department of defense agency financial report fiscal year 2012

Department of Defense Agency Financial Report for FY 2012
Table 1a-1. FY 2012 Internal Control over Financial Reporting Material Weaknesses
Material Weaknesses
5 Health Care
Liabilities: The
current military
health system
financial processes
cannot collect
sufficient
transaction-level
cost and
performance
information for
procedures
performed in
military treatment
facilities.
6 Civilian Pay: The
Department cannot
effectively account
for transactions and
balances in the
civilian pay process.
7 Military Pay: The
Department cannot
effectively account
for transactions and
balances in the
military pay
process.
Year
Identified
DoD
Components
A-37
Corrective Actions
FY 2003 MERHCF; SMA Medical Components are
implementing procedures
to improve coding and
financial reconciliations
for military treatment
facilities’ operations as
well as developing and
implementing a
methodology to
reimburse military
treatment facilities on a
per capita basis. This
methodology will be
similar to arrangements
with managed-care
providers.
Implementation of SMA
ERPs will improve overall
financial reporting.
FY 2011 Departmentwide
FY 2011 Departmentwide
Components are
addressing the reliability
and existence of
supporting
documentation retained
within the applicable
payroll, personnel and
time and attendance
systems. They also are
identifying, assessing,
and testing IT general
and application controls.
In addition, Components
are also defining and
prioritizing sub-processes
into assessable units and
evaluating the sufficiency
of the current
SSAE 16/SAS 70 efforts.
Components are
developing processes to
reconcile supporting
documents to the general
ledger on a repeatable
basis in order to audit
around the numerous
micro- applications used
to transfer data from the
Defense Joint Military Pay
System to the general
ledgers.
Target
Correction
Year
FY 2017
FY 2014
FY 2014
Addendum A