NEW METHODS NEEDED FOR CHECKING PAYMENTS MADE BY COMPUTERS

• NCJ Number: 63766
• Author(s): ANON
• Date Published: 1977
• Length: 56 pages
• Corporate Author: US Comptroller General
• Sale Source: National Technical Information Service
• Language: English
• Country: United States of America
• Note: REPORT TO THE CONGRESS BY THE COMPTROLLER GENERAL OF THE UNITED STATES

Annotation

GOVERNMENT AGENCIES THAT OPERATE AUTOMATED PAYMENT SYSTEMS SHOULD DESIGNATE AN OPERATING OFFICIAL TO REVIEW SUCH SYSTEMS PERIODICALLY TO ASSURE THEIR RELIABILITY TO PRODUCE ACCURATE PAYMENTS.

Abstract

THE SYSTEM OF ACCOUNTING, AUDITING, AND CONTROL USED BY THE FEDERAL GOVERNMENT HAS EVOLVED INTO A HUGE, DECENTRALIZED, COMPUTERIZED, LARGELY CASHLESS SYSTEM. GOVERNMENT POLICY DICTATES THAT THOSE WHO APPROVE PAYMENT OF FEDERAL FUNDS TAKE PERSONAL RESPONSIBILITY FOR PAYMENT ACCURACY AND LEGALITY. TODAY (1977), THE FEDERAL GOVERNMENT DISBURSES ABOUT $700 BILLION ANNUALLY, WITH MOST OF THESE PAYMENTS BEING PROCESSED THROUGH COMPUTER SYSTEMS WHICH OFTEN DO NOT PROVIDE DATA READILY EXAMINABLE BY CERTIFYING OR DISBURSING OFFICERS. THUS, NEW METHODS ARE NEEDED TO ASSURE ACCURATE PAYMENTS. THE GOVERNMENT ACCOUNTING OFFICE (GAO) HAS OFFERED RECOMMENDATIONS FOR DEPARTMENT AND AGENCY HEADS TO IMPROVE THE SITUATION: (1) DESIGNATE AN OPERATING OFFICIAL AT THE ASSISTANT SECRETARY OR COMPARABLE LEVEL TO REVIEW EACH AUTOMATED PAYMENT SYSTEM AND ITS CONTROLS TO DETERMINE WHETHER THEY ARE OPERATING EFFECTIVELY, RELIABLY, ACCURATELY, AND LEGALLY; (2) DIRECT THAT SUCH REVIEWS BE MADE ANNUALLY, SUPPLEMENTED BY INTERIM CHECKS OF MAJOR SYSTEM CHANGES; (3) PROVIDE FOR THE CERTIFYING OR DISBURSING OFFICER TO CERTIFY OR DISBURSE AUTOMATED PAYMENTS ONLY WHEN OFFICIALLY NOTIFIED THAT THE SYSTEM AND ITS CONTROLS ARE FULLY OPERATING; (4) REQUIRE A WRITTEN STATEMENT FROM ANY OFFICIAL WHO DETERMINES THAT THE SYSTEM IS NOT OPERATING EFFECTIVELY AND CANNOT BE CORRECTED BEFORE THE NEXT VOUCHER PREPARATION; AND (5) PROVIDE THAT, WHEN SIGNIFICANT SYSTEM DEFICIENCIES ARE IDENTIFIED, THE DESIGNATED OPERATING OFFICIAL MUST ASSUME RESPONSIBILITY FOR SUBSEQUENT CERTIFICATION THAT THE PAYMENTS ARE OTHERWISE PROPER. THE REPORT INCLUDES COMMENTS AND AN APPENDIX OF LETTERS FROM THE HEADS OF SIX AGENCIES (OFFICE OF MANAGEMENT AND BUDGET; DEPARTMENT OF AGRICULTURE; DEPARTMENT OF COMMERCE; DEPARTMENT OF DEFENSE; DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE; AND DEPARTMENT OF THE TREASURY). (PRG)