Defense Agencies Initiative Did Not Contain Some Required Data Needed to Produce Reliable Financial Statements

Abstract

We determined whether the Defense Agencies Initiative (DAI) fulfilled selected functional capabilities needed to generate accurate and reliable financial data and reported data in compliance with United States Standard General Ledger (USSGL) requirements. Due to the disestablishment of the Business Transformation Agency, Defense Logistics Agency assumed responsibility for DAI on August 1, 2011. DAI did not fulfill functional capabilities needed to generate reliable financial data. DAI officials did not consistently transmit 9 of 53 attributes needed to generate reliable financial information. This occurred because DAI officials did not follow guidance when configuring DAI reporting attributes and did not prevent DAI from processing incomplete manual vouchers. DAI officials did not demonstrate that DAI could record transactions in compliance with the Standard Financial Information Structure Transaction Library (SFIS). Of 1,612 account codes, 1,551 were missing. This occurred because DAI officials did not have complete system documentation. DAI officials did not include 3 out of 1,064 accounts in the DoD Standard Chart of Accounts (SCOA). This occurred because DAI officials did not believe all accounts were necessary because the organizations that used DAI did not use these accounts. The root cause of these problems was that the Deputy Chief Management Officer (DCMO) and the Under Secretary of Defense (Comptroller)/Chief Financial Officer [USD(C)/CFO] did not ensure DAI officials properly configured DAI before deploying the system. As a result, financial data were unreliable, creating uncertainty on how $402 million out of $9.3 billion was reported on FY 2011 financial statements for the Defense Technical Information Center, Missile Defense Agency, and the Uniformed Services University of the Health Services.

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Document Details

Document Type
Technical Report
Publication Date
Apr 19, 2013
Accession Number
ADA580058

Entities

People

  • Lorin T. Venable

Organizations

  • Office of the Inspector General, U.S. Department of Defense

Tags

Communities of Interest

  • Biomedical
  • Weapons Technologies

DTIC Thesaurus Topics

  • Acquisition
  • Business Administration
  • Department Of Defense
  • Financial Management
  • Health Services
  • Information Operations
  • Information Systems
  • Management Personnel
  • Money
  • Operations Management
  • Organizational Structure
  • Program Management
  • Systems Management
  • Technical Information Centers
  • Test And Evaluation
  • United States
  • Word Processors

Readers

  • Defense Financial Management and Audit.