! -. .__ j United States .General Accounting Office i Accounting and Information I vanagement Division . I -4 September 1997 1- Civil F’hancia~ Audits Issue Mea I Active Assignments GAO/AA-97-24(3) fpMO .A Foreword This report was prepared primarily to inform Congressional members and key staff of ongoing assignments in the General Accounting Office’s Civil Financial Audits issue area. This report contains assignments that were ongoing as of August 29,1997, and presents a brief background statement and a list of key questions to be answered on each assignment. The report will be issued quarterly. This report was compiled from information available in GAO’S internal management information systems. Because the information was downloaded from computerized data bases intended for internal use, some information may appear in abbreviated form. If you have questions or would like additional information about assignments listed, please contact Gregory Holloway, Director, on (202) 512-3406; or Linda Calbom, Director, on (202) 51243341; or Gloria Jarmon, Associate Director, on (202) 512-2600; or William Hunt, Associate Director, on (202) 512-2711. L Page 1 GAO/AA-97-24(&) Contents FINANCIAL CONDlTION-GGD & GOV’TWIDE New .HIU 2: IRS FISCAL YEAR 1997 CUSTODIAL FINANCIAL STATEMENT AUDIT. 1 , EVALUATE FINANCIAL MANAGEMENT SERVICES’ @MS’) EFFORTS TO MANAGE THE FEDERAL 1 GO-S CASH. .REVIEW OF THE ELIMINATION OF INTRAGOVERNMENT AL TRANSACTIONS ON THE CONSOLIDATED 1 FlNANCIALSTATEMENTS. New . HRA 2: AUDlT OF THE INTERNAL REVENUE SERVICE’S CUSTODIAL FINANCIAL STATEMENTS FOR 1 FISCAL YEAR 1996. New , ISSUES RELATED TO TREASURY’S COMPILATION PROCESS FOR THE FY 1997 GOVERNMENTWIDE 1 CONSOLIDATED FINANCIAL STATEMENTS. New . UPDATE OF THE CONSOLIDATED AUDIT APPROACH PLAN. New . FINANCIAL STATEMENT AUDlT OF THE PUBLIC DEBT. New ,FY 97 FXNANCIAL STATEMENT AUDlT FOR CASH LINE DEM. New . RECONCI LIATION OF AGENCIES’ FUND BALANCES WITH TREASURY ACCOUNTS. New . OTHER MONETARY ASSETS. New , FY 97 GOVEIWMENlW DE CONSOLIDATED FINANCIAL STATEMENT AUDIT-ADMINISTRATION OF JUSTICE. New ,COMPLIANCE~THEFEDERALFINANCIALMANGE ACT OF 1996. FINANCIAL OPERATIONS-GGD & GOV’TWIDE . HRA 1 :STATUS ON THE NEW WASHTNGTON CONVENTION CENTER DEVELOPMENT. ,, , CONSOLIDATED FEDERAL FINANCIAL MANAGEMENT SYSTEMS SURVEY - REPORT. FINANCIAL CONplTION-HEHS ,PREPARINGFORTHEFY1997GOVERNMEMWI DE AUDJT OF MEDICARE. 4 New , HRA 5: HCFAMEDICARE FINANCIAL STATEMENT AUDIT FISCAL YEAR 1997. 4 New .FY 1997 AUDIT OF INCOME SBCURITY EXPENSE. 4 New .FY 1997 AUDIT OF VETERANS BENEFlTS AND SERVICES. 4 New J-IRA 6: FY 1997 AUDIT OF EDUCATION, TRAINING, EMPLOYMENT & SOCIAL SERVICES EXPENSES. 5 . New , FY 97 AUDlT OF HEALTH. 5 New .FISCAL YEAR 1997 GOB E AUDIT OF ACCOUNTS PAYABLE AND OTHER LIABILITIES. 5 FINANCLiL OPERATIONS-HEHS New .,SSA1997 FINANCIAL AUDIT AND RELATED WORK 5 F’INANCIAL CONDITION-RCED .REVlEW OFTHE FEDERALGOVERNME NTS FINANCIAL EXPOSURE AND SUBSIDIES RELATED TO 6 ELECTRICUTILITYACTIvI?IEs. . THE IMPACT OF THE SALE OR RESTRUCTURING OF BONNEVILLE ON BPA’S AND THE FEDERAL 6 GOVERNMENTS RESPONSIBILITIES FOR BPA’S WPPSS DEBT. .REVlEWOFGOVERNME NTWIDE ENVIRONMENTAL CLEANUP COSTS. 6 .CFS WORK ON USDA/NFC GOVE RNMENT-WIDEPAYROLL. 6 New .TRANSPORTATION EXPENSE FOR FY 1997 GO VERNMENTW’IDE FINANCIAL STATE&LENT AUDlT. 6 New , REVIEW OF GOVERNME NTWIDE ENVIRONMENTAL LIABILITIES - FY 1997. 