GAO faults U.S. financial reporting

The U.S. government didn't maintain effective controls over financial reporting in the latest fiscal year, potentially skewering the accuracy of federal financial statements, a congressional investigative group found. In a letter to President Bush and Congress, Comptroller General of the United States David Walker said government accountants found 'material deficiencies' in the federal government's financial statements for 2005 and 2004. 'The federal government did not maintain effective internal control over financial reporting...and compliance with significant laws and regulations as of September 30, 2005,' wrote Walker, who heads the Government Accountability Office.