Financial Reporting

Defense Agencies' Reports on Financial Position Need To Be Improved Gao ID: AFMD-88-19 April 14, 1988

GAO reviewed the Department of Defense's (DOD) compliance with GAO and Department of the Treasury annual reporting requirements, to: (1) determine whether DOD encountered any problems in implementing the requirements; and (2) identify actions DOD should take to improve compliance.

GAO found that DOD: (1) did not develop the required guidelines for compiling financial reports; (2) did not verify the accuracy of the data in its reports to Treasury, which contained computational errors; (3) submitted only four of the five required agency-level reports; (4) overstated its assets by $395 million, liabilities by $11.6 million, and equity by $250.1 million in its general and deposit fund consolidated report; (5) omitted 46 accounts from its consolidated report; (6) did not comply with accounting standards and requirements; and (7) did not require the use of general ledger data.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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