Naval Supply Systems Command Acts To Improve Usefulness of Financial Reports Produced by the Aviation Supply Office's Automated Allotment Accounting System

FGMSD-80-42: Published: Apr 30, 1980. Publicly Released: Apr 30, 1980.

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The need for, and usefulness of, financial reports produced by the Naval Supply Systems Command's automated Allotment Accounting System were evaluated. The System is used by the Aviation Supply Office to keep all needed financial records for the Navy Stock Fund and to produce monthly reports showing allotments, obligations, expenditures, materials on hand and in transit, and accounts payable. Problems with the System were brought to the attention of officials in 1975 and 1978, but corrective action was not taken until the GAO review was completed and a report was issued in January 1980.

Because of computer systems problems and the lack of an effective revalidation program, the automated Allotment Accounting System produced reports that were inaccurate and so detailed and voluminous that managers and operating personnel made little use of them. Due to lack of confidence in the system, the Aviation Supply Office estimated the value of assets and liabilities in preparing its fiscal 1979 budget reapportionment request. It estimated that the system overstated assets by $15.1 million and understated liabilities by $32.6 million. The cost of preparing unused reports could not be determined because the Naval Supply Systems Command and the Aviation Supply Office do not accumulate the total cost of individual reports. Revisions to the system are currently being implemented and could appreciably improve the usefulness of financial information. The formats of the unused reports were changed, and changes were made in the underlying computer systems to eliminate unneeded detailed information. A reports revalidation group has been formed to determine the continued need for, and usefulness of, the outputs of standard Naval automated accounting and management information systems.

Recommendation for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Secretary of the Navy should direct that the group, which is still in organizational stages, provide for (1) an independent, indepth assessment of managers' and operating personnel's use of computer-produced reports; and (2) effective, prompt followup action to assure that report deficiencies are corrected. The Secretary should also see that other naval commands have effective reports revalidation programs. Finally, the Secretary should designate a representative to see that the ongoing revisions to the automated Allotment Accounting System are effectively and promptly implemented and that the Naval Audit Service review the system after it becomes operational to determine its effectiveness.

    Agency Affected:

 

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