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Approval of the Design of the Accounting System for the U.S. Army Corps of Engineers

Published by the Government Accountability Office on 1977-07-21.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

                          DCCUMENT RESUME

03L'16   - [A2f337573
                                                          U.S.
(Approval of the Design of the Accounting System for the
                                                           1977.
Army Corps cf Eugineers]. FGMSD-77-45; B-159797. Jujy 21,
2 pp.
                                                         Staats,
Report to Secretary, Department of Defense; by Elmer B.
Comptroller General.
Issue Area: Accounting and Financial Reporting (2800).
Contact: Financial and General Management Studies Div.
Budget function: Miscellaneous: Financial Management and
    Information Systems (1002).
Orgrnizaticn Concerned: Department of the Army: Corps of
    Engineers.
          The revised design of the accounting system for the
U.S. Army Corps of Engineers was approved as adequate     and in
conformance in all material respects with approved    accounting
                                                             include
principles and standards. The design and approval do not        Corps
                                                       of  the
the Centralized Payroll and Leave Accounting System
because the Department of Defense plans to develop and submit
for approval a single standard civilian payroll system ofwhich
                                                             the
will encompass Corps civilian personnel. The adequacy
autom.tic data processing aspects were evaluted as to     internal
                                                            with the
controls, audit trails, data integrity, and consistency
accounting specificaticns. Findings/Conclusions:     The  accounting
system of the Corps is required to comply with the Uniform
System of Accounts prescribed by the Federal Power Commission. simple
Inasmuch as the Corps does not depreciate the cost of fee 2 of
land, GAO has agreed to accept this deviation   from  title
the GAO Policy and Procedures Manual for Guidance of FederalTo
Agencies to allow the Corps to ccnform with FPC pol cy.
maintair an approved status, planned changes   in the  accounting
                                                               if
system design should be discussed with GAO personnel and, Corps
determined to be significant, submitted   for approval.
internal auditors should periodically review the accounting
 system in operation to be sure that it is operating as
 prescribed. (SC)
               pain12`               eCOMPRQTLL1    GUNCRAL Of TH UNI          o
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                         @                         WHINASITON. o.C. WoS"




               B-159797                                        JUL 2t 197


               The Honorable
               The Secretary of Defense

                     Attention:      Assistant Secretary of Defense
                                          (Comptroller)

              Dear Mr.       Secretary:

                    It is my pleasure to approve the revised design of the accounting
              system for the U.S, Army Corps of Engineers, submitted to us on June 30,
              1977, as being adequate and in conformity in all  material respects with
              its approved accounting principles and standards.   The design and our
              approxal do not include the Centr0li.!ed Payroll and Leave Accountin-
              System of the Corps because of Department of Defense plans to develop
              and submit for approval a single standard civilian payroll system which
              -will encompass Corps civilian personnel.

                   The accounting system of the Corps is required to comply with the
(-9           Uniform Syste-. of Accounts prescribec by the Federal Fc:.'er Co-iiscirn
              (FPC). Title 2 of the GAO Policy and Procedures .lanual for Guidance of
              Federal Agencies provides f-)r the depreciation of fee si-iole Bla:d costs.
              whereas FPC accounting policy does not. Inasmuch as the Corps dOeS not
              depreciate the cost of fee sic-le land, we have agreeJ to accept ,:'
              deviation from Title 2 to allow the Corps to conform with FPC policy.

                   In evaluating the syster design, we looked at the automatic datm
              processing aspects primarily to determine their adequacy as to irLernal
              controls; 'audit trails, data integrity, and consistency with the account-
              ing specifications.

                   To maintain an approved status, planned changes in the accounting
              system design should be discussed with our representatives and, if
              necessary, sub-mitted for approval.

                   We suggest that your internal auditors periodically review the ec-
              counting system in operation to be sure that it is operating as prescribed.
              At some future date we will exemine selected aspects of the system and
              advise you is to whether it-is functioning effectively and ia accordance
              with the approved design.




  (~~.
  /ยทยท,   -,
         We commend Lhe Corps for developing a revised accounting system
    that will ir.prove its ability to direct its various operations and
    fInancial affairs.

                                     Sincerely yours,


                              SIGNED ELMER B. STA.,TS
                                     Comptroller General
                                     of the United States




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