DOD Financial Management: Greater Visibility Needed to Better Assess Audit Readiness for Property, Plant, and Equipment

Abstract

Since 1997, DOD has been required to prepare audited financial statements. However, long-standing and pervasive financial management weaknesses have precluded DOD from being auditable. The National Defense Authorization Act (NDAA) for Fiscal Year 2010 mandated that DOD develop and maintain a plan that among other things, describes the actions needed to ensure that its consolidated financial statements are audit ready by September 30, 2017.The Senate report accompanying the NDAA for Fiscal Year 2015 included a provision for GAO to review DODs plans to achieve audit readiness with respect to its PP and E. This report addresses the reported status of DODs and the military services (1) audit readiness assertions for PP and E asset accountability and (2) plans for valuing PP and E assets. GAO reviewed the FIAR Plan Status Reports and Guidance, documentation of assertions of audit readiness, and federal accounting standards and proposed changes, and interviewed DOD officials.

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Document Details

Document Type
Technical Report
Publication Date
May 01, 2016
Accession Number
AD1013649

Entities

People

  • William J. Cordrey

Organizations

  • United States Government Accountability Office

Tags

Communities of Interest

  • Ground and Sea Platforms
  • Space
  • Weapons Technologies

DTIC Thesaurus Topics

  • Accounting
  • Acquisition
  • Air Force
  • Congress
  • Department Of Defense
  • Electronic Mail
  • Financial Management
  • Fleet Ballistic Missiles
  • Government Furnished Equipment
  • Governments
  • House Of Representatives
  • Military Equipment
  • Money
  • National Governments
  • National Security
  • United States
  • United States Government

Fields of Study

  • Business

Readers

  • Defense Acquisition Program Management
  • Defense Financial Management and Audit.