department of defense agency financial report fiscal year 2012

More documents

Recommendations

Info

Department of Defense Agency Financial Report for FY 2012 3. FMFIA Section 4, Financial System Nonconformance Weaknesses: The Department requires financial system conformance with federal requirements and reports. The Department reported one weakness that includes a wide range of pervasive problems related to financial systems. Table 1c shows the resulting weakness. Table 1c. Conformance with Financial Management System Requirements (FMFIA Section 4) Statement of Assurance: Systems do not conform to financial management system requirements Non-Conformances 1. Financial Management Systems Total System Conformance Material Weaknesses Ref Table 2 Beginning Balance A-50 New Resolved Reassessed Ending Balance 9 1 1 9 1 1 Table 1c-1 provides the description and corrective action plan for the material weakness related to internal control over financial systems. TABLE 1c-1. FY 2012 Internal Control over Financial Systems Material Weakness Material Weaknesses 1 Financial Management Systems: The Department’s financial systems were originally developed to meet the requirements of budgetary accounting and do not provide the capability to record costs and assets in compliance with current accounting standards. Improvements to the current systems environment are complicated by the use of and reliance upon many mixed systems that are not well integrated. Year Identified DoD Components FY 2001 Departmentwide Corrective Actions Most DoD Components have embarked on an effort to implement a compliant, end-to-end financial management system, anchored by ERPs that provide the core financial system as well as replacing many of the mixed (feeder) systems. Target Correction Year FY 2017 Addendum A
Department of Defense Agency Financial Report for FY 2012 SUMMARY OF FINANCIAL STATEMENT AUDIT The following Table 2 lists the DoD IG’s identified 13 areas of material weakness in the Department’s financial statement reporting. Table 2. Summary of Financial Statement Audit Audit Opinion: Disclaimer Restatement: Yes Areas of Material Weakness Beginning Balance A-51 New Resolved Consolidated 1 Accounts Payable 1 1 2 Accounting Entries 1 1 3 Environmental Liabilities 1 1 4 Government Property in Possession of Contractors Ending Balance 1 1 5 Intragovernmental Eliminations 1 1 6 Operating Materials and Supplies 1 1 7 Reconciliation of Net Cost of Operations to Budget 1 1 8 Statement of Net Cost 1 1 9 Financial Management Systems 1 1 10 Fund Balance with Treasury 1 1 11 General Property, Plant & Equipment 1 1 12 Inventory 1 1 13 Accounts Receivable 1 1 Total Material Weaknesses 13 13 FEDERAL FINANCIAL MANAGEMENT IMPROVEMENT ACT The DoD IG and the audit agencies within the Military Services have reported on DoD’s noncompliance with FFMIA. The DoD’s noncompliance is due to its reliance upon legacy financial management systems by the various Components. These legacy financial systems, for the most part, do not comply with the wide range of requirements for systems compliance, in accordance with FFMIA and therefore do not provide the necessary level of assurance that the core financial system data or the mixed systems information can be traced to source transactional documentation. Table 3 reflects DoD’s compliance with FFMIA. Table 3. Compliance with Federal Financial Management Improvement Act Agency Auditor Overall Substantial Compliance No No 1. System Requirements No No 2. Accounting Standards No No 3. U.S. Standard General Ledger at Transaction Level No No Addendum A
Page 1 and 2:
DEPARTMENT OF DEFENSE AGENCY FINANC
Page 3 and 4:
Department of Defense Agency Financ
Page 6:
Page 9 and 10:
Page 11 and 12:
Page 13 and 14:
Page 15 and 16:
Page 17 and 18:
Page 19 and 20:
Page 21 and 22:
Page 23 and 24:
Page 25 and 26:
Page 27 and 28:
Page 29 and 30:
Page 31 and 32:
Page 33 and 34:
Page 35 and 36:
Page 37 and 38:
Page 39 and 40:
Page 41 and 42:
Page 43 and 44:
Page 45 and 46:
Page 47 and 48:
Page 49 and 50:
Page 51 and 52:
Page 53 and 54:
Page 55 and 56:
Page 57 and 58:
DEPARTMENT OF DEFENSE AGENCY FINANC
Page 59 and 60:
Page 61 and 62:
Page 63 and 64:
Page 65 and 66:
Page 67 and 68:
Page 69 and 70:
Page 71 and 72:
Page 73 and 74:
Page 75 and 76:
Page 77 and 78:
Page 79 and 80:
Page 81 and 82:
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160: DEPARTMENT OF DEFENSE AGENCY FINANC
Page 161 and 162: Department of Defense Agency Financ
Page 209: Department of Defense Agency Financ
Page 229 and 230: DEPARTMENT OF DEFENSE AGENCY FINANC
Page 259 and 260: Contributors to the Agency Financia
show all

department of defense agency financial report fiscal year 2012

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?