7 New , COMMITMENT & CONTINGENCIES FOOTNOTE FOR GOVERNMENTWID E FINANCIAL STATEMENT. 7 New . ENERGY, NATURAL RESOURCES AND ENVIRONMENT, NET COSTS (BUDGET LINE ITEMS 270 AND 300) 7 FOR THE GOVERNMENT-WIDE CONSOLIDATED FINANCIAL STATEMENT AUDlT FOR FY 97. New .GOVERNMENlWIDE ASSESSMENT OF CREDJT REFORM IMPLEMENTATION. 7 FINANCIAL OPERATIONS--RCED New , GOVERNMENTWIDE LOANS RECEIVABLE AND LIABILITY FOR LOAN GURANTE ES FOR FY 1997. 8 New . AUDlT PROCEDURES FOR ENSURING PROPER USE OF OMB’S CREDlT SUBSIDY MODEL (CSM). 8 Contents OTHER ISSUE AREA WORK - CA . SMALL AGENCY PROFILES. ‘. ,_‘: .,, _). ..: : “. il,, ‘: ‘t. ,. ’ Civil Audits FINANCLC CONDITION--GGD & GOV’TWIDE ;ITIzE: HRA2:IRSFISCALY&4R1997~STODIALFINANCIALST~TEMENTAUDIT(901755) ,, KBY QUBSTlONS : (1) Are the IRS Custodial financial statements fairly stated as of and for the year ending September 30,1997? (2) Are the internal controls effective? (3) Is IRS in compliance with pertinent laws and regulations? KEY QUESTIONS : ,The Government Management Reform Act of 1994 requires GAO to audit the governmentwide consolidated financial statementsfor FY97. Becausefederal cash balances are material to the consolidated financial statements,and Treasury’scash accountsinvolve,high activity; GAO must focus on Treasury’s ability to-safeguardcashbalancesand account for cashin a complete%nd timely manner. I, ., .,_/ ‘.I’>.1:: : _.. ,,. :. ; .i;‘ __ TITLE:.REVLEWilF~E~A~~~OFINTdAGO~~NTALTRANSA~O~S'ONTHECO~SOi;iDATED FINANCIALSTATEMEN'IS(9l9049) -. -: ,, .\ KEY QFSTIONS : 1) What are the agencies’policies ,5 proceduresto account for and report intragov’tal ,:,“-_ transactions‘& %atare the auditors’ proceduresforensurkg that these.transactionsare properly eliminated? 2) HOW doesTreasury - Financial Management Services’@MS) On-line Paykent &td Collections (OPAC) system operate ~&@at are,.agencies~~processes an.d.proceduresfor using the OPAC system73) How do these processes ,, h procedures.-gect the accuracyof the consolidated financial statements and our audit? KEY QUESTIONS : Key Questions: 1) Are the fmancial management and interktlcontrols effective? 2) Are the Custodial ,.^Q .fmancial +$g@:?>$+“‘*: statements :,“.‘.,.L reliable, /L,.,~-~.~.‘,..‘,.““:*$” r‘tt free of misstatements, and presented in conformity with applicable aq$uning principles) 3).Is IRS in c.ompliance with laws and re&&tions? 1 >“,,, I. ‘il” “T ,‘:‘2.’ : “i .r! ..: -1. :, ;‘c;.<?‘. ‘7 ;. .., ‘-, ,..i TITLE: ISSUES-RELATED.TO..T~Y'SCOMPILATIONPROCESSMIRTHEN1997GOVERNMENTWIDE i ~ONSOLqDqTEDFINANCL+LSTATEMENTS(919@%,~ ,v' ., K6Y QUB!h’IO$JS ?In accordancewiththe Chief Financial Officer’s Act, Treasury will compile agency ,’ 1,) ,j~._, fmancrsl data’to&pare a & of annual consolidated fmancial statements (CFS) for FY97: GAO will subject the CFS to audit and issue‘s report on the results. 1) What stepshas Treasury taken to ensure that it compiles agencies’data timely and accurately inprepa&g’ the government&ide CFS foi FY97? 2) Has Treasury identified and addressedsystemsand procedural problems from compiling the FY96‘prototype CFS using the Adjusted Trial Balance System and the U.S. StandardGeneral Ledger? 