Financial Management: Customs' Self-Assessment of Its Internal Control
and Accounting Systems Is Inadequate (Letter Report, 10/27/93,
GAO/AIMD-94-8).

Because of widespread material internal control and accounting system
weaknesses, the U.S. Customs Service has little guarantee that the
objectives of the Federal Managers' Financial Integrity Act have been
achieved and its self-assessments have not yielded vital information
that top management needs to control costs and improve operations.
Under the act, agencies are required to disclose annually the condition
of their internal control and accounting systems.  Customs is one of 10
pilot agencies required to prepare financial statements and have them
audited by June 30, 1993.  Although Customs reported many material
weaknesses, it did not identify, disclose, and correct serious
deficiencies in its internal control and accounting systems.  GAO found
major weakness in five areas: seized property, revenue, budget, fixed
assets, and procurement. Continual top management involvement is
essential to strengthening Customs operations and accurately reporting
material weaknesses to the Secretary of the Treasury.

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

 REPORTNUM:  AIMD-94-8
     TITLE:  Financial Management: Customs' Self-Assessment of Its 
             Internal Control and Accounting Systems Is Inadequate
      DATE:  10/27/93
   SUBJECT:  Assets
             Federal agency accounting systems
             Internal controls
             Financial management systems
             Accounts receivable
             Data integrity
             Financial disclosure reporting
             Reporting requirements
             Inventory control systems
             Federal property management
IDENTIFIER:  Customs Service Financial Management Improvement Plan
             Customs Service Information Systems Plan
             Customs Service Automated Commercial System
             Customs Service Weapons Inventory Control System
             Customs Service Fines, Penalties, and Forfeitures Module
             Customs Service Asset Information Management System
             
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