|
USD(C)/CFO acknowledged that DOD financial management and feeder systems do not substantially comply with Federal financial management system requirements. DOD financial management and feeder systems were not designed to adequately support various material amounts on the financial statements. These deficiencies in financial management and feeder systems, as well as inadequate DOD business processes, prevent DOD from collecting and reporting financial and performance information that is accurate, reliable, and timely." [DOD IG Report 2010-002, p. 4]
Example#1: Audit of a military equipment system identified internal control weaknesses that affected processing and reporting of military equipment financial data. The weaknesses found were related to entity-wide security program planning and management, access controls, application software development and change controls, system software, segregation of duties, and service continuity. The deficient controls created system vulnerabilities that potentially jeopardize the integrity, confidentiality, and availability of data reported by the system.
Example#2: The Component did not accurately and efficiently transfer construction-in-process costs between its accounting and property management systems. As a result, the Component could not ensure the accuracy and completeness of the acquisition costs of its real property assets. Also, the Component expended resources to perform duplicate entry of cost data into its systems. The Component needs to be able to transfer construction costs from the construction agent to the installations that will account for the real property assets. In addition, the Component should develop system capabilities in accounting systems to capture all of the relevant construction costs and send acquisition costs to the property management system when placing assets in service. |