Department of Defense Progress in Financial Management Reform
Abstract
I appreciate the opportunity to discuss the status of financial management at the Department of Defense (DOD). This is the third year that we have participated in such a hearing before this Subcommittee and we believe that your sustained commitment to financial management reform government wide and at DOD, in particular, has resulted in steady improvement we have seen across government. At the same time, as we testified before the Subcommittee on March 31, 2000, on the same results of our review of the fiscal year 1999 Financial Report of the U.S. Government significant financial systems weaknesses, problems with fundamental recordkeeping and financial reporting, incomplete documentation, and weak internal controls, including computer controls, continue to prevent the government from accurately reporting a significant portion of its assets, liabilities, and costs. Material financial management deficiencies identified at DOD, taken together, continue to represent the single largest obstacle that must be effectively addressed to achieve an unqualified opinion on the U.S. government's consolidated financial statements. DOD's vast operations--with an estimated $1 trillion in assets, nearly $1 trillion in reported liabilities and a reported net cost of operations $378 billion in fiscal year 1999--have a tremendous impact on the government's consolidated reporting.
Document Details
- Document Type
- Technical Report
- Publication Date
- May 09, 2000
- Accession Number
- ADA377076
Entities
People
- Jeffrey C. Steinhoff
Organizations
- United States Government Accountability Office