Financial Management: Education Faces Challenges in Achieving Financial Management Reform. Testimony before the Subcommittee on Oversight and Investigations, Committee on Education and the Workforce, House of Representatives.Report as inadecuate




Financial Management: Education Faces Challenges in Achieving Financial Management Reform. Testimony before the Subcommittee on Oversight and Investigations, Committee on Education and the Workforce, House of Representatives. - Download this document for free, or read online. Document in PDF available to download.





This report provides a fiscal analysis of the Department of Education's 1999 financial audit results. It focuses on the relationship between the audit findings and the potential for waste, fraud, and abuse, and examines the status of an ongoing study of the Department's grantback account. It describes the ongoing accounting problems that have plagued the agency since 1998, such as high turnover and limitations associated with a new accounting system that was installed in 1998. It states that Education was unable to provide adequate support for about 800 million dollars reported in the September 30, 1999, net-position balance in its financial procedures; that auditors were unable to determine whether beginning balances for accounts payable and related accruals were accurate; and that Education was able to improve the opinion it received on its financial statements for fiscal year 1999. The auditors' report for fiscal year 1999 discussed weaknesses in the financial reporting process, inadequate reconciliations of financial accounting records, and inadequate controls over information systems. Furthermore, the auditors reported that the Department was not in compliance with three laws and regulations. The report concludes that the agency is plagued by serious internal control and system deficiencies that hinder its ability to achieve lasting financial-management improvements. (RJM)

Descriptors: Educational Finance, Elementary Secondary Education, Finance Reform, Financial Audits, Financial Problems, Money Management

For full text: http://www.gao.gov.









Author: Jarmon, Gloria L.

Source: https://eric.ed.gov/?q=a&ft=on&ff1=dtySince_1992&pg=9808&id=ED440437







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