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Archive for December 2011

GAO: U.S. government’s checkbook still too screwed up to audit

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Consider the continual political warfare among tea partiers, Democrats, Republicans, President Obama, members of Congress, and anyone else with a media megaphone over size of the deficit run up by the American government. You’d assume they were confident the government knew how much money it took in and how much it spent. You’d assume the government knew how to keep its checkbook in order.

And you’d be wrong. According to the fiscal 2011 financial report by the nation’s bookkeeper, the Government Accounting Office, some government agencies cannot soundly manage their fiscal affairs.

The GAO said in a press release today it cannot

render an opinion on the 2011 consolidated financial statements of the federal government, because of widespread material internal control weaknesses, significant uncertainties, and other limitations.

As was the case in 2010, the main obstacles to a GAO opinion on the accrual- based consolidated financial statements were: (1) serious financial management problems at the Department of Defense (DOD) that made its financial statements unauditable, (2) the federal government’s inability to adequately account for and reconcile intragovernmental activity and balances between federal agencies, and (3) the federal government’s ineffective process for preparing the consolidated financial statements.

Surely the feds have tackled this problem, right? They’re getting a handle on it, right?
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Written by Dr. Denny Wilkins

December 23, 2011 at 2:57 pm

Posted in Uncategorized