You know the company’s in trouble when the auditor tells the company that its bookkeeper can’t manage the company’s finances, reconcile balance sheets among different departments, or prepare credible financial statements.
And you know it’s real trouble when the auditor can’t even do an audit and provide the company with a statement of its financial health — or ill health.
That’s what Gene Dodaro, acting comptroller general of the United States and head of the Government Accounting Office, has told the federal government about its fiscal 2010 books: You’re in deep fiscal do-do. Said Dodaro:
Even though significant progress has been made since the enactment of key financial management reforms in the 1990s, our report on the U.S. government’s consolidated financial statement illustrates that much work remains to be done to improve federal financial management.
Apparently, the feds don’t know what to count, how to count it, and how to report the count.