Natural Resources Conservation Service’s Financial Statements for Fiscal Years 2021 and 2020

We recommend that NRCS management, along with Farm Production and Conservation Business Center (FPAC-BC): Monitor open obligations to ensure that invalid or expired obligations are deobligated timely.

We recommend that NRCS management, along with FPAC-BC: Provide additional training to control owners responsible for the review and approval of obligations and establish mechanisms to enforce accountability of control owners’ adherence to ensuring obligations are posted in the general ledger with the correct accounting information.

We recommend that NRCS management, along with FPAC-BC: Identify and implement solutions to address current system limitations preventing the proper recording of budgetary transactions.

We recommend that NRCS management, along with FPAC -BC: Review the business rules used for the automated process used to make adjustments to the recorded obligation activity to verify correcting entries are recorded to correct general ledger accounts and to determine the root cause for incorrect entries identified during the FY 2021 audit.

We recommend that NRCS management, along with Farm Production and Conservation Business Center (FPAC-BC): Enhance internal communication to ensure that information is provided to control owners timely and prevent delays in the recording of obligations and unfilled customer orders.