Financial Management: Strong Leadership Needed to Improve Army's
Financial Accountability (Chapter Report, 12/22/93, GAO/AIMD-94-12).

The Army's financial accountability for billions of dollars in resources
is seriously undercut by weaknesses in its disbursement systems,
inadequate controls over computer processing of financial and logistics
information, and limited progress in Defense Department (DOD) efforts to
beef up financial management.  Overall, the lack of sustained DOD
leadership has impaired the Army's ability to strengthen financial
accountability.  The Army's budget execution information could not be
relied on to ensure Army compliance with disbursement limits set by law.
Adequate controls were not always used to support recorded
disbursements for the Army Material Command.  General controls over
computer processing gave little assurance that financial data were
accurately processed or that automated systems and data were secured.
DOD's efforts to improve Army financial management information have been
weakened by vacancies in the position of the DOD Chief Financial
Officer.  Also, DOD lacks a comprehensive plan to guide the assessment
of financial management personnel qualifications or other Army efforts
to improve financial management.  In addition, the roles and
responsibilities of the various DOD organizations carrying out the
Army's financial management operations have not been spelled out
clearly.

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

 REPORTNUM:  AIMD-94-12
     TITLE:  Financial Management: Strong Leadership Needed to Improve 
             Army's Financial Accountability
      DATE:  12/22/93
   SUBJECT:  Financial management systems
             Accountability
             Federal agency accounting systems
             Internal controls
             Accounting procedures
             Data integrity
             Information processing operations
             Records management
             Budget outlays
IDENTIFIER:  DOD Corporate Information Management Initiative
             Defense Business Operations Fund
             CIM
             Standard Operations and Maintenance, Army, and Research and 
             Development System
             Army Commodity Command Standard System
             
************************************************************************

We regret that the full text of this item is presently unavailable.

See the GAO FAQ - Section 2.0 for printed copy ordering information.
The FAQ is automatically retrieved with all WAIS search results or 
can be obtained by sending e-mail to: [email protected]