The most serious reported problem is inadequately restricted access to sensitive data. The government cannot estimate the full magnitude of actual damage and loss resulting from federal computer security weaknesses because it is likely that many such incidents are either not detected or not reported. In the cover letter of the report addressed to Congress, David Walker, the Comptroller General, summarizes his findings of the 116 page report. Walker concludes that almost all of the federal agencies audited did not comply with certain financial management guidelines. Unfortunately, for fiscal year 1999, the financial management systems of 19 of 22 agencies that have reported thus far were again found not to be in substantial compliance with the requirements of the Federal Financial Management Improvement Act of 1996.
Net cost represents the gross cost of operations less attributable earned revenues.
Also, the government does not perform sufficient up-front verification procedures to ensure the validity of amounts claimed by taxpayers as overpayments prior to making disbursements for refunds. Finally, serious deficiencies in physical control of cash, checks, and sensitive data received from taxpayers increase both the government's and the taxpayers' exposure to losses and increases the risk of taxpayers becoming victims of crimes committed through identity fraud. This seems odd to me, I guess Big Brother and Corporate America are definitely in bed together and three's a crowd. Further, we were unable to determine whether the amounts reported in the individual net cost categories on the Statement of Net Cost and in the subfunction detail in Supplemental Information were properly classified. The money that the U.S. Government practically steals from the American people is not justifiably spent well and is in excess of what the government actually needs to sufficiently operate.