Hotline Allegations Regarding Accounting for the Defense Information Systems Agency Working Capital Fund
Abstract
We performed this audit in response to a complaint made to the Defense Hotline. The complainant alleged that the Defense Finance and Accounting Service (DFAS) improperly accounted for funds in the Defense Information Systems Agency (DISA) Working Capital Fund. The complainant alleged that more than $400 million in cross-disbursements (those made by organizations that did not perform accounting for DISA) could not be matched with liabilities, a substantial amount of expenses may not have been recorded, and that both DFAS and DISA delayed in resolving these problems to manipulate the DISA financial statements, making the operating results and reimbursable rates more favorable. The allegations were related to the Defense Enterprise Computing Centers business area, which is one of the two business areas within the DISA Working Capital Fund. The FY 2000 financial statements for the Defense Enterprise Computing Centers business area reported assets of $205.5 million, liabilities of $23.8 million, and expenditures of $586.1 million. Cross-disbursements have created DoD-wide problems in matching disbursements and collections to proper supporting documentation. Disbursements that cannot be matched to supporting documentation and accepted by the accounting station are often referred to as undistributed or problem disbursements. A discussion of the allegations and conclusions is in Appendix B.
Document Details
- Document Type
- Technical Report
- Publication Date
- May 21, 2001
- Accession Number
- ADA391576
Entities
Organizations
- Office of the Inspector General, U.S. Department of Defense