Financial Management: DoD Has Not Responded Effectively to Serious, Long-Standing Problems
Abstract
We are pleased to be here today to discuss financial management in the Department of Defense (DOD), including its implementation of the Chief Financial Officers (CFO) Act of 1990 (Public Law lOl576). Over the past several years, we have testified before this and other congressional committees on the results of our financial audits of the Army and the Air Force, and on other DOD financial management issues. We have just completed our second comprehensive evaluation of the Army's financial operations and will be discussing the results of that work today. Our reports and testimonies have identified widespread and significant problems in DOD's financial management operations, systems, and controls. Equally disturbing has been DOD's slow response to the problems Andy weaknesses we have reported. In particular, the adequacy of DOD's systems of internal controls to safeguard the Department's resources from waste, mismanagement, fraud, and abuse continues to be a major concern. We recently reported to the Secretary of Defense that DOD's fiscal year 1992 Federal Managers' Financial Integrity Act (FMFIA) report does not sufficiently and clearly disclose extensive and deep-rooted weaknesses in its internal control systems. Weaknesses in fundamental controls, such as those discussed in this testimony, have led to millions of dollars of losses and inefficiencies for DOD.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jul 01, 1993
- Accession Number
- AD1169065
Entities
People
- Charles Arthur Bowsher
Organizations
- United States Government Accountability Office