Summary: A review of the General Services Administration's (GSA) system of accounting for accounts receivable from the public showed that the system was, for the most part, operated effectively and in accordance with the accounting system approved by the Comptroller General in 1965. However, the accounting for and reporting of these receivables needed improvement.
One GSA fund was overstated by $69.9 million, and two others were understated by $4.1 million. About $9.3 million of long-term installments were improperly classified as current assets. Delinquent accounts were not promptly identified for followup action. This material inaccuracy in recording and reporting receivables indicated a need for improvement in the system of internal controls. The exclusion of delinquent accounts that were 30 to 60 days older than the GSA aging schedule precluded the prompt identification and subsequent collection of delinquent accounts. Inclusion of these delinquent accounts on the aging schedule would contribute to prompt collection action.
