Military Traffic Management Command Financial Reporting of Property, Plant, and Equipment.
Abstract
The overall audit objective was to determine whether the property, plant, and equipment accounts in the FY 1996 Defense Business Operations Fund consolidated financial statements were presented fairly in accordance with the "other comprehensive basis of accounting" described in Office of Management and Budget Bulletin No. 94-01, "Form and Content of Agency Financial Statements, November 16,1993. For this portion of the audit, we reviewed the FY 1996 balances in the MTMC property, plant, and equipment accounts. We also assessed management controls as they applied to the overall audit objective. The MTMC attempted to improve its reporting of property, plant, and equipment values for the FY 1996 Defense Business Operations Fund financial statements. To that end, MTMC reconciled logistics records with financial records, noted changes, and reported the changes to the Defense Finance and Accounting Service. However, $183 million of the $387 million reflected in the property, plant, and equipment accounts was not supported by documentation. Also, $73.3 million ($61.5 million in additions and $ 11.8 million in decreases) of corrections to reported property, plant, and equipment values, constituting a net financial statement error of $49.7 million, were not processed by the Defense Finance and Accounting Service. As a result, the MTMC property, plant, and equipment accounts were materially misstated, and inaccurate financial data could be used to make management decisions.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 14, 1998
- Accession Number
- ADA368277
Entities
Organizations
- Office of the Inspector General, U.S. Department of Defense