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)

         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
   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