Accounting for Economy Act Orders by the Navy Working Capital Fund Organizations
Abstract
This audit was performed in response to the Chief Financial Officers Act of 1990, as amended by the Federal Financial Management Act of 1994. This is the first report from our audit of DoD accounts payable and addresses an Assistant Secretary of the Navy (Financial Management and Comptroller) policy that affects the Navy working capital fund accounting and reporting requirements for all of its organizations. Accounts payable is used to record amounts owed for goods and services received but for which payment has not been made. As of September 30, 2000, the Navy working capital fund reported accounts payable of $986 million. That amount did not include accounts payable arising from Economy Act orders placed with the Navy working capital fund using directly cited $1.15 billion of customer funds which should have been recorded and accounted for on a reimbursable basis. The Economy Act, as codified in section 1535, title 31, United States Code, provides a Federal agency or major organizational unit with the authority to place orders for goods or services with another Federal agency or major organizational unit. Orders placed using directly cited funds are posted, accounted for, and disclosed in the financial statements of the customer.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jul 18, 2001
- Accession Number
- ADA392818
Entities
Organizations
- Office of the Inspector General, U.S. Department of Defense