Financial Management: Customs Did Not Adequately Account For or Control
Its Accounts Receivable (Chapter Report, 11/08/93, GAO/AIMD-94-5).

Congress, other federal decisionmakers, and the public have been
receiving inaccurate information on the amount of duties, taxes, user
fees, and fines and penalties owed to the federal government or the
amount that the U.S. Customs Service will be able to collect.  Customs'
reported gross accounts receivable was unreliable largely because it
included unsubstantiated and erroneous claims and omitted some valid
receivables.  Some accounts receivable were recorded at a gross amount,
while others were recorded at a net amount--that is, gross receivables
adjusted by an allowance for uncollectible status.  In addition,
Customs' methodology for estimating the collectibility of its accounts
receivable was incorrect.  GAO estimates that $358 million, or nearly 90
percent, of the valid receivables in its sample as of June 1992 was
uncollectible.  Moreover, Customs did not effectively prevent or
minimize delinquent accounts receivable.  Customs' collection efforts
were hampered by missing documentation needed to sustain claims against
importers and sureties and a failure to sanction some delinquent
importers.  Customs' inability to generate reliable information on its
accounts receivable could harm both its own collections as well as
financial reporting accuracy.

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

 REPORTNUM:  AIMD-94-5
     TITLE:  Financial Management: Customs Did Not Adequately Account 
             For or Control Its Accounts Receivable
      DATE:  11/08/93
   SUBJECT:  Financial management systems
             Federal agency accounting systems
             Government collections
             Customs administration
             Financial management
             Accounts receivable
             Collection procedures
             Accounting procedures
             Financial records
             Accountability
IDENTIFIER:  Customs Service Automated Commercial System
             Customs Service Automated Management Information System
             
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