Financial Reporting Issues Related to the Navy's Direct Vendor Delivery Initiative
AIMD-00-312R: Published: Sep 13, 2000. Publicly Released: Sep 13, 2000.
- Full Report:
GAO provided information on how a Direct Vendor Delivery (DVD) contract would affect the Navy's financial reporting, focusing on: (1) whether accounting and auditing standards would require DVD contractors to report individual transactions through the Transaction Item Reporting (TIR) system; and (2) what level of reporting would be required under a DVD contract to meet accounting and auditing standards.
GAO noted that: (1) accounting standards or audit requirements would not necessitate TIR reporting; (2) the needs of inventory managers and the Department of Defense (DOD)'s Total Asset Visibility requirements should be the primary consideration when considering the timeliness and method of updating inventory records; (3) as for the level of detail necessary to meet audit requirements, the briefing outlines the information necessary to provide a sufficient audit trail for DOD management and external auditors; and (4) more specifically, if periodic reporting under a DVD contract is timely, accurate, and creates an audit trail back to a source document, it would be acceptable for audit purposes.