Internal Control Weaknesses in Army Data Processing Operations and Accounting and Financial Reporting

GAO reported on internal control weaknesses in the Army Corps of Engineers' data processing operations and accounting and financial reporting processes. GAO noted that the Corps: (1) overused a transaction entry procedure that was primarily intended for correcting, but not entering, accounting data; (2) did not document data entries or maintain control logs; (3) allowed personnel to both prepare and approve accounting transactions, contrary to separation of duties standards; (4) allowed system accountants and contractor computer programmers unrestricted access to accounting system computer production programs; (5) lacked written policies and procedures governing accounting system software changes and testing and for reporting and documenting software problems; (6) lacked a formal contingency plan for disaster recovery and backup processing of accounting data; (7) did not implement a uniform general ledger account structure and used inaccurate, inadequate, and outdated instructions to extract data and report values; (8) did not record noncurrent receivables due from the public in its accounting system; and (9) lacked edit routines to ensure the accuracy of financial data received from field locations.