Navy Financial Reporting of Government-Owned Materials Held by Commercial Shipyard Contractors

摘要

We performed this audit in support of the Chief Financial Officers Act of 1990, as amended by the Government Management Reform Act of 1994. In March 2000, the Under Secretary of Defense (Comptroller) requested that the Defense Contract Audit Agency (DCAA) conduct an audit to validate the value of Government-owned property held by contractors. DCAA agreed to assist the DoD inspector General in examining the processes and requirements for reporting operating materials and supplies. DCAA will report on the Government-owned property held by contractors based on a review of 36 contractors throughout DoD. The FY 1999 Navy financial statements reported $29.3 billion of operating materials and supplies, which included $11.3 billion of Government-owned materials held by contractors. Government-owned materials are materials furnished by the Government that are intended to be incorporated in, or attached to, a deliverable end item or materials consumed in the performance of the contract.