments iH but we believe that they will, if considered when resuhitting the accosting system design, facilitate our approval when a resubmission is prepared * FJe wi.14. be glad to work cooperat?vely with you, within . available ma,npmaer $ In any way that we may be of assistance in develop- ing the accoun"b-ing ~systent so that it meets the crit~eria of the ComptrolZcr General and In developing a new submissiuqn of the system design. Thank you for the courtesies and coaperation extended to our staff derring their visit. A copy of this letter is being sent to the Assistant Secretary of the Army (Financial Management). S. D. McElyea Regional Manager Encllosure: as stated ‘I’ ““’ . : L ? .I L During our visit to DTC, we provided the Cor:ptrol.ler with a copy of I Title 2--Accounting --of the C-cneral Accountir,g Office Policy and Pro- cedures ?:anttal for Guidmce of Federal. Agencies, including a copy'of the revised pertinent parts of sectl;.on 27 dis tributed by tile Comptroller General on Eovmber 25, 197C, and the Z&view Guide for Federal. Agency AccountLng Systcns. Ve believe that these will prove very helpful to DTC officials in revising the system design for resubmission. DTC's subnission of a system design was in the form of a manual; however, it should be noted. that syster? designs c!ay be submitted in the form of eitl,ler systm design p?cl:a~es or fully devel.op3 liKlnuals * A n:anual is accqteble provided (1) the material is arrar;ged to distin- guish between and segregate, insofar as practical, the desi.g:n infoma- tion and the detailed operating procedures and instructions, and (23 it is accon!panied by a document that lists the design requirements as detailed in section 27.5 of Title 2 and identifies the section of the manual that responds to each requiremnt. Whether DTC"s revision involves a fully developed nanual or a design package, we believe SyStE!lil the folIowing factors are the major ones that should be stressed: 1. Identification of the relationskip of the accounting system to-- (a) the azmcyTs pro~raril, budget, and orp;s.nizational. strxture; (b) the rG.ssion.3, Euncticns, and f:inanc:a.l mans~ement necdq of the entity; ax1 (c) the a,:ency's total mat7ay;cmnt infomation system. _ We noted that the manual submitted defined the programming system. but did not relate the accounting systen to programming. We believe that a more specific identification of how the accounting classifica- tions relate to the prograrming classifications would tic desirable. We also noted that the manual gave objectives of the accounting system in relation to the areas named in'(b) Es (c) but did not show seecifically hov: the accounting system: relates to these areas. The system design submission should include a specific explanation of how the "built inli controls of the accounting systm achieve the objectives as stated. 2. A description., supported by a chart, of the overall recurrent re- porting plan in regard to both its internal operations, including lower manageKent echelons, and external.. reporting. 1 . I .;: : . 1 -4,-1 * / ” Ouu review indicated that the submission was iTlC&ilpl~tL? regarding internal reporlts. That is, it did not contain a listing by title and form number of all recurring internal reports prescribed by the system including the frequency and the period covered, or "as off3 dates fop: each report. Nor did it contain a sample of the format showing illus- trative data elements for each report. III 3. Complete list and description of the accounting records to be maintained. Appendix A to the manual submitted contains a '"Chart of Accounts" and a '"Ijescription of General Ledger Accounts." However, several ‘Ii accounts are listed in the description of general ledger accounts but .I, not in the chart of accounts. At least one account is listed in th'e il chart of accounts but not in the description of accounts. Also, the !I manual did not contain a listing of the subsidiary ledgers to be I maintained. I 4. Charts depicting the flow of docunentary data through the. princi- pal accounting processes, supplemented by sufficient description to enable relating the actions charted to the accounting objec- tives, records, internal controls, and financial reporting re- quirements included in the design presentation. The manual provides a good narrative description of the flak of data through the principal accounting processes; however, the addition of flow charts, as required, wouf.cl facilitate a reuieb7 of the system. 5, Adequate clocumentati.on to provide an understanding of the desip,n ‘Ofthe ADP system. some of the iypes of documentation r:hich are deemed to be nrx- essary to provide an understanding of the design of the system arc: a. An overall narrative description and accompanying flow chart of the general flow of information through the system. This should tie in with the general description of the accounting system. b. A description of the equipment configuration and capabilities, and the computer language(s) 1'7hich grill be utilized in pro- gramming the processing operatikx. ** c, A description of controls to be provided over data inputs, processing, storage and outputs. d. Identification of audit trails in the automated system in- .I. cluding a description of the manner in which a particu?.ar .,. element of data that exists in the files can be traced back ill to the sowce transaction and forward to its position in a ‘E report. c. . . . 1
Industrial Fund Accounting System Design of U.S. Army Deseret Test Center
Published by the Government Accountability Office on 1971-03-18.
Below is a raw (and likely hideous) rendition of the original report. (PDF)