Improving NASA's Financial Management Systems

• In 2000, NASA began a system modernization effort known as the Integrated Enterprise Management Program, which is intended to help NASA provide meaningful, reliable, and timely information to support effective day-to-day program management and external financial reporting. In 2003, NASA implemented the program’s core financial management system. However, to date, this system has not been able to produce auditable financial statements, and it does not substantially comply with the requirements of the Federal Financial Management Improvement Act.


• For years, GAO and others have reported that NASA has not maintained effective control over its property, plant, and equipment and materials (which amounted to $25 billion as of September 30, 2007). Because NASA did not have a fully integrated financial management system, the agency could not identify all equipment costs as they were incurred and could not provide reasonable assurance that all equipment purchases were accurately recorded in its property management system. To address this long-standing issue, NASA implemented an integrated asset management/plant, property and equipment module in May 2008 to integrate plant, property and equipment management and reporting with its financial management system. However, NASA did not take steps to ensure that the data from the old system was accurate before recording it in the new asset management system.


• NASA is developing three more business modules under its Integrated Enterprise Management Program—for the management of human capital, travel, and aircraft management. In addition, NASA began a new initiative in 2007 that it believes takes a more holistic view of all of its business systems agencywide. Under this initiative, it is taking steps to identify the weaknesses in each system and setting priorities to address these weaknesses. NASA intends this effort to be an ongoing process that will ultimately supplant the Integrated Enterprise Management Program once its final 3 modules are complete.

^ Back to topWhat Needs to Be Done

• NASA should continue to develop its Integrated Enterprise Management Program to provide meaningful, reliable, and timely information to support effective day-to-day program management and external financial reporting, as well as comply with the requirements of the Federal Financial Management Improvement Act.

  Highlights of GAO-04-151 (PDF)

• NASA cannot rely on technology alone to solve its equipment management problems because many of its equipment management problems are due to an agency culture that does not enforce accountability, which undermines its ability to carry out its stewardship responsibilities. Transforming NASA’s culture and strengthening the agency’s control environment will require the sustained attention and commitment of NASA’s top leadership, including holding employees accountable for equipment losses.

  Highlights of GAO-07-432 (PDF)

^ Back to topKey Reports

Property Management

Business Modernization

Business Modernization

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