Triannual Review Processes Need Improvement at Three Naval Budget Submitting Offices
OFFICE OF THE INSPECTOR GENERAL (DEPARTMENT OF DEFENSE) ARLINGTON VA
Pagination or Media Count:
Our objective was to determine whether selected budget submitting offices BSOs within the Department of the Navy DoN performed the triannual review TAR of unliquidated obligations and unfilled orders in accordance with applicable regulations. This is the second of a series of reports on the Navy s TAR. Naval Air Systems Command NAVAIR, U.S. Marine Corps USMC, and Naval Facilities Engineering Command NAVFAC did not support the validity and accuracy of obligations reviewed during the TAR. Specifically, of the 209 nonstatistically selected obligations reviewed, BSO personnel did not have documentation that supported the accuracy and validity of 200 obligations, valued at 201.7 million, for 59 NAVAIR obligations valued at 123.1 million 60 USMC obligations valued at 27.5 million and 81 NAVFAC obligations valued at 51.1 million. This occurred because the Navy Office of Budget did not issue standard operating procedures for the TAR. NAVAIR, USMC, and NAVFAC did not have standard operating procedures to perform and document the TAR. Each BSO performed its triannual review differently and used different types of documentation that did not support its review. The DoD Financial Management Regulation DoD FMR does not specify what documents support the TAR. In addition, the Navy Office of Budget did not perform quality assurance reviews to confirm the accuracy and validity of obligations. As a result of NAVAIR, USMC, and NAVFAC s inability to perform a reliable TAR, DoN may lose the opportunity to use funds for other purposes. The TAR is a key internal control to ensure management has reliable budget information. The auditability of DoN s financial statements could be impaired.
- Administration and Management
- Economics and Cost Analysis
- Logistics, Military Facilities and Supplies