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Department of Defense: Actions Needed to Improve Accounting of Intradepartmental Transactions

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Report Type Reports and Testimonies
Report Date Jan. 14, 2021
Release Date Jan. 14, 2021
Report No. GAO-21-84
Summary:

When the Department of Defense prepares its financial statements each year, transactions that occur between two DOD components (like Army and Navy) must be eliminated from the department-wide statements. For years, auditors have found that the DOD cannot adequately account for between-component transactions—including in its most recent audits for FY2019 and FY2020.

The DOD has a long-term plan to address this longstanding auditor-identified weakness, but doesn't have a clear overall strategy for the short term. Our 5 recommendations include that the DOD develop a strategy to identify short-term solutions and update applicable guidance.

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