Summary

GAO reviewed the General Services Administration's (GSA) method of recovering and reporting operating expenses of the Automated Data Processing (ADP) Revolving Fund. The fund is reimbursable and is authorized to recover approximate operating costs for services provided through established programs.

GAO found that, in fiscal year 1982, the fund financed about $144 million in program activity under established programs. To ensure the financial integrity of individual fund programs and to present a reasonable statement of programmatic operating expenses, GSA periodically reviews the rates to recover approximate costs and to adjust them to ensure that each program is financially self-sufficient. GAO also found that GSA has not properly allocated appropriated costs to the fund and has not established adequate measures to assess the reasonableness of some program costs. As a result, GSA is billing agencies for some costs that are unrelated to the programs they are using, and financial reports do not reflect the true performance of fund activities.