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Financial Management: USDA Faces Major Financial Management Challenges

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Report Type Reports and Testimonies
Report Date March 21, 2000
Report No. T-AIMD-00-115
Subject
Summary:

As shown by the Inspector General's sixth disclaimer in a row on the Department of Agriculture's (USDA) consolidated financial statements, USDA continues to have serious problems in accounting for hundreds of billions of dollars in assets and budgetary resources. Before the agency can achieve financial accountability, it must overcome a host of serious financial management deficiencies cited by GAO and USDA's Office of Inspector General. This testimony focuses on problems USDA has experienced in the following five areas: (1) implementing the Federal Credit Reform Act of 1990 and related accounting standards, (2) reconciling its fund balance with Treasury accounts, (3) addressing weaknesses in the Forest Service's financial accounting and reporting, (4) correcting other material internal control weaknesses, and (5) complying with key laws and regulations. GAO also assesses the Rural Utilities Service's electric loan program policies and procedures and the government's vulnerability to losses from direct loans or guarantees that the Service made to electric cooperatives.

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