Budget Variances Were at Least $415 Million

Of the $4.5 billion appropriated to the U.S. Census Bureau for fiscal year 2000, lower expenditures and obligations than planned resulted in available balances of at least $415 million. Fiscal Year 2000 Funds Available for Fiscal Year 2001 Were $360 Million

On September 27, 2000, the bureau reported to the Congress that it had “at least $305 million of budget savings” out of its $4.5 billion fiscal year 2000 appropriation for the 2000 decennial census. This resulted in about $348 million of lower salary and benefit costs for over 11,000 fewer support staff than planned. Higher Enumerator Costs Partially Offset Budget Variances

Enumerator workload is largely determined by the initial mail response rate for returned census questionnaires. However, budget variances from the higher mail response rate and the lower support staff workload were partially offset by over $100 million of higher salary and benefit costs than planned for enumerators in framework 3, including a higher workload for unanticipated recounts. According to recent bureau data, enumerator productivity did not have a significant impact on budget variances for the 2000 decennial census because the actual national average time to visit a household and complete a census questionnaire was about the 1 hour estimated by the bureau. Weaknesses in Key Internal Controls

For fiscal year 2000, the U.S. Census Bureau had significant internal control weaknesses that resulted in an inability to develop and report complete, accurate, and timely information for management decision- making. The specific control weaknesses for fiscal year 2000 were related to the lack of controls over financial reporting and financial management systems. Financial reporting issues included (1) the inability to produce accurate and timely financial statements and other financial management reports needed for oversight and day-to-day management, (2) the lack of timely and complete reconciliations needed to validate the balances of key accounts, and (3) unsupported and inaccurate reported balances for accounts payable and undelivered orders, two key accounts needed to manage and report on unliquidated obligations.
What GAO Found

In September 2000, the U.S. Census Bureau told Congress that it had at least $305 million in budget savings out of its $4.5 billion fiscal year 2000 no-year appropriations for the 2000 decennial census. Of the $4.5 billion appropriated to the U.S. Census Bureau in fiscal year 2000, lower-than-expected expenditures and obligations resulted in available balances of at least $415 million. A lower-than-expected support staff workload reduced salary and benefit costs by about $348 million. Enumerator workload is largely determined by the initial mail response rate for returned census questionnaires. The initial mail response of 64 percent meant that Census enumerators did not have to visit more than three million American households. However, the available balances from the higher mail response rate and the lower support staff workload were partially offset by about $100 million of higher salary and benefit costs for enumerators, including a higher workload for unanticipated recounts. According to Bureau data, enumerator productivity did not significantly affect budget variances for the 2000 decennial census. The Bureau reported the national average time to visit a household and complete a census questionnaire was about the one hour estimated. Because of significant internal control weaknesses, the Bureau was unable to develop and report complete, accurate, and timely information for managing decision-making. Specific control weaknesses for fiscal year 2000 were related to the lack of controls over financial reporting and financial management systems. Financial reporting issues included (1) the inability to produce accurate and timely financial statements and other financial management reports needed for oversight and day-to-day management; (2) the lack of timely and complete reconciliations needed to validate the balances of key accounts; and (3) unsupported and inaccurate reported balances for accounts payable and undelivered orders--two key accounts needed to manage and report on unliquidated obligations.