Navy Public Works Centers Compliance With GAO's Accounting System Design

GAO surveyed the industrial fund accounting system for the Navy Public Works Centers at the Center in San Diego, California, to determine if it was being operated in accordance with the system design approved by the Comptroller General in March 1974. GAO also reviewed and evaluated changes to the system since its approval and tested operating procedures and controls over billing of costs to customers for completed work.

The accounting system is being operated in accordance with the approved system design and is in compliance with the principles, standards, and related requirements currently prescribed by the Comptroller General. The system design approved by the Comptroller General in 1974, contains the following requirements, which have not been fully implemented: (1) funding by customers of major maintenance, repairs, and alterations in advance of the incurrence of such costs by the industrial fund which are restricted to a 12 month period beginning with the date of approval of the project; and (2) separately identified funded and unfunded liability for unused annual leave of employees of revolving fund activities.