Financial Management: First Financial Audit of Customs Revealed Serious
Problems (Testimony, 10/05/93, GAO/T-AIMD-94-3).

The first-ever financial audit of the U.S. Customs Service revealed
serious financial management problems and identified related operating
problems that threaten the efficiency and the effectiveness of Customs
programs.  GAO was unable to express an opinion on the reliability of
Customs' fiscal year 1992 financial statements because of the lack of
critical financial information, inadequate financial systems and
processes, and an ineffective internal control structure.  Internal
controls failed to effectively safeguard assets, to provide a reasonable
basis for determining material compliance with laws and regulations, and
to eliminate material misstatements from the financial statements.
These findings underscore the value of preparing and auditing annual
financial statements and the need to accelerate governmentwide financial
management reform through full implementation of the Chief Financial
Officers Act of 1990.

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

 REPORTNUM:  T-AIMD-94-3
     TITLE:  Financial Management: First Financial Audit of Customs 
             Revealed Serious Problems
      DATE:  10/05/93
   SUBJECT:  Internal controls
             Financial statement audits
             Federal agency accounting systems
             Accountability
             Reporting requirements
             Customs administration
             Federal property management
             Accounting procedures
             Financial management systems
             Accounts receivable
IDENTIFIER:  Customs Service Automated Commercial System
             
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