The District is now in its fourth year of implementing its new financial management system. Major Components of the District’s System of Accounting and Reporting Are Not Operational

Financial management requires that financial and program managers be accountable for financial results of actions taken, control over the government’s financial resources, and protection of assets. In addition, the District has not yet implemented the fixed asset module of SOAR. Status of District Efforts to Improve Its Budget Process

As discussed earlier, the District has placed the implementation of the Performance Budgeting system module on hold. District officials need to take time now to assess the current status of the city’s financial management system, to identify problems, and to establish a disciplined process to address these problems through the completion of its financial systems implementation. Further, the implementation of systems that feed into SOAR— personnel and payroll, procurement, and tax —is incomplete and the systems lack electronic interfaces with SOAR. Both of these modules are key components of the SOAR system. Study the accounting and financial management information needs of the District of Columbia government.
Why GAO Did This Study

The District of Columbia is acquiring a new financial management system to improve its accountability over government expenditures. This report assesses the status of the District of Columbia's implementation of important components of this system, including its new core general ledger System of Accounting and Reporting (SOAR).

What GAO Found

GAO found that although the District is in its fourth year of implementing its new financial management system, essential elements of the system are not yet operational. Two components of SOAR have not been fully implemented: the budget module is on hold, and the fixed assets module is incomplete. The implementation of the systems that feed into SOAR--personnel and payroll, procurement, and tax--is incomplete and the systems lack electronic interfaces with SOAR. Because the financial management system is incomplete, much of the District's financial management and budget information is produced through cumbersome, manual processes and the extraordinary efforts of a few key staff. District officials need to take time to assess the current status of the city's financial system, to identify problems, and to establish a disciplined process to address these problems through the completion of its financial systems implementation.