WASHINGTON (January 17, 2013) – The U.S. Government Accountability Office (GAO) cannot render an opinion on the 2012 consolidated financial statements of the federal government because of widespread material internal control weaknesses, significant uncertainties, and other limitations.
As was the case in 2011, the main obstacles to a GAO opinion on the accrual-based consolidated financial statements were:
Serious financial management problems at the Department of Defense (DOD) that made its financial statements unauditable.
The federal governments inability to adequately account for and reconcile intragovernmental activity and balances between federal agencies.
The federal governments ineffective process for preparing the consolidated financial statements.