Financial Reporting: Navy's 1986 Consolidated Report on Financial Position Is Unreliable
AFMD-89-18
Published: Apr 06, 1989. Publicly Released: Apr 06, 1989.
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Highlights
GAO reviewed the Department of the Navy's fiscal year 1986 Consolidated Report on Financial Position to determine its compliance with GAO and Department of the Treasury annual financial reporting requirements.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of the Navy | The Secretary of the Navy should direct the Navy Comptroller to: (1) prepare the report on financial position based on general ledger account data rather than budget execution documents; and (2) monitor and take action necessary to ensure adherence to existing procedures to reconcile balances of property accounting activities with detailed property record balances contained in the real property management system. |
Closed – Implemented
The Navy implemented the Department of Defense Uniform Chart of Accounts in the Navy Headquarters Financial System and is using that system to prepare its reports on financial position. The Navy has also completed its monitoring for compliance with existing procedures.
|
| Department of the Navy | The Secretary of the Navy should direct the Commander, Naval Facilities Engineering Command, to adhere to existing procedures requiring accounting documents containing the cost status of real property being constructed to be issued to property accounting activities for reconciliation purposes. |
Closed – Implemented
The Naval Facilities Engineering Command has reiterated its procedures and monitored the Engineering Field Division's compliance with those procedures.
|
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Topics
Agency reportsFederal agency accounting systemsFinancial managementFinancial recordsFunds managementGovernment guaranteed loansInternal controlsNoncomplianceReal property acquisitionReporting requirements