Federal audit report card.

Twenty-four of the largest U.S. federal agencies and departments consolidated their financial statements in the first-ever audit of the federal government for fiscal year 1997 (see News Report, page 15). Unfortunately, most of the agencies received poor grades, and nine failed to turn in their financial statements on time.

Financial Management Report for Fiscal Year 1997

                      Reliable                Compliance
                      financial   Effective   with laws
Departments           infor-      internal    and
and agencies          mation      control     regulations   Grade(*)

Department
of Energy             Yes         Yes         Yes             A

National
Aeronautics
and Space
Administration        Yes         Yes         Yes             A

National Science
Foundation            Qualified   Yes         Yes             B+

Department
of Labor              Yes         Yes         No              B-

General Services
Administration        Yes         Yes         No              B-

Nuclear Regulatory
Commission            Yes         Yes         No              B-

Social Security
Administration        Yes         Yes         No              B-

Environmental
Protection Agency     Yes         No          No              D+

Small Business
Administration        Yes         No          No              D+

Department of
Housing and Urban
Development           Qualified   No          No              D-

Department of
Treasury              Qualified   No          No              D-

Agency for
International
Development           No          No          No              F

Department of
Defense               No          No          No              F

Department of
Justice               No          No          No              F

Office of
Personnel
Management            No          No          No              F

Department of         No          No          No
Agriculture           report      report      report          INC

Department of         No          No          No
Commerce              report      report      report          INC

Department of         No          No          No
Education             report      report      report          INC

Department of         No          No          No
the Interior          report      report      report          INC

Department of         No          No          No
State                 report      report      report          INC

Department of         No          No          No
Transportation        report      report      report          INC

Department of         No          No          No
Veteran Affairs       report      report      report          INC

Federal Emergency     No          No          No
Management Agency     report      report      report          INC

Health and            No          No          No
Human Services        report      report      report          INC

(*) Grades are based on the audited financial statements prepared under the Government Management Reform Act of 1994.