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 1998-02-26 monographic deposited born digital 50 p. GA 1.13:AIMD-98-77 https://www.govinfo.gov/app/details/GAOREPORTS-AIMD-98-77 P0b002ee1803969f1 f:ai98077 DGPO 2010-08-12 2011-03-23 GAOREPORTS-AIMD-98-77 machine generated eng fdlp REPORT GAOREPORTS-AIMD-98-77 AIMD-98-77 Financial statement audits Tax administration Financial management Internal controls Federal agency accounting systems Financial records Accounting procedures Hospital Insurance Trust Fund U.S. Government Standard General Ledger Joint Financial Management Improvement Program IRS Revenue Accounting Control System Letter Report AIMD Pursuant to a legislative requirement, GAO examined the Internal Revenue Service's (IRS) custodial financial statements for fiscal year (FY) ending September 30, 1997.<p/>GAO noted that: (1) the IRS custodial financial statements were reliable in all material respects; (2) IRS management's assertion about the effectiveness of internal controls stated that except for the material weaknesses in internal controls presented in the agency's FY 1997 Federal Managers' Financial Integrity Act (FIA) report, internal controls were effective in satisfying the following objectives: (a) safeguarding assets from material loss; (b) assuring material compliance with laws governing the use of budget authority and with other relevant laws and regulations; and (c) assuring that there were no other material misstatements in the custodial financial statements; (3) however, GAO found that IRS' internal controls, taken as a whole, were not effective in satisfying these objectives; (5) due to the severity of the material weaknesses in IRS' financial accounting and reporting controls, all of which were reported in IRS' FY 1997 FIA report, extensive reliance on ad hoc programming and analysis was needed to develop financial statement line item balances, and the resulting amounts needed material audit adjustments to produce reliable custodial financial statements; and (6) one reportable noncompliance with selected provisions of laws and regulations GAO tested, and that IRS' financial management systems do not substantially comply with the requirements of the Federal Financial Management Improvement Act of 1996. https://www.govinfo.gov/content/pkg/GAOREPORTS-AIMD-98-77/html/GAOREPORTS-AIMD-98-77.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-AIMD-98-77/pdf/GAOREPORTS-AIMD-98-77.pdf GAO/AIMD-98-77 https://www.govinfo.gov/app/details/GAOREPORTS-AIMD-98-77 Letter Report GAO/AIMD-98-77; Financial Audit: Examination of IRS' Fiscal Year 1997 Custodial Financial Statements; Financial statement audits Tax administration Financial management Internal controls Federal agency accounting systems Financial records Accounting procedures Hospital Insurance Trust Fund U.S. Government Standard General Ledger Joint Financial Management Improvement Program IRS Revenue Accounting Control System Public Law 104-208