Financial Management: Internal Controls Over Compiling and Reporting Environmental Liabilities Data

摘要

Who Should Read This Report and Why. DoD civilians and unifinished officers responsible for environmental cost estimating and financial reporting should read this report. It discusses internal controls over compiling and reporting cost-o-complete estimates for environmental liabilities included in the Air Force annual financial statements. Background. This audit is required by Public Law 101-576, Chief Financial Officers Act of 1990, as amended by the Federal Financial Management Act of 1994. This report discusses the adequacy of internal controls used to compile and report $7.4 billion of environmental liabilities and environmental disposal liabilities data on Note 14 of the Air Force FY 2004 Annual Financial Statements. Specifically, we address the adequacy of the control environment and control activities over compiling Defense Environmental Restoration Program and non-Defense Environmental Restoration Program data for active installations, and Base Realignment and Closure data for inactive installations. Environmental liabilities include estimated amounts for future cleanup of contamination resulting from waste disposal methods, leaks, spills, and other past activities that have created public health or environmental risks. Two Components within the Air Force are responsible for calculating and reporting cost-to-complete estimates for environmental liability data in Note 14 of the annual financial statements. Headquarters, United States Air Force Office of the Civil Engineer Environmental Division manages and reports Defense Environmental Restoration Program and non-Defense Environmental Restoration Program cost-to-complete Environmental liability estimates for active installations. The Air Force Real Property Agency manages and reports cost-to-complete environmental liability estimates for Base Realignment and Closure installations. In performance and accountability reports for FYs 2002, 2003, and 2004, DoD identified environmental liabilities as a s.