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NCJ Number: 68559 Add to Shopping cart Find in a Library
Title: IMPROVEMENTS NEEDED IN THE MANAGEMENT OF FEDERAL PRISON INDUSTRIES' FACTORIES
Author(s): ANON
Corporate Author: US Government Accountability Office
United States of America
Date Published: 1980
Page Count: 9
Sponsoring Agency: US Government Accountability Office
Washington, DC 20548
Sale Source: US Government Accountability Office
441 G Street, NW
Washington, DC 20548
United States of America
Language: English
Country: United States of America
Annotation: RESULTS ARE REPORTED FROM A GENERAL ACCOUNTING OFFICE AUDIT OF THE FISCAL YEAR 1979 FINANCIAL STATEMENTS OF FEDERAL PRISON INDUSTRIES, INC. (FPI).
Abstract: DEFICIENCIES WERE FOUND TO EXIST IN PRICING PRODUCTS, DETERMINING MANUFACTURING COSTS, PURCHASING MATERIALS, MAINTAINING INVENTORIES, COLLECTING ACCOUNTS RECEIVABLE, AUTHORIZING AND REIMBURSING TRAVEL, AND INTERNAL REPORTING OF FINANCIAL INFORMATION. THESE PROBLEMS AFFECT THE EFFICIENCY OF FPI'S OPERATIONS AND ITS NET PROFIT. THIS AUDIT, ALONG WITH THE FINDINGS OF DEPARTMENT OF JUSTICE AND FPI INTERNAL AUDITORS, SHOWED THAT THE PROBLEMS OFTEN OCCURRED BECAUSE FPI FACTORY STAFF DID NOT COMPLY WITH ESTABLISHED POLICIES AND PROCEDURES. IN SOME INSTANCES, HOWEVER, POLICIES AND PROCEDURES DID NOT PROVIDE SUFFICIENT GUIDANCE FOR FACTORY STAFF TO FUNCTION EFFECTIVELY. ADDITIONAL FACTORY GUIDELINES SHOULD BE DEVELOPED TO ENSURE THAT SELLING PRICES ARE BASED ON MARKET PRICES, ACCUMULATED COST DATA ARE COMPLETE AND ACCURATE, AND COST VARIANCES ARE ANALYZED AND APPROPRIATE CORRECTIVE ACTION IS TAKEN. FURTHER, OVERHEAD ACCOUNTING PROCEDURES SHOULD BE REVISED TO ENSURE THAT NONMANUFACTURING COSTS, SUCH AS PERMANENT CHANGE OF STATION COSTS, ARE NOT INCLUDED AS MANUFACTURING OVERHEAD. SUCH A REVISION SHOULD ALSO PROVIDE FOR THE DEVELOPMENT OF STABLE OVERHEAD RATES. ONE APPROACH WOULD BE TO REQUIRE ANNUAL OVERHEAD RATES WHICH COULD BE ADJUSTED TO RECOGNIZE SIGNIFICANT CHANGES IN OVERHEAD COSTS OR LEVELS OF ACTIVITY. (AUTHOR ABSTRACT MODIFIED--RCB)
Index Term(s): Audits; Correctional industries; Federal Prison Industries Inc; Federal programs; Financial management
To cite this abstract, use the following link:
http://www.ncjrs.gov/App/publications/abstract.aspx?ID=68559

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