- Nonintegrated financial management systems. Without a central, reliable financial system, errors in data entry can occur with information not reported in a timely manner. Thirteen of the 19 noncompliant agencies reported that nonintegrated systems were a problem in meeting FFMIA requirements.
- Inadequate reconciliation procedures. Such procedures serve as a checklist for verifying financial data. Just as people balance their checkbooks, agencies must make sure that their own balances are accurate. Sixteen of the 19 noncompliant agencies reported problems meeting this criterion.
- Lack of accurate and timely reporting. Recording transactions in the general ledger in a timely manner can facilitate accurate reporting in agencies' financial reports and other management reports that are used to guide managerial decision-making. Fourteen of the 19 noncompliant agencies listed this an issue in meeting FFMIA requirements.
- Noncompliance with the Standard General Ledger (SGL). The general ledger provides a uniform chart of accounts and technical guidance used to standardize agency accounting. Agencies that do not properly use these standards to collect their financial information run the risk of producing unreliable and inaccurate data. Eight of the 19 noncompliant agencies could not meet the SGL standard.
- Lack of adherence to federal accounting standards. There are 17 federal financial accounting standards, but emerging accounting issues mean agencies need to be able to accommodate new standards continually. Twelve of the 19 noncompliant agencies failed to meet one or more federal accounting standards.
- Weak security over information systems. The recent onslaught of hacker attacks has demonstrated the vulnerability of many federal information systems, putting the reliability and availability of financial data at risk. All 19 noncompliant agencies failed to meet information security standards.
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