GAO: Many agencies’ financial management systems inadequate

Most federal agencies continue to lack the financial data needed to manage daily operations efficiently and effectively and to provide an acceptable level of accountability. Despite that, most agencies covered by the CFO Act have obtained clean or unqualified audits on their financial statements, according to a new Government Accountability Office report. The problem lies with agencies’ underlying systems, GAO said in the report. Auditors need to perform more comprehensive examinations than those needed for an opinion about an agency’s financial statements. And the Office of Management and Budget should tighten rules so that auditors report whether an agency complies with the broader requirements of the Federal Financial Management Improvement Act (FFMIA).