NCJ Number
68028
Date Published
1979
Length
20 pages
Annotation
A GENERAL ACCOUNTING (GAO) SURVEY OF 18 ACCOUNTING STATIONS WITHIN HEALTH SERVICES ADMINISTRATION IDENTIFIED WEAKNESSES IN INTERNAL CONTROLS OVER CASH RECEIPTS AND EXPENDITURE TRANSACTIONS.
Abstract
QUESTIONNAIRES WERE USED TO IDENTIFY PROBLEM AREAS AND WERE THE BASIS FOR INTERVIEWS WITH RESPONSIBLE ACCOUNTING STATION OFFICIALS. WHEN INADEQUATE FINANCIAL CONTROLS WERE INDICATED, GAO TESTED SELECTED TRANSACTIONS TO VERIFY THE EXISTENCE OF WEAKNESSES. MANY ACCOUNTING STATIONS DID NOT PROPERLY CONTROL COLLECTIONS, IMPREST FUNDS, ACCOUNTS RECEIVABLE, OR DISBURSEMENTS. SPECIFIC PROBLEMS INCLUDED DELAYS IN DEPOSITING FUNDS, FAILURE TO RECORD COLLECTIONS AT A CENTRAL POINT, AND DUTIES OF PERSONS HANDLING ACCOUNTING FUNCTIONS NOT BEING ADEQUATELY DIVIDED TO ASSURE CONTROL OVER THE STATION'S CASH. SOME STATIONS DID NOT USE PRENUMBERED RECEIPTS WHILE OTHERS FAILED TO KEEP THESE FORMS IN A SECURE PLACE, THUS VOIDING THEIR FUNCTION. AT SEVERAL STATIONS, IMPREST FUNDS WERE NOT REVIEWED PERIODICALLY TO PREVENT LOSS OR MISUSE. AT 12 STATIONS ACCOUNTING RECORDS WERE NOT USED TO FOLLOWUP OVERDUE ACCOUNTS. THE ACCOUNTING STATIONS GENERALLY HAD GOOD CONTROLS TO PREVENT OVERPAYMENTS AND DUPLICATE PAYMENTS, BUT OVER HALF DID NOT FOLLOW SCHEDULING PROCEDURES TO ENSURE THAT BILLS WERE PAID ON TIME. FAILURE TO DOCUMENT LOST DISCOUNTS WAS ALSO A PROBLEM. GAO IDENTIFIED PROBLEMS AT THE HEADQUARTERS LEVEL WHICH COULD HAVE PREVENTED SOME INTERNAL CONTROL WEAKNESSES. THE STATIONS NEED SPECIFIC INSTRUCTIONS ON HANDLING RECEIPT AND DISBURSEMENT TRANSACTIONS AND REQUIRE REGULAR AUDITS TO DETECT WEAKNESSES. MOST HAD NOT BEEN AUDITED FOR 3 YEARS. ALL RESPONSIBLE OFFICIALS ASSURED GAO THAT CORRECTIVE ACTIONS WOULD BE TAKEN. A SUMMARY OF WEAKNESSES AT INDIVIDUAL STATIONS IS APPENDED. (MJM)