Recognition of Revenues and Expenses in the Defense Business Management System
Abstract
This report is the third in a series of reports on reliability of information supporting the Navy Working Capital Fund Financial Statements and related internal controls. The previous reports dealt with inventory revaluation and our endorsement of the Naval Audit Service disclaimer of opinion on the FY 2000 Navy Working Capital Fund Financial Statements. We performed the audit in response to the Chief Financial Officers Act of 1990, as amended by the Federal Financial Management Act of 1994, which requires the DoD to provide audited financial statements to the Office of Management and Budget. The Supply Management activity group is the largest of the nine activity groups in the Navy Working Capital Fund, and it reported $5.4 billion in revenue and $5.5 billion in expenses for FY 2000. The Supply Management activity group used the Defense Business Management System (DBMS) to account for $304 million of revenue from services provided and operating expenses of $1.2 billion. Approximately $413 million of the total operating expenses were personnel related and excluded from our review. The remaining $760 million of operating expenses were the types of expenses tested by our audit. Revenue from sale of inventory and related cost of goods sold were accounted for in other accounting systems.
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 27, 2001
- Accession Number
- ADA389623
Entities
Organizations
- Office of the Inspector General, U.S. Department of Defense