3) Has Treasury developed procedures to &&&hat agencies understand the reporting guidelines so that Treasury correctly compiles agencies’ audited financial data? 1 Civil Audits ?TIzE: UPDATE OF THE _CONSOLIDATED AUDIT APPROACH PLAN (9l9$N)) KEY QUESTIONS : 1) What significant auditing and accounting issues wereidentified from the FY 1996 agencyaudits thatwill affect the FY 1997,agency audits and the Consolidated Financial Statements; 2) Where can GAO and the agencieswork jointly to ensureadequate audit-coverage; 3) Are the Inspector General audit plans adequatefor FY 1997 or are there gaps that GAO must address; 4) What additional expertise is needed \ and what GAO assistanceis needed? ..- : ” ‘. . .. ;. :, : m: FINANCL4LSTATEMENTAUDITOFTEEPUBLICDEBT (919106) : -’ KEY QUESTIONS : The Bureau of Public Debt (BPD) is responsible for managing andreporting essentially all ,of the federal debtand related unamortized discounf, interest.payable, and interest expense. Federal debt .will likely be the-largest single itemon the consolidated financial statementsand has never been subject to a fmancial audit GAO’s auditing responsibilities-for federal debt include supporting the opinion on the .’ : govermnentwide consolidated statements as well asrendering an opinion on BPD’s custodial financial statements. GAO must determine the reasonablenessof thereported public- debt princiijal and related Erie items ” ‘.. (unamortixed discomn, .mterest,payable,,a$dmter$$xpense) as well asreport ou%PD’s inter& cont.@s:and compliance with laws and regulations relating to these line i .^ ,- ,. : KEY ,QuESfiONS~~:rThe 1994 Government Managemeut Reform Act of 1994’(GMRA) requin%the General Accounting Office (GAO) to audit the Ey 1997’goverr&ent&de consohdated fmaricial &&ments:~TreaSury’s :; Financial Management Service (FMS), along with the Federal Reserve asits foal agent, functions as the ,. cgtiw bank‘fof tie fded;goveiriijiient. Kef~estions:,l&m$. X1)-gi. f&de&- g&&$&gp~Yi-i g7 :.5’ ‘: I_ ,I.- ;.,_ ,,. ” -, ., . .,I_. ~ I, .,._~, .....~ __Ic .. ..,. I.. ending cashbal+ces ,aren&&e in ‘a@material~respects,(2) Treasmy’s.intemal controls (includingEDP) :over disbursementsand collections are working effectively, and (3) Treasury is in compliance With s@nificant~laws and regulations related to the cash .,, line item. ,, .i ., ‘. (, ._‘. .. . ._ ;. : ‘,:. ,’ :., , : 1 m: RECONClLlATlON OF AGENCIES’ FUND BALANCES WITE TREASURY ACCOUNTS (919119) -. .- l>. @,? . ..- _.,- QUESfi~~~~u$~ep$@&& +&& G+&nt y$&g@&)t Ref&&&6F,.& $&j4,‘~A~ will g& I . the governmentwide consolidated financialstatements for PY 1997. The monthly-pro&ss’of reconcilirigthe agencies’recordswith Treasury’sfor the Fund Balances.with Treasury ticolints is ‘a key internal controXover the .G! recording of overahgovermuent and mdividual agency re@p,S and disbursements. Key,Questions:( I)-@ -1. Trea&y~~~qy+.&ry~~ effec~~~~~ e~ltfing t@; re+ptsand ~sburSements,+re,properly @ported7 (2) Are agenciesproperly and timely reconciling differences! and, if not, what is the effect-on agency and consolidated &a& statements and budgetreports? (3) What initiatives have Treasury and agencies.taken to clear differencesand improvethe recor&iation. prmes? ! ,. I.. 2 Civil Audits ?T&Ez OTHER MONETARY ASSETS (919121) KEY QUESTIONS : As part of the governmentwide tlnaticial statement audit, we will audit other monetary assets,including the U.S. gold reserves;special drawmg rights (SDRs), foreign currencies, and the U.S. reserve position in the hitemational Monetary Fund (IMF). Treasury’s OIG audits gold in custody of the Mint, and SDRs and foreign currencies in its audit of the Exchange Stabilization Fund. We will perform a moderate level of review of the OIG’s work on the gold reserves,SDRs, and foreign currencies. Gold reservesheld by the Federal Reserve Bank of New York have never been audited. We plan to perform researchand interviews to detetie the natitre~.purpose,.and use of other monetary assets,and to determine if other monetary ,&sets are properly identified, accounted for, safeguarded,and reported -, ‘i ;: mzE: Fk 97.