Summary: GAO discussed financial management in the Federal Government. GAO noted that there is a need for greater Federal involvement in such aspects of financial management as budgetary processes, accounting systems, financial reporting, auditing, and automatic data processing (ADP). GAO believes that: (1) the numerous problems with the budget process include complexity, timing, and duplication; (2) Federal accounting systems need to be integrated into the budget process; (3) accounting systems do not provide sufficient information for Federal managers to make intelligent financial management decisions; and (4) internal controls throughout the Government need improvement. In addition, GAO noted that: (1) Inspectors General have contributed significantly to the improvement of Government financial management; (2) it is in the process of examining and revising financial reporting standards and principles; (3) there should be a trend toward standardization in Government financial reporting in the next decade; (4) it believes that the Government auditing community will begin to review Government organization as a whole, rather than reviewing programmatic issues and administrative activities; and (5) the widespread use of ADP in the Government has revolutionized Federal financial management. GAO stated that it expects to maintain a high degree of involvement in improving Government financial management over the next two decades.
