Financial Management: DoD Process for Reporting Contingent Legal Liabilities
Abstract
Personnel within the Office of the Secretary of Defense, other DoD Components responsible for preparing the annual financial statements, and legal counsel who provide legal representations regarding contingent liabilities should read this report. It identifies areas where DoD and its Components have not fully complied with Federal financial accounting standards and are not consistent in computing and disclosing contingent legal liabilities. The report is intended to convey systemic concerns across DoD and to provide DoD management and legal counsel the basis for developing policies and procedures for reporting and disclosing contingent legal liabilities in accordance with Federal financial accounting and reporting reqmrements. Background. We performed the audit as part of our continuing audit work in support of the Chief Financial Officers Act of 1990, as amended by the Federal Financial Management Act of 1994. Auditing standards require auditors to obtain information from management, supported by legal counsel, regarding pending or threatened litigation and unasserted claims and assessments that could result in a potential loss material to the financial statements. The Government Accountability Office, which audits the U.S. Government's consolidated financial statements, expressed concern that DoD is not providing the required evidential mailer to support statements it is making about pending or threatened litigation, possible claims, and assessments against the Government in DoD financial statements.
Document Details
- Document Type
- Technical Report
- Publication Date
- Feb 24, 2006
- Accession Number
- ADA471934
Entities
People
- Carl L. Adams
- Charles O. Egu
- Cheri L. Reiser
- Denise E. Baidridge
- Kristy M. Schenck
- Marvin L. Peek
- Patricia A. Marsh
- Paul J. Granetto
- Scott S. Brittingham