GOVERNMENT NEEDS TO DO A BETTER JOB OF COLLECTING AMOUNTS OWED BY THE PUBLIC

• NCJ Number: 66084
• Author(s): ANON
• Date Published: 1978
• Length: 53 pages
• Corporate Author: US Comptroller General
• Sale Source: Azimuth Inc.
• Language: English
• Country: United States of America
• Note: THERE IS A CHARGE FOR MORE THAN ONE COPY REPORT TO THE CONGRESS

Annotation

RESULTS ARE REPORTED FROM A GENERAL ACCOUNTING OFFICE REVIEW OF ACCOUNTS RECEIVABLE FOR 12 FEDERAL AGENCIES.

Abstract

PROMPT COLLECTION ACTION ON AMOUNTS THE PUBLIC AND OTHERS OWE THE GOVERNMENT, AMOUNTING TO $14.6 BILLION IN 1977, HAS BEEN HINDERED BY INACCURACIES IN ACCOUNTING FOR AND REPORTING OF ACCOUNTS RECEIVABLE, LACK OF PROMPT AND AGGRESSIVE COLLECTION ACTION, LOW OR NO INTEREST CHARGES BEING IMPOSED ON DELINQUENT ACCOUNTS, AND INADEQUATE PROVISIONS OR NO PROVISIONS FOR UNCOLLECTIBLE ACCOUNTS IN MOST AGENCIES. THE FINDINGS INDICATE THAT FEDERAL MANAGERS NEED TO STRENGTHEN FINANCIAL MANAGEMENT GENERALLY. EFFORTS SHOULD BE MADE TO ENSURE THAT THE FINANCIAL STATEMENTS SUBMITTED TO THE DEPARTMENT OF THE TREASURY FOR CONSOLIDATION ARE COMPLETE AND ACCURATE, TO OBTAIN THE COMPTROLLER GENERAL'S APPROVAL OF ACCOUNTING SYSTEMS, AND TO ENSURE THAT AN ADEQUATE BUT BALANCED PORTION OF INTERNAL AUDIT RESOURCES ARE DEDICATED TO REVIEWING FINANCIAL STATEMENTS SUBMITTED TO THE DEPARTMENT OF THE TREASURY. THE SECRETARY OF THE TREASURY SHOULD REVISE THE TREASURY FISCAL REQUIREMENTS MANUAL INSTRUCTIONS FOR PREPARATION OF FINANCIAL STATEMENTS SO AS TO REQUIRE ACCOUNTS RECEIVABLE NOT DUE WITHIN A YEAR OR LESS TO BE CLASSIFIED AS NONCURRENT ASSETS, UNRECOVERED BENEFICIARY OVERPAYMENTS TO BE REPORTED AS ACCOUNTS RECEIVABLE AND IDENTIFIED AS SUCH, AND CONSIDERATION TO BE GIVEN TO PAST COLLECTION EXPERIENCE IN COMPUTING AN ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS. THE SECRETARY SHOULD ALSO EMPHASIZE TO GOVERNMENT AGENCIES THE NEED TO REVIEW THEIR FINANCIAL STATEMENTS FOR COMPLETENESS AND ACCURACY BEFORE SUBMITTING THEM FOR CONSOLIDATION. THE OFFICE OF MANAGEMENT AND BUDGET AND THE TREASURY AGREED WITH THE RECOMMENDATIONS AND COMMENTED ON RECENT TREASURY ACTIONS TO REQUIRE GOVERNMENT AGENCIES TO CHARGE INTEREST ON MANY DELINQUENT ACCOUNTS. TABULAR DATA AND LETTERS OF RESPONSES TO THE REPORT ARE CONTAINED IN THE APPENDIXES. (AUTHOR ABSTRACT MODIFIED--RCB)