Financial Management: Naval Air Systems Command Financial Reporting of Non-Ammunition Operating Material and Supplies for FY 2002

摘要

DoD defines OM&S as tangible personal property that is to be consumed in normal operations. The Department of the Navy (Navy) non-ammunition OM&S is made up of appropriations purchase account principal end items, sponsor-owned material, appropriations purchase account secondary inventory items, and residual assets. The total value of the non-ammunition OM&S that was reported by the Navy for FY 2001 was $25.4 billion. The Naval Air Systems Command reported $16.5 billion of non-ammunition OM&S consisting of appropriations purchase account principal end items and sponsor-owned material. The Navy policy to include principal end items as OM&S led the Navy to incorrectly report National Defense Property, Plant, and Equipment assets as OM&S. As a result, the Navy FY 2002 beginning balance for the OM&S account included approximately $6.9 billion of principal end item assets that should be reported as National Defense Property, Plant, and Equipment. The Navy will need to identify and correct the remaining principal end item assets that are reported on the OM&S balance prior to issuing FY 2002 financial statements.