About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline

GGD-80-67 1 (1980-06-09)

handle is hein.gao/gaobabaqf0001 and id is 1 raw text is: 



UNITED STATES GENERAL ACCOUNTING OFFICE
        WASHINGTON, D.C. 20548


5~4>Z~

     112. Ii


GDENRALI GOVRNM WT
    DIVISION


B-198500


Mr. Norman A.
Commissioner,
  Industries,
Department of


Carlson
Federal Prison
Inc.
Justice


Dear Mr. Carlson:


Subject:


Amprovements Needed in the Management of
Federal Prison Industries' Factorie7
(GGD-80-67)


     During our recent examination of the fiscal year 1979
financial statements of Federal Prison Industries, Inc.
(FPI), we found a number of problems which we believe
should be corrected. Deficiencies exist in pricing prod-
ucts, determining manufacturing costs, purchasing materi-
als, maintaining inventories, collecting accounts receiv-
able, authorizing and reimbursing travel, and internal
reporting of financial information. These problems, which
are discussed in detail below, affect the efficiency of
FPI's operations and its net profit.

     Our work and the work of Department of Justice and
FPI internal auditors showed that the problems often
occurred because FPI factory staff did not comply with
established policies and procedures. In some instances,
however, policies and procedures did not provide suffi-
cient guidance for factory staff to carry out their activi-
ties. Further, we believe that many of the problems are
attributable, in large part, to inexperienced personnel.

     We conducted our review at the following FPI loca-
tions:


(260021)


JUNE 9, 1980


I tlllII11 1 111 111
   112511

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Already a HeinOnline Subscriber?

profiles profiles most