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 STATD .4 v 5 .r~~~ @ 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. (~~. /··, -, 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 Q
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)