United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office Accounting and Information Management Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1999-04-14 monographic deposited born digital 30 p. GA 1.13:T-AIMD/NSIAD-99-145 https://www.govinfo.gov/app/details/GAOREPORTS-T-AIMD-NSIAD-99-145 P0b002ee180390daa f:a499145t DGPO 2010-08-12 2011-03-24 GAOREPORTS-T-AIMD-NSIAD-99-145 machine generated eng fdlp REPORT GAOREPORTS-T-AIMD-NSIAD-99-145 T-AIMD/NSIAD-99-145 Financial management systems Internal controls Defense cost control Logistics Accountability Military inventories Inventory control systems DOD Biennial Financial Management Improvement Plan DOD Joint Defense Total Asset Visibility Program Testimony AIMD NSIAD Pursuant to a congressional request, GAO discussed the steps needed to improve financial management at the Department of Defense (DOD), focusing on: (1) the impact of financial management weaknesses on DOD's ability to efficiently and economically carry out its operations; (2) efforts DOD has initiated, and additional actions that are necessary, to improve financial management systems and controls in the short term; and (3) enhancements needed in updating DOD's Biennial Financial Management Improvement Plan--its long-term blueprint for financial management reform.<p/>GAO noted that: (1) DOD primarily relies on various logistical systems to carry out its important stewardship responsibility over an estimated $1 trillion in physical assets; (2) these systems are the primary source of information for: (a) maintaining visibility over assets to meet military objectives and readiness goals; and (b) financial reporting; (3) however, these systems have material weaknesses that, in addition to hampering financial reporting, impair DOD's ability to: (a) maintain central visibility over its assets; (b) safeguard assets from physical deterioration, theft, or loss; and (c) prevent the purchase of assets already on hand; (4) these weaknesses can seriously diminish the efficiency and economy of the military services' support operations; (5) in response to this problem, the department initiated programs or renewed its emphasis on implementing existing measures that would improve asset visibility and tracking; (6) in addition, DOD renewed its Total Asset Visibility initiative to provide department-level access to timely, accurate information on the status, location, and movement of its personnel, equipment and supplies--including weapon systems, secondary inventory, and ammunition; (7) DOD Comptroller has been developing and implementing short-term steps in collaboration with DOD's functional and audit communities, the Office of Management and Budget, and GAO; (8) several of the actions included in DOD's short-term plan, along with additional short-term actions necessary to provide a solid foundation for the department's financial management improvement efforts, include: (a) ensuring feeder system data accuracy; (b) implementing accounting policy procedures; (c) instilling fundamental controls; and (d) training financial management personnel; (9) DOD's Biennial Plan represents a significant landmark because it includes a discussion of the importance of the programmatic functions of personnel, acquisition, property management, and inventory management to the department's ability to support consistent, accurate information flows to all information users; (10) modifications to the plan are needed if DOD is to achieve the full range of reforms needed; and (11) to accomplish this, DOD's planned update should include: (a) a revised concept of operations to reflect the full range of DOD's financial management operations; (b) specific plans on shared servicing and outsourcing strategies; and (c) concepts established in the Clinger-Cohen Act for effectively implementing the technology initiatives contained in the plan. https://www.govinfo.gov/content/pkg/GAOREPORTS-T-AIMD-NSIAD-99-145/html/GAOREPORTS-T-AIMD-NSIAD-99-145.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-T-AIMD-NSIAD-99-145/pdf/GAOREPORTS-T-AIMD-NSIAD-99-145.pdf GAO/T-AIMD/NSIAD-99-145 https://www.govinfo.gov/app/details/GAOREPORTS-T-AIMD-NSIAD-99-145 Testimony GAO/T-AIMD/NSIAD-99-145; DOD Financial Management: More Reliable Information Key to; Financial management systems Internal controls Defense cost control Logistics Accountability Military inventories Inventory control systems DOD Biennial Financial Management Improvement Plan DOD Joint Defense Total Asset Visibility Program Public Law 105-85 Public Law 105-261