Grant Auditing: A Maze of Inconsistency, Gaps and Duplication that Needs Overhauling : Report to the Congress

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U.S. General Accounting Office, 1979 - Auditing - 35 pages
 

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Page 34 - Department of Agriculture Department of Commerce Department of Defense Department of Health, Education, and Welfare . Department of Housing and Urban Development . . Department of the Interior Department of Justice Department of Labor Department of State Department of Transportation Department of the Treasury Atomic Energy Commission Environmental Protection Agency General Services Administration National Aeronautics and Space Administration Veterans...
Page ii - ... $3.7 billion in Federal funds was not audited by or on behalf of the Federal agencies. This test was not based on a statistical sample, since the information to develop such statistics is not available. However, if what we found is typical of the approximately $240 billion in grants awarded during the period, it is possible that the Government did not audit or have audited nearly $192 billion of these grants. Moreover, most of these grantees did not have audits made by their own auditors that...
Page iv - We have given the matter much thought and recommend the following action to bring about a logical and orderly system for auditing Federal grants. First, we recommend that the Congress amend the Intergovernmental Cooperation Act of 1968 to prescribe standardized audit requirements which would be applicable to all Federal grants. The amendment should rescind existing laws for regularly scheduled audits of individual grants by particular organizations and allow Federal agencies flexibility in judging...
Page 31 - ... programs. He urged them to upgrade audit planning and to : Use their audit plans as a basis for making greater efforts to improve interagency cooperation on audits, to increase Federal coordination with State and local auditors, and to increase reliance on audits made by ethers.
Page 21 - ... deficiencies in the scope of their work from a Federal viewpoint, these audits would shed some light on the adequacy of the grantees' internal controls and accounting procedures. The principal reason Federal agencies cited for not auditing all grants or reviewing audits made for grantees by their auditors was a shortage of Federal audit resources. Federal auditors said that they do not have enough auditors to regularly audit all their grant recipients. Even though they know that grantees are...
Page ii - Unnecessary costs also can result from duplication of effort and from performing audits too often of grants too small to warrant more than an occasional audit. Also, numerous audits unnecessarily disrupt the grantees
Page 22 - ... resources. Federal auditors said that they do not have enough auditors to regularly audit all their grant recipients. Even though they know that grantees are not making audits and question the usefulness of the audits that grantees secure, they do not have the resources to followup with their own audits. Although Federal officials cite the lack of audit resources as a major reason for gaps in audit coverage, conditions might be significantly improved if the agencies made better use of their existing...
Page ii - ... Moreover, most of these grantees did not have audits made by their own auditors that would serve Federal needs. Of the 73 grant recipients we reviewed, 17 either were not audited at all, or suffered such major gaps in audit coverage that we could not consider them audited. Of the remaining 56 audited, 51 (over 90 percent) received audits that provided only partial or no insight into whether Federal funds were properly spent. For the most part, these audits were made to satisfy State or other...
Page 5 - Budget; and the agency officials responsible for PPBS in the Department of Health, Education and Welfare (HEW) ; Department of Housing and Urban Development (HUD) ; and the Office of Economic Opportunity (OEO). Enthoven outlined the past experience of the Department of Defense with systems analysis. Describing systems analysis as "quantified common sense," he gave examples of its use and discussed the organizational arrangement necessary for optimum results.
Page i - ... billion in 1979. Along with this increased fund ing has been the significant increase in the number of Federal programs, approximately 1,100 at the current time. The Congress and the Executive Departments rely on audits of financial transactions and compliance with applicable laws and regulations as the basic control to see that these funds are spent as Congress intended and to prevent loss of funds from fraud and abuse. Because Federal assistance programs and grants continue to grow in number...

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