Major, long-standing financial management challenges
threaten the National Aeronautics and Space
Administration’s ability to manage its complex programs,
the Government Accountability Office said.
The space agency has been on GAO’s high-risk list since
1990 because of problems overseeing contracts, due in
part to a lack of accurate and reliable information on
contract spending, according to GAO-06-216T.
It said NASA’s new core financial management system
has not addressed the need to improve contract
management, as well as produce credible cost estimates
and auditable financial statements.
Because NASA did not use disciplined acquisition and
implementation practices, the system lacks basic
functionality, the report said.
For example, the system is unable to produce transaction
level support for key account balances, properly identify
adjustments or correct entries, or correctly and
consistently post transactions to the right accounts,
according to GAO.
Further, it said that rather than treating the new
system as an opportunity to transform operations, it
automated already ineffective processes — and “failed
to recognize the importance and need for highly skilled,
well-trained financial personnel.”
