Financial Audit of the National Institutes of Health's Management and Service and Supply Funds

EXECUTIVE SUMMARY:

This final audit report, prepared by Price Waterhouse (PW), certified public accountants, presents the results of their audit of the National Institutes of Health's Management and Service and Supply Funds financial statements for the Fiscal Year ended September 30, 1992. The PW auditors found significant internal control weaknesses, and noncompliance with the Department of Health and Human Services' accounting manual that had not yet been corrected from the prior year's audit. The most significant problems are in the areas of inventory management, property and equipment, and accounts payable. The areas of inventory management and property and equipment were declared material weaknesses in its December 1992 Federal Managers' Financial Integrity Act (FMFIA) report. We believe that a material weakness in accounts payable meets the Office of Management and Budgets criteria for a material internal control weakness that should be reported to the President and Congress.

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