Financial Reporting: DoD's Fiscal Year 1996 Financial Statements Inventory Reporting Does Not Meet Standards

Abstract

DOD did not fully comply with SFFAS No. 3 in fiscal year 1996. Its consolidated and component financial statements misclassified operating materials and supplies and some equipment as inventory and did not include all operating materials and supplies. For fiscal year 1996, the Army, Navy, and Air Force general fund financial statements collectively reported $115.6 billion of inventory. The Army and Air Force did not report any amounts for operating materials and supplies and the Navy reported only $27,000. One reason for these errors is that DOD'S Guidance on Form and Content of Financial Statements for Fiscal Year 1996 Financial Activity and its accounting policy misinterpreted and were not consistent with the accounting standard. As a result, DOD'S fiscal year 1996 financial statements overstated inventory, understated operating materials and supplies, and overstated expenses.

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Document Details

Document Type
Technical Report
Publication Date
Dec 01, 1997
Accession Number
ADA333382

Entities

Organizations

  • United States Government Accountability Office

Tags

Communities of Interest

  • Ground and Sea Platforms

DTIC Thesaurus Topics

  • Accounting
  • Air Force
  • Ammunition
  • Comptrollers
  • Computer Programs
  • Department Of Defense
  • Electronic Mail
  • Financial Management
  • Governments
  • Guidance
  • Inventory
  • Materials
  • Money
  • Munitions
  • National Security
  • Navy
  • Regulations

Fields of Study

  • Business

Readers

  • Defense Financial Management and Audit.
  • Government Contracting/Procurement.
  • Logistics and Supply Chain Management.