Financial Audit: Examination of Customs' Fiscal Year 1993 Financial
Statements (Letter Report, 06/15/94, GAO/AIMD-94-119).

An audit of the U.S. Customs Service reveals that the agency cannot
fully account for tons of illegal drugs and millions of dollars seized
from drug dealers, adequately control the use of its operating funds,
and ensure that importers are complying with laws to ensure fair trade.
During fiscal year 1993, the U.S. Customs Service took several
meaningful steps toward addressing recommendations resulting from GAO's
audit of the fiscal year 1992 statements. Most importantly, Customs
began a program to reliably measure compliance with trade laws;
developed a methodology for accurately reporting its $900 million in
accounts receivable; and, for the first time, did a nationwide inventory
of its seized assets. More substantial improvements, however, will be
needed to develop meaningful and reliable financial management
information and establish a sound internal control structure.
Consequently, GAO is unable to express an opinion on Customs' fiscal
year 1993 Principal Financial Statements. This report highlights
Customs' serious financial management and control problems and describes
the harmful effect of these problems on Customs' ability to carry out
its trade and enforcement missions. GAO also describes Customs' efforts
to correct the problems and makes recommendations to help Customs
resolve these problems and strengthen its financial management
operations.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  AIMD-94-119
     TITLE:  Financial Audit: Examination of Customs' Fiscal Year 1993 
             Financial Statements
      DATE:  06/15/94
   SUBJECT:  Customs administration
             Financial statement audits
             Inspection
             Internal controls
             Federal agency accounting systems
             Financial records
             Federal property management
             Accountability
             Reporting requirements
             Data integrity
IDENTIFIER:  Customs Service Property Information Management System
             North American Free Trade Agreement
             NAFTA
             Customs Service Automated Manifest System
             Customs Service Automated Commercial System
             Treasury Enforcement Communications System
             Customs Service Property Tracking System
             National Performance Review
             
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