Financial Management: Reliability of Weapon System Cost Reports Is Highly
Questionable (Letter Report, 10/28/93, GAO/AIMD-94-10).

The reliability of weapon system cost information in the Army's reports
to Congress and the Pentagon and in Army reports used to support
critical cost decisions is highly questionable.  This information, which
came from at least 18 disparate financial and logistics systems, (1) was
incomplete and inconsistent among systems, (2) did not include all costs
required by Army guidelines, (3) reflected unsupported adjustments, and
(4) could not be independently verified.  GAO's audit of the Army's
financial statements for fiscal year 1992 noted continuing problems with
the accuracy of weapon system cost information in the Army's logistics
systems.  As a result, Congress and other users of the reports cannot be
fully confident that reported weapon systems costs are reliable.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  AIMD-94-10
     TITLE:  Financial Management: Reliability of Weapon System Cost 
             Reports Is Highly Questionable
      DATE:  10/28/93
   SUBJECT:  Financial management systems
             Advanced weapons systems
             Data integrity
             Management information systems
             Federal property management
             Federal agency accounting systems
             Cost accounting
             Cost analysis
             Accounting procedures
             Property and supply management
IDENTIFIER:  Black Hawk Helicopter
             Bradley Fighting Vehicle
             Army Continuing Balance System-Expanded
             Abrams Tank
             Chinook Helicopter
             DOD Future Years Defense Program
             Army Master Data File
             Army Standard Financial Information System
             Standard Operations and Maintenance, Army, and Research and 
             Development System
             Army Research, Development, and Acquisition Information 
             Systems Activity System
             Army Budget Management Information System
             Army Program Optimization and Budget Execution System
             Standard Army Procurement Accounting System
             Army Operating and Support Management Information System
             
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