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Department of Defense: Implications of Financial Management Issues

  Premium   Download PDF Now (34 pages)
Report Type Reports and Testimonies
Report Date July 20, 2000
Report No. T-AIMD/NSIAD-00-264
Subject
Summary:

Material financial management weaknesses at the Defense Department (DOD) continue to represent the single largest obstacle to achieving an unqualified opinion on the U. S. government's consolidated financial statements. So far, no major part of DOD has been able to pass the test of an independent audit because of pervasive weaknesses in the military's financial management systems, operations, and controls. The lack of such key controls and information not only hampers DOD's ability to produce timely and accurate financial information but also impairs efforts to improve the economy and efficiency of its operations. DOD has made genuine progress in many areas, and the DOD Comptroller and his counterparts have shown a strong commitment to addressing the department's serious financial management problems. However, major problems remain that are pervasive, long-standing, deeply rooted, and complex in nature.

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