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![handle is hein.gao/gaobaayfx0001 and id is 1 raw text is:
DOCUMENT RESUME
07682 - [C3008128]
Kore Effective Action Is Needed on Auditors' Findings: Millions
Can Be Collected or Saved. FGNSD-79-3; B-160759. October 25,
197 . 30 pp. + 5 appendices (17 pp.).
Report to the Congress; by Elmer B. Staats, Coptrcller General.
issue Area: Internal Auditing Systems: Audit Reports Quality and
Followup (203).
Contact: Financir-l and General management Studies Div.
Budget ?-'Htr iscellaneous: Financial management and
Infor -i-(ln Systems (1002).
orqanizatioz Concerned: Office of management and Budget.
Congressional Relevance: House Committee on Armed Services;
Senate Committee on Armed Services; Congress.
Authority: CompreheLsive Employment and Training Act of 1973
(P.L. 93-203; 87 Stat. 850; 29 U.S.C. 841). Emergency
Employment Act of 1971 (P.L. 92-54; 85 Stat. 146; 42 U.S.C.
4871). Federal Claims Collection Act (31 U.S.C. 951).
Elementary and Secondary Educaticn Act. =4 C.T.R. 102.
B-163922 (1978). ORB Circular A-73. GAO Policy and
Procedures Manu4l, title III, sec. 40.
Under various programs, the Government relies cn audit
as the basic tool for preventing unauthorized expenditures and
seeinq that the intent of the Congress is carried out. GAO and
the Office of Management and Budget (CN) have formulated
requirements for managers to take prcmjt action to decide what
should be done and to complete corrective measures, as
necessary, on auditors' findi!ngs. Findings/Conclasions: The
lack of a good system for resolving auditors@ findings could be
very costly. An examination disclosed that $4.3 billion in audit
findings contained in nearly 14v000 audit reports of 34 agencies
had not been resolved. About 80% of this amount involved
potential recoveries from grantees and contraztors, and the
remainder involved potential savings in operating costs. Some of
the findings were unresolved for as long as 10 years. Under the
present system, the officer who has e final word on settlement
of audit findings is usually an administrator of the program
that was audited. These officialb have given resolution cf audit
findings low priority, often decide rct to pursue recoveries
without adequate explanation or legal advice, and often do not
aggressively seek collection or savings needed for final
resolution. Few agencies have adequate systems for tracking and
resolving audit findings, and many agencies have not followed
OMB policy to istablish tiaeframens for responding -o audit
recomaendations. Recommendaticus: Agencies having audit staffs
should establish the following system for resolving audit
findings: require agency auditors to keep accurate records oZ
findings until a final disposition has been made; give prcgram
administrators 6 months to reach dec1icna on the amount due
from qrantees or contractors as the result of audit findings 4nd](ViewImageLocal?handle=hein.gao/gaobaayfx0001&div=1&collection=&method=preview&ext=.png&size=3)