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Financial Management: Outsourcing of Finance and Accounting Functions

  Premium   Download PDF Now (28 pages)
Report Type Reports and Testimonies
Report Date Oct. 17, 1997
Report No. AIMD/NSIAD-98-43
Subject
Summary:

According to the Office of Management and Budget, the federal government spent more than $7 billion in fiscal year 1997 to perform, maintain, and improve finance and accounting operations. Auditors, however, continue to report that these operations are plagued by deficiencies that undermine the government's effectiveness and drain resources that could be used elsewhere. Outsourcing--contracting for a function previously done in-house--is one approach being used by the private sector, as well as state and local governments, to reduce costs and improve financial management. This report provides information on (1) the extent to which private sector and nonfederal public groups use outsourcing to improve financial operations and reduce costs, (2) existing outsourcing vendor capacity to perform finance and accounting operations, and (3) factors associated with successful outsourcing.

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