Accession Number : ADA333382

Title :   Financial Reporting: DoD's Fiscal Year 1996 Financial Statements Inventory Reporting Does Not Meet Standards

Corporate Author : GENERAL ACCOUNTING OFFICE WASHINGTON DC ACCOUNTING AND INFORMATION MANAGEMENT DIV

PDF Url : ADA333382

Report Date : DEC 1997

Pagination or Media Count : 14

Abstract : DOD did not fully comply with SFFAS No. 3 in fiscal year 1996. Its consolidated and component financial statements misclassified operating materials and supplies and some equipment as inventory and did not include all operating materials and supplies. For fiscal year 1996, the Army, Navy, and Air Force general fund financial statements collectively reported $115.6 billion of inventory. The Army and Air Force did not report any amounts for operating materials and supplies and the Navy reported only $27,000. One reason for these errors is that DOD'S Guidance on Form and Content of Financial Statements for Fiscal Year 1996 Financial Activity and its accounting policy misinterpreted and were not consistent with the accounting standard. As a result, DOD'S fiscal year 1996 financial statements overstated inventory, understated operating materials and supplies, and overstated expenses.

Descriptors :   *DEPARTMENT OF DEFENSE, ACCOUNTING, FINANCIAL MANAGEMENT, INVENTORY.

Subject Categories : Economics and Cost Analysis
      Government and Political Science

Distribution Statement : APPROVED FOR PUBLIC RELEASE