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Saturday, December 31, 2011

Federal financial report is in, but GAO offers no opinion

The federal government's consolidated financial report for 2011 is out and the picture isn't pretty. The Government Accountability Office found once again that it can't render an opinion on that statement. That's despite the fact that several departments received their own clean financial statements.

In Fiscal Year 2011, 20 of the 24 individual CFO Act agencies received unqualified opinion on all of their financial statements, Dacey said. One agency received an unqualified opinion on all of its statements with the exception of its statements on social insurance and changes of social insurance. Another agency received a qualified opinion.

The three main obstacles to GAO giving an opinion on the accrual based financial statements:

1.Serious financial problems at the Department of Defense have prevented its statements from being auditable.

2.The federal government has been unable to adequately account for and reconcile intergovernmental activity and balances between agencies.

3.The federal government has an ineffective process for preparing consolidated financial statements.

-Michael O'Connell, FederalNewsRadio.com

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