Financial Audit: Aggressive Actions Needed for Air Force to Meet Objectives of the CFO Act
AFMD-92-12
Published: Feb 19, 1992. Publicly Released: Feb 19, 1992.
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Highlights
GAO reviewed: (1) the Air Force's financial management operations for fiscal year (FY) 1989; (2) Department of Defense (DOD) efforts to correct deficiencies in Air Force financial operations; and (3) actions the Air Force and DOD need to take to meet objectives of the Chief Financial Officers Act.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | In view of the long-term nature of the Corporate Information Management initiative in developing standardized, DOD-wide systems, the Secretary of Defense should direct the DOD Comptroller to give high priority to improving the accuracy and reliability of financial information included in the General Accounting and Finance System. |
Closed – Implemented
A CFO implementation branch has been formed at the Defense Finance and Accounting Service (DFAS), Denver Center, to oversee ongoing corrective actions, and a corrective action plan has been developed to address weaknesses in GAFS. Implementation of the general ledger development component is behind schedule. No resources were assigned to this effort by DFAS. The Air Force Audit Agency issued disclaimers of opinions on the Air Force's fiscal years 1992 and 1993 financial statements due to significant uncertainties regarding the reliability of account data and accounting systems.
|
| Department of Defense | Until an improved system is available, the Secretary of Defense should direct the DOD Comptroller to develop methodologies to use data from the Air Force fund control system to develop and report more reliable costs for weapons systems, particularly for newer systems. |
Closed – Implemented
During FY 1992, the Air Force and DFAS began a project to revalue the recorded cost of weapons systems. The Air Force annual financial statement report for FY 1992 contains procedures to revalue the recorded cost. The Air Force has updated the reported values of the recently acquired aircraft and will continue to revalue through FY 1994. However, the Air Force Audit Agency reported that the Air Force's reported costs of assets, including weapons systems, in its fiscal years 1992 and 1993 financial statements were not reliable.
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| Department of Defense | Until an improved system is available, the Secretary of Defense should direct the DOD Comptroller to develop procedures for establishing values for older systems by appraisal or another reasonable basis. |
Closed – Implemented
During FY 1992, the Air Force and DFAS began a project to revalue the recorded cost of weapons systems. The Air Force annual financial statement for FY 1992 contains procedures to revalue the recorded cost. The Air Force has updated the reported values of the recently acquired aircraft and will continue to revalue through FY 1994. However, the Air Force Audit Agency reported that the Air Force's reported costs of assets, including aircraft, in its fiscal year 1992 and 1993 financial statements were inaccurate.
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Topics
Air Force suppliesChief financial officersCost accountingFederal agency accounting systemsFinancial management systemsFinancial recordsFinancial statement auditsIndustrial fundsInternal controlsInventory control systemsMilitary cost control