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The Component did not accurately report the sponsor-owned material it included in the FY 2006 Financial Statements. The Component misclassified the material and overstated its reported value at the four locations we visited. More than $2.5 million of sponsor-owned material was improperly classified and reported as operating materials and supplies, including $1.9 billion of special tooling and test equipment, $481.6 million of aviation support equipment held for Foreign Military Sales, and $113.7 million of general support equipment. The C/C/A needed to ensure that its financial reporting of sponsor-owned material complied with SFFAS Nos. 3 and 6. Also, it needed to perform a complete reconciliation of its sponsor-owned material inventory amounts recorded in the asset management system with the actual amounts of on-hand inventory. |