Financial Management: Major Deficiencies in Financial Reporting for Other Defense Organizations-General Funds
INSPECTOR GENERAL DEPT OF DEFENSE ARLINGTON VA
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This report should be read by officials who are responsible for accounting and reporting on the financial activities of the Other Defense Organizations-General Funds, and by officials who use the financial reports of the Other Defense Organizations-General Funds to make management decisions. It explains major financial reporting deficiencies that diminish the quality and utility of the Other Defense Organizations-General Funds financial reports. This financial related audit was performed in response to the Chief Financial Officers Act of 1990, as amended, which requires DoD and other Government agencies to produce complete, reliable, timely, and consistent financial information. The Other Defense Organizations-General Funds is one reporting entity included in the Department of Defense agency-wide financial statements. The entity represents a consolidation of financial information from various Defense organizations and funds that use the Treasury Index 97 symbol, also referred to as Department 97. See Appendix B for a list of Other Defense Organizations-General Funds. During FY 2001, the Other Defense Organizations received 64.3 billion of budget authority. This report addresses, in summary form, the major deficiencies that continue to undermine the reliability of the reporting process. Although DoD and Defense Finance and Accounting Service have taken steps to improve the financial reporting process of the Other Defense Organizations, deficiencies related to financial systems, management controls, budgetary reporting, and trial balance reporting continue to exist. These deficiencies continue to exist because DoD and Defense Finance and Accounting Service have not fully implemented corrective actions recommended in prior reports issued by the Inspector General of the Department of Defense.
- Administration and Management
- Economics and Cost Analysis