Terminating the Audit of the National Flood Insurance Program's Fiscal 1980 Financial Statements.
GENERAL ACCOUNTING OFFICE WASHINGTON DC ACCOUNTING AND FINANCIAL MANAGEMENT DIV
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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 NFIPs 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 NFIPs accounting system, the financial management of the program, and managements 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.
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