&VERNMEhWIDE CONSOLIDATED FINANCIAL STAFMENT AUDIT-AJBMINISTRATION OF _ JUSTICE (919126) KEY QUESTIONS : The GovernmentManagement Reform Act-of~l994,requires GAO to. audit the FY 1997 govemmentwide consolidated financial statements.The’Administration of Justiceline item (approx;‘$21 billion :. for IY 96) is material and involves primarily the Departments of Justice (DOJ) andTreasury, and the Judicial branch DOJ and Treasury will be audited by ‘me Inspector~Geneials (IG).. We need to assesstheir work to render an’ophiion on the GFS. We will assessthe work of the IGs:in accordancewith FAM 650, to determine whether we can iely on it asour own. Weneed to determhm whether adequate audit-proceduresare being performed to: (1) audit the administration ofjustice function; (2) evaluate internal controls; and (3) test compliance wlth signillcatit provisions of laws and regulations. ‘-- : ‘. . ‘: i: .,$ “,<,.: .-I ,.’ ,‘>/-.t - COMPLIANCE WITH TEE FEDERAL FINANCIAL MANGEItjENT IMPROVEMENT ACT OF 1996&30) KBYQUBSTIONS i- Under theFederal F&u&l Management ImprovementAct of 1996 (FFMIA), agencies% ‘. are required to mahttain fmancial management systems that comply substantially with federalfinancial management systems requirements, applicable federal accounting standards,and the U.S; Standard General ’ Ledger@GL). FFMIArequires GAG to issue a report by 10/1/97regarding: (1) executive:agencies’ ;, compliance with the Act’s requiie;;hents;.i~g.~he~er the ~federalgovermuent’s financial stitements have ‘+ PINA&AL OPERATIONS--GGD & GOV’TWIDE v-4.“. ~~es**~& .<I.*. .v,*,>A: i:~~~~s.~~~~~:NEw~wAs~~~~~~ &&v&N cE&$~~~*~&& &i+52)- _ ,r ” _, r (i’! .,: *.,.i .Ll I..‘~ ; ‘..B’, _ij .-ii -.‘vr ; ^ ,‘.:~,:‘“;-;:‘~‘:;‘;.‘>‘;i,,‘: p ;,-+,::s*! .,‘I ‘? ‘, i KEY QUBSTIONS : (1) What are the revised construction and prcdevelopment costsand how do they compare to the budget estimates? (2):How willthe consmiction costi’be, fmanced? (3) How much &em& are generated from dedicated taxes earmarked for this project? (4) How much and’what progressh& bn made on the J&j&? :‘i .’ ,:i; ._, .. . ..* .’ 1’ .I :a’ ‘ ‘1 a, :.~ ._ : : ” .,. \ :: . ...... :‘: ‘I ..- ,, :.,. < .. .‘ “.,i^ ,, ‘. .-z> /,,,- . ..“,.’ .>, .‘ ‘:: 3 I _I Civil Audits TITLE: CONSOiIDATED FEDERAL FINANCIAL MANAGEMENi SYSTEMS SURVEY -REPORT (901754) * KEY QUESTIONS : 1) Who in Australia made the decision to move to a government-wide system? 2) Did the Australian agencies resist adopting the consolidated system? 