	Highlights of Major Issues Relating to the U.S. Government’s Consolidated Financial Statements for Fiscal Year 2000

As was the case for fiscal years 1997 through 1999,our report on the U.S. government’s consolidated financial statements for fiscal year 2000 states that certain significant financial systems weaknesses, problems with fundamental recordkeeping and financial reporting, incomplete documentation, and weak internal controls continued to hamper the government’s ability to accurately report a significant portion of its assets, liabilities, and costs. Information to compile agency financial statements should flow from their financial management systems. As a result, USDA has been unable to implement the Federal Credit Reform Act of 1990 and related accounting standards. In addition, these problems materially affect USDA’s budget submissions because the same cost estimates are generally used for both budget preparation and financial reporting. In closing Mr. Chairman, I want to underscore the importance of the President and the new Administration emphasizing and giving priority to (1) addressing the problems preventing us from being able to express an opinion on the government’s consolidated financial statements, (2) having effective internal control, and (3) modernizing financial management systems.
What GAO Found

The Comptroller General discusses GAO's report on the U.S. government's consolidated financial statements for fiscal year 2000. This is the fourth consecutive year that GAO has been unable to express an opinion on the U.S. government's consolidated financial statements. Material weaknesses in internal control and accounting and reporting issues prevented GAO from being able to provide Congress and the American people with an opinion as to whether the government's consolidated financial statements are fairly stated in accordance with U.S. generally accepted accounting principles. These material weaknesses also affected the reliability of information in the Management's Discussion and Analysis included in the financial report and other financial management information--including information used to manage the government and budget information reported by agencies--which is taken from the same data sources as the financial statements.