United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office Accounting and Information Management Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1996-09-30 monographic deposited born digital 56 p. GA 1.13:AIMD-96-146 https://www.govinfo.gov/app/details/GAOREPORTS-AIMD-96-146 P0b002ee1803981f4 f:ai96146 DGPO 2010-08-12 2011-03-23 GAOREPORTS-AIMD-96-146 machine generated eng fdlp REPORT GAOREPORTS-AIMD-96-146 AIMD-96-146 Federal reserve banks Cash management Internal controls Financial management systems Bank management Financial records Accounting procedures Accounting systems Bank examination Letter Report AIMD The October, November, and December 1995 monthly currency activity reports of the Los Angeles Federal Reserve Bank were prepared and reported incorrectly. The reported receipts from currency deposited in the Los Angeles Bank by depository institutions were not taken from the Bank's cash inventory records but rather "forced" to ensure that the currency activity report agreed with the daily balance sheet for the last day of the month. For example, the December 1995 report had a forced amount of more than $3.7 billion for receipts from circulation to ensure that the ending balance for cash on hand would equal $6.7 billion as reported in the daily balance sheet at the end of December. These problems in currency reporting are linked to limitations in the design of the underlying cash inventory system. The Los Angeles Bank's inability to precisely summarize currency activity from its cash inventory records raises serious questions about the integrity of its accounting and internal controls and may signal problems in the other Federal Reserve Banks that use this same system. Considering the large sums of cash that the Los Angeles Bank deals with and the problems identified in GAO's limited audit work, more detailed reviews of the Los Angeles Bank's operations are warranted. https://www.govinfo.gov/content/pkg/GAOREPORTS-AIMD-96-146/html/GAOREPORTS-AIMD-96-146.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-AIMD-96-146/pdf/GAOREPORTS-AIMD-96-146.pdf GAO/AIMD-96-146 https://www.govinfo.gov/app/details/GAOREPORTS-AIMD-96-146 Letter Report GAO/AIMD-96-146; Federal Reserve Banks: Inaccurate Reporting of Currency at the Los Angeles Branch; Federal reserve banks Cash management Internal controls Financial management systems Bank management Financial records Accounting procedures Accounting systems Bank examination