|
The Component did not accurately report the amount of its sponsor-owned material at the location. About $130.7 million of the assets were either misclassified or overstated. Also, about $84.1 million in assets not owned by the Component were included in the amounts reported. The Component inventory controls did not ensure that sponsor-owned material was properly reported and updated in a timely manner. In addition, sponsor-owned material was being retained and stored beyond allowable time periods. As a result of these conditions, the Component was not in compliance with provisions of SFFAS No. 3 as it relates to operating materials and supplies. The Component sponsor also lacked total asset visibility over sponsor-owned material at the location. |