Summary: GAO evaluated the Department of Agriculture's (USDA) billings and collections system (BLCO) to assess: (1) the adequacy of BLCO automated data processing controls and internal controls over processing; (2) the actions USDA took to correct BLCO weaknesses; and (3) BLCO compliance with certain legal requirements in the areas of cash and debt management.
GAO noted that BLCO is operated by the USDA National Finance Center (NFC) and serves the Agricultural Marketing Service (AMS), Animal and Plant Health Inspection Service (APHIS), Federal Grain Inspection Service (FGIS), and Food Safety and Inspection Service (FSIS). GAO found that: (1) NFC used the new version of BLCO before completing program modifications and formal testing and certification, contrary to applicable policies and guidelines; (2) there was little assurance that the new version met security requirements and accurately and reliably performed all processing tasks consistent with the previous version; (3) restrictions on NFC personnel's access to BLCO data and programs were inadequate to safeguard data files and programs from unauthorized changes or use; and (4) BLCO program documentation was outdated and failed to conform to applicable policies and guidelines. GAO also found that: (1) BLCO processing controls were insufficient to ensure prompt and accurate processing and reporting of billing and collection data; (2) NFC and the inspection agencies needed data origination and entry control improvements to reduce the rate of transaction rejections and better ensure data accuracy; (3) NFC and the inspection agencies did not implement certain control measures required by debt collection regulations; and (4) NFC had not assessed the cost-effectiveness of its 2-year-old lockbox operation, an arrangement whereby payments were sent directly to a specific bank.
