Accession Number : ADA107188
Title : Terminating the Audit of the National Flood Insurance Program's Fiscal 1980 Financial Statements.
Corporate Author : GENERAL ACCOUNTING OFFICE WASHINGTON DC ACCOUNTING AND FINANCIAL MANAGEMENT DIV
Report Date : 21 Sep 1981
Pagination or Media Count : 8
Abstract : In summary, a financial reporting system was to have been in place that should have enabled FEMA (Federal Emergency Management Agency) to effectively carry out its responsibilities under the Government Corporation Control Act. EDSF (Electronic Data Systems Federal Corporation) was to provide the necessary monthly reports of NFIP's (National Flood Insurance Program) insurance operations; FIA (Federal Insurance Administration), as program monitor, was to assure that EDSP provided accurate, complete, and timely data; and FEMA was to incorporate the financial information into its own accounting system for later reporting needs, including preparation of NFIP financial statements. The inability to prepare financial statements reflects negatively on the adequency of NFIP's accounting system, the financial management of the program, and management's commitment to a sound system of internal accounting controls. This is due to the following weaknesses: (1) FEMA Accounting did not carry out its accounting control responsibilities for the Flood Program, (2) The contract with the insurance program operator, EDSF, did not specify essential controls and financial reports, (3) EDSF did not maintain adequate accounting controls over financial reporting; and (4) FIA did not adequately monitor EDSF operations.
Descriptors : *PUBLIC ADMINISTRATION , *FLOODS , *INSURANCE , *AUDITING , FILES(RECORDS) , CONTROL , UNITED STATES GOVERNMENT , MANAGEMENT , ACCOUNTING , MONITORING , REPORTS , FINANCE
Subject Categories : Administration and Management
Government and Political Science
Distribution Statement : APPROVED FOR PUBLIC RELEASE