Controls Over Collections and Returned Checks at Defense Finance and Accounting Service, Indianapolis Operations.

摘要

We assessed whether Defense Finance and Accounting Service, Indianapolis Operations (DFAS Indianapolis) had internal controls to ensure that DoD collections and returned checks were properly safeguarded and accurately recorded. DFAS Indianapolis processed 26,624 collections for $316.8 million in FY 2007 and 4,898 returned U.S. Treasury checks for $43.5 million during the period of October 6, 2006, through February 29, 2008. We examined supporting documentation to determine when these collections were deposited and the location of the deposit. We also reviewed U.S. Treasury checks returned to the Disbursing Operations Directorate during FY 2007. DFAS Indianapolis did not have adequate internal controls to ensure that collections and returned U.S. Treasury checks were properly recorded and safeguarded. As a result, the Government unnecessarily incurred an estimated $201,738 in interest costs on debt or other obligations. In addition, checks improperly returned to debtors totaled $7.5 million in FY 2007. Also, the lack of internal controls increased the risk that collections and returned U.S. Treasury checks could be lost or stolen. DFAS Indianapolis deposited U.S. Treasury checks into an unauthorized deposit facility.