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DOCUMENT RESCME
00286 - [A08915081
[Contrcls and Accountability for checks Returned to Treasury's
Disbursing Centers]. FGHSD-76-56: B-112924. march 1, 1977. 9 pp.
Report to Secretary, Department of the Treasury; by D. L.
Scantlebury, Director, Financial and General Management Studies
Div.
Issue Area: accounting and Financial Reporting (2800).
Contact: Financial and General management Studies Div.
udget Function: miscellaneous: Financial Management and
Information Systems (1002).
Congressional Relevance: House Committee on Banking, Currency
and Housing; Senate Committee on Banking, Housing and Urban
Affairs.
Authority: Budget and Accounting Precedures Act of 1950.
Treasury Fiscal Requirements Manual, ch. 7000. 4 Treasury
F.BR.. 7030.10. 2 GAO 12.2. Treasury's Division of
Disbursement Procedures manual, Fart V, sec. 5110.
A review was conducted of the Department of the
Treasury's controls over checks on hand that were returned as
undelivered or were withdrawn from deliveLy after preparaticn.
Findings/Conclusiohs: During fiscal year 1976, seven Treasury
disbursing centers were holding about 530000 negotikable checks
(about $17.7 million) i ithout adequate safeguards. About 41,000
of these undelivered checks were at least 6 months old. Because
Treasury did not cancel the checks Immediately, Federal agencies
have been precluded from making timely adjustments to their
accounting records. Several veaknesses were noted in internal
controls over the proL.essing of returned checks: mail containing
checks was not always opened in the presence of cthe- employees
as required; checks not under accounting control were placed in
open desks accessible to anyoaie; and uL-ancelled checks were
processed without adequate controls. Treasury's problems in
controlling returned checks could be minimized if such checks
were cancelled shortly after receipt. Recommendations: The
secretary of the Treasury should: provide for cancellation of
returned checks upon receipt by Treasury, and notify Federal
agencies when their returned checks are cancelled; and improve
controls over returned and withdrawn checks that are still
negotiable by adequately separating duties of employeas
processing checks, restricting access to checks to those who
have a need to handle them, and maintaining proper
accountability over the checks. (RRS)](ViewImageLocal?handle=hein.gao/gaobaabvb0001&div=1&collection=&method=preview&ext=.png&size=3)