Major weaknesses in the U.S. Forest Service's accounting and financial reporting persist, despite the replacement of an outdated financial accounting system, according to a General Accounting Office report released Tuesday.
GAO concedes that the Forest Service has made "some progress in addressing financial management deficiencies," but its ability to produce financial reports has deteriorated because of problems implementing a new Agriculture Department accounting system known as the Foundation Financial Information System (FFIS).
"Until the agency is able to correct its basic accounting records and successfully implement FFIS to account for and report on its activities, it will not be in a position to achieve financial accountability," GAO concluded in the report ("Forest Service: Barriers to Financial Accountability Remain," GAO/AIMD-99-1).
After receiving adverse and qualified opinions on its financial statements since its first audit in 1991, in 1996 the Forest Service set a goal of achieving an unqualified audit by the end of fiscal 1999.
In August 1997, GAO reported that it was doubtful that the Forest Service could achieve that goal if management wavered, planned tasks were not accomplished and resources were not provided. In February of this year, GAO concluded that few of the agency's financial problems had been fully resolved.
The USDA inspector general issued a disclaimer of opinion for the Forest Service's fiscal 1997 financial statements due to "major weaknesses" in accounting and reporting real property, accounts receivable and accounts payable.
The agency has taken some "important steps" toward achieving financial stability, GAO reported. For example, the Forest Service has completed equipment inventories and is in the process of correcting erroneous data recorded in the Central Accounting System. In addition, the agency has issued an accounting desk guide for all staff that provides agency-wide accounting instructions.
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