3) How long did it take; how much did it cost, and what key lessons should be applied if the U.S. federal government wereto adopt a consolidated system? - FINANCIAL CONDITION--HEHS m: PREP-G FOR ‘hE FY 1997 GOVERNMENTWIDE AUDIT OF MEDICARE (9l902h) KEY QUESTIONS : In order to plan for the FY 1997 audit, we need to assesswhetherid&ate audit procedures ambeing performed to (1) audit government-wide Medicare expenditures and the fmancial status of the Med@are trust funds; (2) evaluate internal controls; and (3) testcompliance with significant provisions of laws and regulations related to Medicare expenditures. TITLE: ERA 5: I~CFA~~EDI$& FINANCIAL STh’EiiEiT .., AUDIT FIScAf: YEAR 1997 (919103) ,._, ., KEY QU$STT&‘+$3 : The 1994 Government Mauagement Reform Act of 1994 (GMRA) requires the General ,&counting Off&e (GAO) to audjt the FY f997 govemmentwide consofidated.financial statementsbeginning with FY,,1997. In order to monitor the Inspector General’s completion of the Health Care Finance Administration’s (HGFA) FY 1997 audit, which we plan to rely on in rendering our audit opinion on the consolidated statements, we need to assesswhetherzadequateaudit procedures are being performed to (1) audit governmentwide Medicare expenditures and the financial status of the medicare trust funds: (2) evahrate internal controls; arid(3) test.compliance ,with significant provisions of laws and regulations related to Medicare, expenditures: L ~( ~ I, ~, ,.cj;-: ; “( < .$, m: ,m 199jkIjDiT 6F’IkOME &CU@ EXPENSE (919111) : : KEY QU@TIONS : The 1994 Gove,mmentManagement Reform Act of, 1994 (GMRA) requires the General A=ouq!kg.,Qffice 6?4C9 to audit the FY 1997 governmentwide consolidated financial statements. Income Secqjty expens.es.is a material line itern of about $228 .biion. To perform,the Fy-1997.audit, we need to assess whether adequate audit procedures are being performed to (1) ,audit .governmentwideincome security ‘benefit payments; (2) evaluate hrternal controls, and (3) test compliance with significant provisions of lawsand ‘L ’ regulations related.to income security. ‘+2: s,..d: ._, ..?%;;; . ,.::!:I,q.. .,. 1 ;, : ‘+!. , -:F”; _ -, r”;,J . ../ :<. ,:. :,,;. ,_ I ,:‘,:~ ‘?” . . ..., ; ‘,,,,; ;; ;,, ‘, ‘,‘j $,? “I‘ ‘r’(.y ,, ,.: ,, -, ,“ysa -,. - ?ii-IU% FY ~~~AuDIT .,. OF VETERANS B-FITS AND SERVICES ^ ‘1 -:y.; (919114) ,, $,; ;; ..,,:I;‘;;,) ,..)I. -.,“,. bi, .i” -f,z,:.J’:: , ‘: * ,,:I .,‘. i/.’ KEY QUESTfINS,:,, The GAG’requirement to audit goverqentwide fmancialstatements under the Government Management Reform Act begins with the 1997 fiscal year. Veterans.Benefitsand Servicesis a &erial line item of about $3i:2 billion. To perform the FY 1997 audit, we need’to determine whether the VA Inspector General’s audit procedures are adequate to determine whether (1) the veteransbenefits and services line item .is fairly stated in relation to the governmentwide fmancial .statementstaken as a whole<(2) internal controls are effectively designed and operating, and (3) VA is in compliance with significant provisions of laws and regulations related to this line item. L 4 Civil Audits - l’lTI.E: HRA 6: FY 1997 AUDITOF EDUCATION, TRAINING, EMPLOYMENT 81 SOCIAL SERVICES EXPENSES (919115) KEY QUESTIONS : The Government Management Reform Act requires GAO to audit governmentwide financial statementsbeginning with fiscal year 1997. Education, Training, Employment & Social Services (ETESS) expensesis a material line item with about $50 billion of expenses. Education and HHS account for ‘i about 85% of this line item and their OIGs/IPAs are performing the audits. To carry out the FY 1997 audit, we need to assesswhetheradequate audit procedures are being performed to (1) audit govemmentwide ETESS expenses;(2) evaluate internal controls; and (3) test compliance with significant provisions of laws and’ regulations related to ETESS expenses. i, TITLE: