Disbursing Operations Directorate at Defense Finance and Accounting Service Indianapolis Operations

摘要

DoD personnel responsible for processing Intra-Governmental Payment and Collection System (IPAC) transactions, reporting IPAC suspense account balances, and reconciling statements-of-deposit differences should read this report. It is the first in a series of reports related to Defense Finance and Accounting Service Indianapolis Operations (referred to as 'DFAS Indianapolis') disbursing operations. This report discusses internal control weaknesses regarding the processing of IPAC transactions, adjustments to IPAC suspense accounts, and the reconciliation of the 'Statement of Differences-Deposits' report. DFAS Indianapolis provides finance and accounting support to the Army and other Defense agencies. DFAS Indianapolis Disbursing Operations Directorate performs a full range of disbursing operations for all organizations receiving departmental accounting support from DFAS Indianapolis. Significant Disbursing Operations Directorate accounting activities include processing transactions through IPAC and expenditure reporting, including reconciliation of the 'Statement of Differences-Deposits.' From November 2006 through March 2007, the Disbursing Operations Directorate processed 13.6 million disbursements totaling $44.1 billion. Results. The Disbursing Operations Directorate did not process IPAC transactions in a timely manner. As a result, Federal agencies that provide goods and services to DoD were denied use of funds until payment was received (Finding A). The Disbursing Operations Directorate reported incorrect suspense account balances and used journal vouchers to improperly reduce suspense account balances for unprocessed IPAC transactions. As a result, inaccurate amounts were reported to the U.S. Treasury; on the Army and other Defense agencies' financial statements; and on monthly suspense account reports (Finding B).