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GGD-80-67 1 (1980-06-09)

handle is hein.gao/gaobabaqf0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 5~4>Z~ 112. Ii GDENRALI GOVRNM WT DIVISION B-198500 Mr. Norman A. Commissioner, Industries, Department of Carlson Federal Prison Inc. Justice Dear Mr. Carlson: Subject: Amprovements Needed in the Management of Federal Prison Industries' Factorie7 (GGD-80-67) During our recent examination of the fiscal year 1979 financial statements of Federal Prison Industries, Inc. (FPI), we found a number of problems which we believe should be corrected. Deficiencies exist in pricing prod- ucts, determining manufacturing costs, purchasing materi- als, maintaining inventories, collecting accounts receiv- able, authorizing and reimbursing travel, and internal reporting of financial information. These problems, which are discussed in detail below, affect the efficiency of FPI's operations and its net profit. Our work and the work of Department of Justice and FPI internal auditors showed that the problems often occurred because FPI factory staff did not comply with established policies and procedures. In some instances, however, policies and procedures did not provide suffi- cient guidance for factory staff to carry out their activi- ties. Further, we believe that many of the problems are attributable, in large part, to inexperienced personnel. We conducted our review at the following FPI loca- tions: (260021) JUNE 9, 1980 I tlllII11 1 111 111 112511