Summary Report on Financial Reporting of Government Property in the Custody of Contractors.
Abstract
This report summarizes the weaknesses identified by a DoD-wide audit performed by the Inspector General, DoD; Army Audit Agency; Naval Audit Service; and Air Force Audit Agency on the financial reporting of Government property in the custody of contractors. The reported amount of Government property in the custody of contractors has remained around $90 billion (acquisition value) over the last 3 fiscal years. Since our review of the Contract Property Management System and the FY 1996 DoD financial statements, financial managers in each Military Department have adjusted the way data from the Contract Property Management System are used for financial reporting. However, the system and the way the data are entered into financial statements have not changed. The amount of Government property in the custody of contractors remains material to the DoD financial statements, and the National Defense line on the Government-wide financial statements is material to the Consolidated Financial Statements of the United States. The inability of DoD to resolve the reporting of Government property in the custody of contractors will impede the ability of the DoD and the Federal Government to obtain a favorable opinion on future financial statements. The overall audit objective was to determine whether account balances for Government property in the custody of contractors were complete, accurate, and included in the financial statements of the Military Departments and Defense agencies. We also assessed management controls affecting the financial reporting of Government property and compliance with applicable laws and regulations.
Document Details
- Document Type
- Technical Report
- Publication Date
- Oct 15, 1998
- Accession Number
- ADA367889
Entities
Organizations
- Office of the Inspector General, U.S. Department of Defense