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Financial Management: Title 2--DBOF Real Property

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Report Type Reports and Testimonies
Report Date May 3, 1994
Report No. AIMD-94-107R
Subject
Summary:

Pursuant to an agency request, GAO reviewed whether real property used by the Defense Business Operations Fund (DBOF) should be reported on DBOF financial statements. GAO noted that: (1) real property used by Department of Defense (DOD) activities is under the jurisdiction of a military department designated by the Secretary of Defense; (2) the DOD Inspector General (IG) believes that real property is owned by the military department and should not be reported as a DBOF asset; (3) the Defense Comptroller maintains that the property should be reported on DBOF financial statements to show the full costs of all resources and assets of DBOF activities; (4) real property provides current future service capacity to DBOF; (5) DBOF maintains possession of real property through agreements which provide for DBOF possession for as long as needed, without a termination date and without reimbursement; and (6) real property represents an asset to DBOF and should be reported as such in its financial statements to show the full costs of all resources and assets used in DBOF operations.

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