Audit of Report of the U.S. Army Nonappropriated Fund Employee Retirement Plan for Fiscal 1980
AFMD-82-65: Published: Jun 29, 1982. Publicly Released: Jun 29, 1982.
- Full Report:
GAO examined the statement of financial position of the U.S. Army Nonappropriated Fund Employee Retirement Plan as of September 30, 1980. The evaluation included the related statements of changes in net assets available for benefits and in the present value of accumulated plan benefits for the year then ended.
GAO found the following omissions which needed correction: (1) neither the accounting and funding policies describing the methods and assumptions used to determine the value of investments (including insurance contracts) nor the percentage of participants' contribution were presented; (2) Plan provisions regarding the refund of employee contributions plus interest were not presented, although refunds accounted for almost half of the amount shown for benefits paid; (3) the Plan administrator did not separately disclose the amount of present employees' accumulated contributions (including interest) as of the year then ended; (4) the order of allocating net assets in the event of Plan termination was omitted, including the fact that the Plan's accumulated benefits are not insured; and (5) the Plan administrator did not identify related party transactions with the Army Morale Support Fund and the Army Medical Life Fund nor disclose the fact that the Plan and these funds are under the same managerial control. Except for these omissions, GAO found the financial and related statements of the Plan to be in conformity with generally accepted accounting principles applied on a consistent basis.