FY97AUDIT0FEEALTIi(9&2~ * KEY QUESTIONS : The Government .Management Reform Act of 1994 (GMRA) requires GAO to audit the 1997 government wide cksoli&&d0: financial statements. The Health line item is material to those financial %-’’ statements; The.Wpartment’of Heglth and Human Services (DHHS) is expected to account’for 100 percent of the Health line item total in FY 1997. Consequently, DHHS will be the focusof our audit work (1) Is the reported balance in the Health line item fairly stated in relation to the government wide financial statements as a whole? (2) Are the interhal controlsrelated to the Health line item in place and operating effectively? (3) Is the government in compliance witbsignific~ant provisions of laws and regulations related to the Health line item? .“:‘- : ._ :” .I ,‘/’ ,;,, .:. ‘L’ ,,., : ,.. = mFw,F+ ~~CqVWj~N-E.#JPI~ OFACCOUNTSPAYABLE A&) QT@R LIAIjILITIES~919123) ,i KEY’QUESTIONS : Under provisions in the Government Management Reform Act of 1994, the General Accounting Office will audit the governmentwide consolidated financial statements for fiscal year 1997. 1 :? :i : -.Acdij;lirgpgyglk an$-c@g&L.bilities aie ded tii’iiem &t6w& &A&~7$3i8 b~onat;$j,&g6* m” . ... --. .,.... ,, ,^_”.,..I.,. ,_, . .-. $221 billion in theseaccounts at Treasury; DOD, HHS ‘at&A comprise approximately 68-‘&c&t of this line item and are the principal agenciesof our focus, To carry out the Fy 1997 audit, .weneed to assesswhether ’ ~~&qte~i&t, procedures,ateb&g perfobed to (1) audit go&rn&ri~de Accounts Payable and Other Lia@iii&& (~).iAk&t&te& .,.,‘2 ;:iX&&; ,,x&I$ / f:y-,& ,“.‘,.comp$t$F RI;?,&~~a& provi&s c&k g&l ”.i ‘);*‘..‘,:.,y regulatrons,r&t$d’~o AccountsByable ;*>,; and Other ; ,-‘I,.:. Liabilities. ‘. .:. ! - ; ., ‘-; /.i..,._.-_. ,I” i <““.. -, .: . .db..L.. / , );1,, .. ., ‘i.; ‘. 5: ~;y ‘) FINiNCIAL OPERATIONS-:HEHS ‘((:’ >>.,::*-.i$-: ,.l.J.*~&.*p$ji!i, .~l_ .;<‘.. ::‘, . .‘:(.&;~ ._:, ;: : 9; &.,: i;.c ,;:. _ ‘> .,I ‘,. .’ ..’ m ‘:.SSA~?“rANC~~~~-.~,~~.WORK,(~~i~) -.f, : ._ .,.“,*:,’ .I _,.., :‘. :, ,-.‘1, .: :.I. ‘. 1’_,:- .’ ; ! I ...r ~p~-Q~F~~(J~f.:,The,Government Management Reform~Act requires the General Accounting Office to audit .,, ii the ~&c$$+r,l99? goverq?$-!&je,~~~cial statements,.of$ich.&e Social Security Ad,ministration (SSA) ’ is a sk@icas,’ -. ,:* ~a% W&s audit wU,be p$omed by an accounting fii-: (/ ,i, .undercontract with >$he. @A$ Office ofInspectorGeneral(G@).;: ,’ .,“. ’ ,, :. ,’ ‘+ :- :’ F&XALCONDITION-RCEi ‘. .-.,: : ,,’ , ., - .. . 5 Civil Audits ‘lTI’U? REVIEW OF TEE FBDERAL GOVERNMENT’S FINANCLAL EXI’OSURE AND SUBSIDIES RELATED TO ELECTRIC UTILITY ACTIVJTIES (913805) KEiY QUESTIONS : (1)Do the unrecovered power costs, and net financing costs,still exist at the 3 Power Marketing Administration (PMA)s? (2) Do similar unrecovered power costs;.andnet financing costs,exist at Bonneville Power Administration (BPA), TVA and Rural Utility Service (RUS)? (3) What is the short-and-long-term risk of the government incurring future financial losses due to itsinvolvement in the power-relatedactivities of the 3 PMAs, BPA, TVA, and RUS? . ‘. -.-:li ‘_’ TITLE: TEE iMP&T~OF TEE St&J3 OR RESTRUCTURING OF BONNJh’ILLE 6N BPA’S AND TJ3E FED&i& GOVEjUiMENT’s REiSE’ONSiB~ FOR BPA’S WFi’SS DEBT (Pl3SO6j I(Ey QUESTIONS : 1. If BPA is sold, what would bethe fed govt’s responsibility to WPPSS, under the terms of+eproject agreements, for the $7 bill that BPAowes WPPSS2 Z..If BPA wererestructured.into 2 govt corps: a) $ich carp, if either, would inherit BPA’s responsib@es to WPPSS under.the proj agreements, L b) would ,.. such restructuring expose the fed govt to financial liabihty?, ,A ‘I ‘. ,. : ‘. -a.