Summary: GAO examined the Government Printing Office (GPO) financial statements, discussed observations that were not included in the GAO annual report to Congress and suggested improvements of internal accounting controls for operational efficiency.
GAO examination of yearend balances for deferred subscription income, accrued annual leave, and sick leave was hampered because tapes supporting these balances were destroyed. Although GPO cannot keep all computer tapes, GAO suggested that tapes supporting the yearend statement totals be retained for the annual financial audit. A GAO review of the publications for the sale inventory account disclosed differences between prices shown on the publications receipt and control system (PRCS) tape and the pricing cards maintained by the Superintendent of Documents. GAO suggested that this matter requires attention by management because there is a potential for increasing inaccuracies. In addition, a review of the cost of publications destroyed expense account disclosed errors on the sales stock adjustment worksheets which support the sales price destruction listing. The September 1976 journal vouchers showed that a yearend adjusting entry was made to eliminate a 25 percent handling surcharge on all paper and envelopes inventory issued from the GPO central office to the field offices, which is in accord with accounting principles; however, a similar handling charge was not eliminated on the material and supplies inventory issued from the central office. GAO suggested that both adjustments be made on a yearly basis.
