IA Ji;ly 1970, we Teouesi- 4 the Cc~2Lssionc- L Es co,mments on our draft report on the iiilC--V'clllSL.r8 needed Ln the financia; management and the ze?o-rsing on the Xetropoil3n Area Sanitary Sewage W~rlcs Fund i.htcmac InterccpEor Sewer). IA our draft reporE, we ~L-oposed chat the Commissioner require tha;-. 2. r-, ;ccos~tL~g iLse procedures Se irxpxved so as to accurately record, within the formal accounts of ihe Interceptor FUnG, the assets, Iiabilities, i?cvci-..LLe.s &rid aperatlri, exp3:iisas on the accrusi basis. With respect to Ejy‘* -2.C. 'Sanitary Sewage Works F’itild, ‘b/e proposed that he require thas ./ Ye also proposed that txxigetak-y ti--'-&3. reported to the Congress in- c,..ide a full tiisclosure c2 the reSi:lts of the Tnterce?torss operations and of the financial. condition of the Interceptor Fund, Additionally, -we Tnposed chat such data include a ;^a;* and loan repayment analysis showing historical rates, operating ci;sts, and loan repayments as weil as f~~~~~-re years' pyoj eyc;d rates p estimated operating costs, and esti- mk.Eed :OaA repaymenns through the final loan-repayment year. 5y letter dated September l7, 1570, tile Di.rector, Office of Budget and &ecative p&nage::;eLT'c , District of CoLu&ia Government, commented on 3Ur dra;‘t report. 3~ scated tFLat, subsequent to the completion of our review , action had been take:: to revise accoun+= ---ng procedures within the 323artment i of Sanit-- aLy Engineering so as to record, In the accounts of zhe I;~,terceptor Fund and the 3 YC " Sanitary Sewage Works Fund, operating 2os';s which will be ir; agreement wLth L+s-~ailea cost account data. Tne Director stated also that, as sma as possible after the resubr;.,s- s j, 0 L,*L to the Comptroller General of the 3istricz's statement of accounting . . iorincipies ahd standards, the District wilP revise procedures to account for the Interceptor Fund so that statements of financial condition and operating results may be prepared. By letter dated >krch 15, 1971, :hc Comptroller General advised the Chai rinxm , Subcommittee on the Districi of Columijia, Committee on Appropria- tions, United States Senate, tTx2-c the 1Dlstri.c: had substantially completcti a statement of accouilting p-rinciples and st;r;dards, The Comptroller General also advised the Chairman that, after the District's statement has been approved, the General Accounting Office intends to cooperate with the Dis- trict ln the preparation of an accou;ltlng system design. The Comptroller General stated that the design su'xnission must demonstrate that (1) the syste.2 will be able to produce the firancial information needed by managc- men: (2) an appropriate account structure has been developed, and (3) tllle planned accounting processes will result in the timely recordation of accurate and complete information, In view of the above, we do ilot plan to pursue our assignment further at ihLS particular time. When the District has had a revised accounting system in operation, we will consider again reviewing the effectiveness of t'ne financial management and reporting aspects of tne Interceptor. We wish to acknowledge the cooperaeion extended to our representatives llllllllll durir-g the performance of the review of the Interceptor. Sincerely yours, -.. Assistant Director The Honorable Graham W. Watt Assistant to the Commissioner of the District of Columbia
Financial Management and Reporting on the Metropolitan Area Sanitary Sewage Works Fund
Published by the Government Accountability Office on 1971-06-30.
Below is a raw (and likely hideous) rendition of the original report. (PDF)