NCJ Number
104826
Date Published
1986
Length
21 pages
Annotation
This General Accounting Office report on a fiscal 1985 financial audit of Federal Prison Industries, Inc., (FPI) addresses internal accounting controls, compliance with laws and regulations, and financial statements.
Abstract
The study disclosed a condition that could result in errors or irregularities in amounts material to future financial statements, which may not be detected within a timely period. Reconciliations of the cash accounts with the Department of the Treasury were not performed monthly as prescribed by FPI's procedures. The failure to perform periodic reconciliations resulted in an adjustment to the financial statements, decreasing cash by $471,887 at year's end. The Commissioner of Federal Prison Industries, Inc., should direct the Controller to identify the cause of the difference in cash balances between FPI and Treasury and perform a monthly cash reconciliation. With one exception, FPI complied with the terms and provisions of laws and regulations for the transactions tested that could have materially affected FPI's financial statements. There is some question as to whether FPI remained within the congressionally established limit on FPI's administrative expenses. Financial statements are provided.