Summary

GAO reviewed Department of State efforts to implement and comply with the Federal Managers' Financial Integrity Act of 1982.

GAO found that State has made progress in complying with Office of Management and Budget (OMB) guidelines for evaluating and reporting on internal controls. However, GAO noted that: (1) some programs and functions were not included in assessable units; (2) staff training and quality assurance were needed; and (3) internal control reviews were incomplete. Weaknesses in State's process for first-year implementation of the act need to be corrected so that the yearend statement on the status of internal administrative and accounting controls and the extent to which its accounting systems comply with the Comptroller General's requirements will become more meaningful. GAO encourages active participation in the program by top level managers and believes that managers should be held accountable for their internal control responsibilities. GAO plans to monitor the planned improvements.