DOD Financial Management: Ongoing Challenges with Reconciling Navy and Marine Corps Fund Balance with Treasury

Abstract

In November 2010, the Department of Defense (DOD) Inspector General (IG) issued a disclaimer of opinion on the Department of the Navy s financial statements because of pervasive, longstanding material internal-control weaknesses, including Fund Balance with Treasury (FBWT). In the federal government, an agency s FBWT account is similar in concept to a corporate bank account. The difference is that instead of a cash balance, FBWT represents unexpended spending authority in appropriations. Because DOD relies heavily on budget information for day-to-day management decisions, in August 2009, the DOD Comptroller designated the Statement of Budgetary Resources (SBR) as an audit priority. FBWT will need to be auditable in order for the SBR to be reliable. GAO was asked to determine whether the Navy and the Marine Corps have implemented effective FBWT reconciliation processes. To assess these processes, GAO analyzed Navy and Marine Corps policies and procedures for FBWT reconciliations, and met with Navy, Marine Corps, and Defense Finance and Accounting Service (DFAS) officials. GAO also tested nongeneralizable samples of FBWT transactions and adjustments and reviewed associated supporting documentation.

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Document Details

Document Type
Technical Report
Publication Date
Dec 01, 2011
Accession Number
ADA553686

Entities

Organizations

  • United States Government Accountability Office

Tags

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  • Cyber

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  • Accuracy
  • Congress
  • Department Of Defense
  • Electronic Mail
  • Financial Management
  • Governments
  • Homeland Security
  • Information Systems
  • Law
  • Marine Corps
  • National Governments
  • Security
  • Social Media
  • Systems Management
  • United States
  • United States Government
  • Websites

Readers

  • Defense Financial Management and Audit.