Triannual Review Processes Need Improvement at Three Naval Budget Submitting Offices
Abstract
Our objective was to determine whether selected budget submitting offices (BSOs) within the Department of the Navy (DoN) performed the triannual review (TAR) of unliquidated obligations and unfilled orders in accordance with applicable regulations. This is the second of a series of reports on the Navy s TAR. Naval Air Systems Command (NAVAIR), U.S. Marine Corps (USMC), and Naval Facilities Engineering Command (NAVFAC) did not support the validity and accuracy of obligations reviewed during the TAR. Specifically, of the 209 nonstatistically selected obligations reviewed, BSO personnel did not have documentation that supported the accuracy and validity of 200 obligations, valued at $201.7 million, for: 59 NAVAIR obligations valued at $123.1 million; 60 USMC obligations valued at $27.5 million; and 81 NAVFAC obligations valued at $51.1 million. This occurred because the Navy Office of Budget did not issue standard operating procedures for the TAR. NAVAIR, USMC, and NAVFAC did not have standard operating procedures to perform and document the TAR. Each BSO performed its triannual review differently and used different types of documentation that did not support its review. The DoD Financial Management Regulation (DoD FMR) does not specify what documents support the TAR. In addition, the Navy Office of Budget did not perform quality assurance reviews to confirm the accuracy and validity of obligations. As a result of NAVAIR, USMC, and NAVFAC s inability to perform a reliable TAR, DoN may lose the opportunity to use funds for other purposes. The TAR is a key internal control to ensure management has reliable budget information. The auditability of DoN s financial statements could be impaired.
Document Details
- Document Type
- Technical Report
- Publication Date
- May 18, 2015
- Accession Number
- ADA621509
Entities
Organizations
- Office of the Inspector General, U.S. Department of Defense