Financial Management: Improved Reporting Needed for DOD Problem Disbursements
AIMD-97-59
Published: May 01, 1997. Publicly Released: May 01, 1997.
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Highlights
Pursuant to a legislative requirement, GAO reviewed the Department of Defense's (DOD) reporting on the amount of its problem disbursements, focusing on whether DOD's reporting is producing accurate and consistent data needed to effectively measure its progress and manage the reduction of its problem disbursements. GAO did not audit the validity of the underlying disbursement data.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | To provide for accurate and consistent reporting of DOD's problem disbursements, the Secretary of Defense should ensure that the Under Secretary of Defense (Comptroller) revises DFAS reporting guidance to include: (1) reporting problem disbursements from detailed transactional data at the DFAS center level, which would allow DOD to maintain a source of management data necessary to identify, quantify, and resolve its problems and would provide for more meaningful calculations of amounts; (2) detailed instructions addressing the offsetting of positive and negative transactions and the logical relationships, such as voucher number, accounting line, or reversal indicator, of these transactions; (3) reporting all transactions that are rejected by edit routines as problems regardless of age, consistent with current DOD Comptroller guidance; and (4) reporting additional problems such as recurring and routine suspense transactions citing closed or invalid disbursing offices and decommissioned ships. |
Closed – Implemented
In June 1997, DFAS revised its reporting guidance and began to report absolute amounts from detailed transactions in its monthly in-transit report to address GAO's concerns. In addition, DFAS Cleveland, the accounting center which is responsible for reporting the Navy's problem disbursements, began to report all suspense transactions that were: (1) rejected regardless of age; and (2) not previously reported, such as routine and recurring transactions citing closed offices and decommissioned ships. This action is responsive to the recommendation. Because DFAS has taken action, the recommendation is being closed.
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| Department of Defense | To provide for accurate and consistent reporting of DOD's problem disbursements, the Secretary of Defense should ensure that the Under Secretary of Defense (Comptroller) establishes adequate quality controls over the collection, compilation, and reporting of problem disbursements at DFAS to enhance the credibility of problem disbursement reports. At a minimum, these controls should: (1) include documentation of the process, procedures, and sources of data used for preparing problem disbursement reports at all reporting centers and headquarters; and (2) establish an accountability process to include reviewing and approving the compilation of the reported amounts at all reporting levels, enforcing existing guidance for classifying and aging transactions, and reporting total problem disbursement amounts. |
Closed – Implemented
After GAO's briefing to DFAS in November 1996, DFAS Headquarters established permanent positions to monitor the reporting of problem disbursements by its Centers. As a result of monitoring DFAS Indianapolis, the accounting center responsible for reporting Army problem disbursements--DFAS Indianapolis complied with existing guidance for classifying and aging problem disbursement transactions. Because DOD does not intend any further action, this recommendation is being closed.
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Accounting proceduresBudget obligationsBudget outlaysData integrityFederal agency accounting systemsFinancial managementFinancial recordsInternal controlsQuestionable paymentsReporting requirements