Accession Number:

ADA499399

Title:

Defense Finance and Accounting Service Indianapolis Compilation of Other Defense Organizations General Fund Financial Data

Descriptive Note:

Audit rept.

Corporate Author:

INSPECTOR GENERAL DEPT OF DEFENSE ARLINGTON VA

Personal Author(s):

Report Date:

2009-01-23

Pagination or Media Count:

45.0

Abstract:

Personnel at Defense Finance and Accounting Service DFAS and other DoD accounting offices supporting the Other Defense Organizations general fund, and preparers and users of the DoD Agency-Wide financial statements would benefit from the results of this audit. DFAS Indianapolis DFAS-IN provides accounting and financial reporting support for 42 Other Defense Organizations general funds. DFAS-IN receives trial balance information from field accounting sites, which is used to prepare financial statements and budget reports. These 42 Other Defense Organizations general funds were a reporting component of the FY 2007 DoD Agency-Wide Financial Statements and had 140.5 billion in budget authority for FY 2007. Results of the audit show that DFAS-INs internal controls were not adequate. We identified a material internal control weakness in accounting adjustments made to Other Defense Organizations general fund accounting records. The accounting adjustments were not sufficiently supported and approved. Specifically, the controls did not ensure that accounting adjustments were properly supported, that journal entries recorded in the accounting system agreed with the control log, and that cost estimates used on journal vouchers were supported and properly classified and disclosed on the financial statements. These internal control weaknesses increased the risk that DoD materially misstated balances reported in the DoD Agency-Wide financial statements. In addition, the lack of footnote disclosures discussed in this report could mislead the users of the financial statements. The Under Secretary of Defense ComptrollerChief Financial Officer should update the DoD Regulation 7000.14-R, DoD Financial Management Regulation, to include requirements for financial statement footnote disclosures of the amounts of unresolved abnormal balances.

Subject Categories:

  • Administration and Management
  • Economics and Cost Analysis
  • Military Forces and Organizations

Distribution Statement:

APPROVED FOR PUBLIC RELEASE