Distribution Depot Revenues.
Abstract
This is the seventh and final report in a series of reports on issues related to FY 1996 revenues in the Defense Business Operations Fund. In December 1996, the Under Secretary of Defense (Comptroller) announced that the Defense Business Operations Fund would be realigned into five working capital funds; one of these funds is the Defense-Wide Working Capital Fund, which includes the Distribution Depot business area. That realignment does not affect the issues discussed in this report. The overall revenue accounts audit objective was to determine whether revenues on 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 examined revenues recognized by the Distribution Depot business area. In addition, we assessed management controls as applicable to the overall audit objective. The Distribution Depot business area was not reimbursed for all transportation and container consolidation point services. Customers were only billed $126 million of the $275.5 million of costs incurred. As a result, the Distribution Depot business area lost approximately $150 million in FY 1996, and the lack of full reimbursement was not disclosed in the FY 1996 financial statements.
Document Details
- Document Type
- Technical Report
- Publication Date
- Feb 13, 1998
- Accession Number
- ADA368310
Entities
Organizations
- Office of the Inspector General, U.S. Department of Defense