GAO IDENTIFIED AND SELECTED FOR SURVEY ALL 29 GOVERNMENT DEPARTMENTS AND AGENCIES THAT HAD REPORTED ACCOUNTS RECEIVABLE OF $10 MILLION OR MORE AS OF JUNE 30, 1975. THIS GROUP WAS LIMITED TO 12 MAJOR AGENCIES FOR REVIEW. THE GAO REPORTED THAT PROMPT COLLECTION ACTION ON THE GOVERNMENT'S ACCOUNTS RECEIVABLE FROM THE PUBLIC WAS HINDERED BY INACCURACIES IN ACCOUNTING FOR AND REPORTING OF ACCOUNTS RECEIVABLE (WITH ERRORS OF $1.5 BILLION), A LACK OF PROMPT AND AGGRESSIVE COLLECTION ACTION, AND LOW OR NO INTEREST CHARGES BEING IMPOSED ON DELINQUENT ACCOUNTS. MOST REPORTING ERRORS DERIVED FROM UNDERSTATEMENTS RESULTING FROM CONFUSION AS TO HOW OVERPAYMENTS TO THE PUBLIC SHOULD BE RECORDED AND REPORTED FROM BILLINGS, DELAYS, MISCLASSIFICATIONS, AND CLERICAL ERRORS. MOST AGENCIES EITHER DID NOT PROVIDE FOR UNCOLLECTIBLE RECEIVABLES OR ESTABLISHED AMOUNTS THAT WERE TOO LOW. THE GAO RECOMMENDED THAT THE SECRETARY OF THE TREASURY REVISE THE TREASURY FISCAL REQUIREMENTS MANUAL TO SPECIFICALLY REQUIRE ACCOUNTS RECEIVABLE NOT DUE WITHIN A PERIOD OF A YEAR OR LESS TO BE CLASIFIED AS NONCURRENT ASSETS, REQUIRE UNCOVERED BENEFICIARY OVERPAYMENTS TO BE REPORTED AS ACCOUNTS RECEIVABLE AND IDENTIFIED AS SUCH, AND REQUIRE THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS TO GIVE CONSIDERATION TO PAST COLLECTION EXPERIENCE. GAO ALSO RECOMMENDED THAT GUIDELINES BE ISSUED THAT PROVIDE THAT GOVERNMENT RECEIVABLES BEAR INTEREST AT NOT LESS THAN AN ESTABLISHED MINIMUM RATE UNLESS OTHERWISE SPECIFIED OR PRECLUDED BY STATUTE, AS EVIDENCE SHOWS THAT THOSE AGENCIES WHO CHARGE INTEREST RATES HAVE MUCH LOWER DELINQUENCY RATES. GAO ALSO FOUND THAT A NEED EXISTS FOR FEDERAL MANAGERS TO STRENGTHEN FINANCIAL MANAGEMENT IN VIRTUALLY ALL BALANCE SHEET AND INCOME AND EXPENSE ACCOUNTS. ELEVEN NOTES AND THREE STUDY QUESTIONS ARE PROVIDED.