|
DOD disclosed that it cannot accurately identify most of its Intragovernmental transactions by customer because DOD systems do not track the buyer and seller data needed to match related transactions. In addition, DOD is unable to fully reconcile Intragovernmental transactions with all Federal partners. DOD acknowledged that its inability to reconcile most Intragovernmental transactions results in adjustments that cannot be fully supported. [DOD IG Report 2010-002, p. 12]
Example#1: Components are unable to identify intragovernmental transactions by customer, the Components cannot ensure that they are properly eliminating or disclosing all intragovernmental accounts payable in the financial statements, and the Components adjust their non-DOD intragovernmental accounts payable amounts to agree to seller-side balances for financial statement reporting. As a result, reported accounts payable balances do not agree with the transaction detail in supporting accounting systems.
Example#2: Aged Accounts Payable are not reviewed to identify and resolve balances that may no longer be valid or warrant investigation
Example#3: DOD records and reports accounts payable balances in its financial statements without reconciling to transaction detail in supporting accounting systems.
Example#4: Procedures for accounting recognition of unbilled purchases of goods and services are not adequate.
Example#5: The actual or constructive receipt or acceptance of goods and services should be the basis for recording accounts payable. Internal controls are not adequate to ensure the Components always follow this policy. |