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
10 (MILSTRIP Orders):
The Department
cannot effectively
account for
transactions and
balances in the
Military Standard
Requisitioning and
Issues Procedures
(MILSTRIP) Orders
procure-to-pay
process.
11 Reimbursable Work
Orders (Grantor):
The Department
cannot effectively
account for
transactions and
balances supporting
the Reimbursable
Work Orders –
Grantor procure-topay
process.
12 Transportation of
People: The
Department cannot
effectively account
for transactions and
balances supporting
the transportation
of people.
Year
Identified
DoD
Components
FY 2011 Departmentwide
FY 2011 Departmentwide
FY 2011 Departmentwide
A-39
Corrective Actions
Components are
documenting processes
and key controls and
identifying and testing
key controls in the
requisition and issue of
material, as well as
testing the interfacing
data between the
logistics receipt
processing systems and
the financial systems.
Components also are
verifying the timely
recording of accounts
payable to ensure the
payment does not occur
prior to physical receipt
of material and validating
that returns are
authorized and, if
appropriate, a financial
transaction is recorded.
Components are
identifying and testing
key controls related to
the process, to include
orders accepted;
expenses; receivables
and collections; recorded
manually or automated;
and those organizational
roles or systems
performing these
transactions.
Components are
developing plans to
address ‘segregation of
duties’ internal control
issues within the
transaction system due to
overlapping permissionlevel
assignments, as
well as demonstrating
effective information
technology general and
application controls.
Target
Correction
Year
FY 2014
FY 2014
FY 2014
Addendum A