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B-115398.01 1 (1978-12-14)

handle is hein.gao/gaobachls0001 and id is 1 raw text is:                      WASHINGTON. L), L~d    K '-.  .~     2



  B-115398.01                            9ECI4197



The Honorable

The Secretary of the Interior

Dear Mr. Secretary:

     Enclosed is a copy of our May 26, 1978, report to the
congress on the Status. Progress, and Problems in Federal
Agency Accounting During Fiscal Year 1977 (FGMSD-78-24).
As you know, the Comptroller General is required by the
Budget and Accounting Procedures Act of 1950 to approve
executive agency accounting systems when he finds them to
be in conformity with the-principles, standards, and related
requirements which he prescribes. Comments pertaining to the
status of Department of the Interior accounting'systems
appear on pages 6. 16, 17, and 77.

     We have commenced preparing our report for fiscal year
1978 and note that neither of the two accounting systems
you had scheduled for approval during the past year were
submitted to us.

     With the transfer of the power agencies to the Depart-
ment of Energy and the transfer of the Mining Enforcement
and Safety Administration to the Department of Labor, the
number of unapproved accounting system designs in your depart-
ment has been reduced to four. While our staff is hopeful
that one of these, the system of the Office of the Secretary,
can be approved in the next few months, the outlook for the
other three is not favorable. The target dates for approval
of the systems of the National Park Service. the U. S. Fish
and Wildlife Service, and the Bureau of Outdoor Recreation
(now Heritage Conservation and Recreation Service) have con-
tinued to slip over the past several years.

     We believe your personal support is necessary to get
these three accounting-systems redesigned to qualify for
our approval. Such approval will give you assurance that
these systems will be (1) less susceptible to fraud and
(2) more responsive to managers' needs. Without an adequate
financial management system, it is difficult to attain pro-
gram objectives at the least cost to the taxpayers.

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