Accounting and Disclosing Intragovernmental Transactions on the DOD Agency-Wide Financial Statements
INSPECTOR GENERAL DEPT OF DEFENSE ARLINGTON VA
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This report is the fourth in a series of audit reports related to the FY 1999 DoD Agency-wide financial statements. The first report discusses the internal controls and compliance with laws and regulations for DoD. The second report discusses the reporting of performance goal information in the DoD financial statements. The third report discusses journal voucher entries made to accounting data used to prepare the DoD financial statements. This report discusses the annual process of accounting and disclosing of intragovernmental transactions on the DoD Agency-wide financial statements. Office of Management and Budget OMB Bulletin No. 97-01, Form and Content of Agency Financial Statements, October 16, 1996, as amended January 7, 2000, requires the balance sheet and Statement of Net Cost to be prepared on a consolidated basis. When statements are prepared on a consolidated basis, intra-agency transactions must be eliminated to remove the double accounting effect. Intragovernmental transactions with other Federal agencies are to be reported as required supplemental information as part of the agencys financial statements. The required supplemental information is used to prepare the Federal consolidating statements. Reporting entities are encouraged to reconcile intragovernmental amounts with their trading partners.
- Administration and Management