‘. ,.. i. ‘ITIZE: REVIEW OF GOVERNMENTWIDE ENVIRONMENTAL CLEANUP COSTS (PlPO44) ,. ;. RE,Y,QURSTlONS : ,.,^C (1),,zWhat.,,i’J is the,; magnitude and reliabiiity of env&ronmental ,hab$ties reported in federal ’ agency and’goveriiment co~atti~,fma~~~~rnen~.at8j0~96?..(2^).What,processes .dofederaI entitieshave.. ~. in place to-estimateand report theseliabilities?3() What i&e nature and locaitidn of,& government’s 1 enviromnental l@$ities?~., . j .,., I_‘.\ .; , ,I: ., .., ‘(L... ‘. (i j b ~”,, ,I ;:“:,;;c ,,‘,:I;:,: ; ‘.. ,, .1: \%? ‘-. . >‘, L.‘.. :, -, :, _.j_‘, ;’ L.(L,‘Lf’ : ‘” 1 ?ITLEk .CFS WORKdN USDA/NFC GOV@NMENT-WIDEPAYRdI;L’(PlP@&) : : : KJIY QUESTIONS : 1jkre internal controls at the Nation$Financk ‘Center (NFC) sufficient ‘to ensurethat P&YOU’& related data submitted by ~u&ag&c&ue p&&i processed& recorded?,2) D USDA’s & 96 payroll expensefairly stated? $A& i&e&,controls’over’USDA payroll’subrmss~ons’to NFC effectively designed & opemhg as intendd? 4) Is usD.A & ;ompti&& &gw&g&t ~~o&~on;~~2&.ale ;gws Br stated, (2) internal controls relating to these accounts are operating effectively, (3) is the government in compliance with significant provisions of laws and regulations related to these accounts? ” 1.. 6 Civil Audits ‘ITIUz REVIEW OF GOVERNMENTWIDE’ENVIRONMENT.AL LIARILlTIZS - FY 1997 (919113) KEY QUESTIONS : The Government Management Reform Act of 1994, which expandedthe CFO Act, requires GAO to audit the Governmentwide consolidated financial statementsbeginning with FY-1997. ‘-Our audit objectives are to determine whether: (1) FY 1997 liabilities for environmental remediation costs are fairly stated in governmenhvide fmancial statements, (2) internal controlsrelating to these liabilities are effectively designed and operating to prevent or detect material misstatements, and, (3) the government is in compliance with significant provisions of laws and regulations related to these liabilities?. - TiTLE: co MMITMENT L CONTINGENCIES FOOTNOTE FOR GOVERNMENTWJDE FINANCIAL STATEMENT ,: -.” ,i ,.. (9i9”uo) .* _, j .. KEY QUESTIGNS~: ‘Die Government ManagementReform &t of?994;,wbich expandedthe CFGAct, ,,,requires GAO to audit the government-wideconsolidated financial statements beginning wim.FY .J997: Commitments and contingencies, a footnote item. on the financial.statements, totals $6.4triBion. The fmancial ;.; .) activities of 14 agencies account for 97 percent,of.this-line:item., We wi&determine whether: (1) FY 1997 governmentwide commitment Bt contingencies are fairly stat&; (2) ,intemal controlsrelat&tg to commitment and coutingencies,are fairly stated; and (3) the government isin compliance withsignificant provisions of laws and regulations related to commitment and contingencies? ,. ., .: : 1 .?‘ ~ m: -ENERGY, NATURXL RESOURCES AND ENViRiBNMENT, NET’6OSTS (BUDGET LiNE I’fEMS 270 AND 306) ‘FOR TEEGOVERNMENTWIDE CONSOLIDATED FINANCIAL STATEMENT AUDIT FOR FY 97 (919127) .., .._^ KEY QUESTIONS :- The Government Management Reform Act of1994, &ch expgndeedWCFG Act, reqtnres GAG. to,audit the,g,overnmen:twide,consolid#ed.financial statements.beginning +h,FY >997. As part of..me Fy 1997 governtnentwide consohdated f-c&l aud&o<ur key ques6on.srelated to the Energy, Naturai. Resources8zEnvironment, Net Costs ‘(budget line items 270 and 300) are to determine whether: (1) the line ,items are fairly stated, (2) @ternal controlstre in place to prevent or detect misstatements in the line iteus, and-. (3) the,government is complying with significant provisions of laws and regulations related to t&e hne items?’ .. TLTLE: GOYEhMEFiTWIDE ASSESSMENT OF CREDIT REFORM IbfPLEMENTATION (919131) KEY QUESTIONS : The 1994 Government Management Reform Act of 1994 requires GAO to audit the FY97 consolidated fmancial statements. As part of our FY97 audit of the loans receivable and the liability for loan guaranteesline items, we need to assessthe status of credit reform implementation at the five key credit agencies -- VA, SBA, HUD, USDA, and ED. (1) How accurateand supportable are the agencies’ credit subsidy estimation processes?(2) What barriers exist to effectively implementing credit reform? and (3) What action II- plans have been developed to overcome these barriers? FINANCIAL OPERATIONS--RCED 7 Civil Audits ‘Kl’LJ? GOVERNMENTWIDE LOANS RECEIVABLE AND LIABILITY FOR LOAN GURANTEES FOR FY 1997 (919116) 1 KEY QUJ3Sl’TONS : The Government Management Reform Act, which expanded the CFO Act of 1994, requires GAO to audit the govemmentwide consolidated financial reports beginning with FY 1997. Both the Loans Receivable and Liability for Loan Guaranteesare material line items which totaled about $127.1 billion and $39.3 billion respectively at g/30/96. Our audit objectives are to determine whether (1) foal year 1997 governmentwide loans receivable and related allowance, interest income, aud subsidy expenseaccounts; and liability for loan guaranteesare fairly stated; (2) internal controls relating to theseaccounts are operating effectively; and (3) the government is in compliance with significant provisions of laws and regulations related totheseaccounta. ‘. .I.. ./ I- TITLE: AUDlT PROCEDms FOR ENSURING PROPER US? OF OMB’S CREDIT SUyIDY MOPEL (CSM-) (919133) KEY QUESTIONS : OMB’s Credit Subsidy Model (CSM) is a softwareprogram used by federal agencies to calculate’subsidy rates for credit programs as required by the Federal Credit Reform Act and Statement of -_ Federal Financial Accounting Statidatds No. 2. :Werecently completed audit work on a review of the CSM to determine if it(l), conforms with releveittprovisions of.applicable legislation and accounting standards, (2) provides reliable results, and (3) is maintained and operated under a system of adequate controls. The report also included supplemental audit steps that auditors should perform to ensure that federal credit agencies are using the CSM properly. The objective of this job is to highlight those audit proceduresin a separateproduct. 1..._.j . ,. i OTHERISSUE AREA WORK -CA .,>, .:_’ 9‘1 mzE: SMALL AGENCY PROFILES (919043) : ” KEY QU@hONS : (1) What is the universe of other’entities? (2) What htformatiou~should be included in profiles for the other entities? (3) What audit work, if any, should be’done for any of the other entities? ,. : \ ,, : 8 :z, ,. .,a. .%. ,.. ,’ --- ..- . c .
Civil Financial Audits Issue Area: Active Assignments
Published by the Government Accountability Office on 1997-09-01.
Below is a raw (and likely hideous) rendition of the original report. (PDF)