Inventory Revaluation for the Navy Working Capital Fund by the Naval Supply Systems Command

摘要

This report is the first in a series of reports on our audit work for the FY 2000 Department of the Navy Working Capital Fund Financial Statements. We performed this audit in response to the Chief Financial Officers Act of 1990, as amended by the Federal Financial Management Act of 1994. For FY 1999, the Department of the Navy reported $ 15.2 billion in net inventory using the allowance method to approximate historic cost. In the future, DoD plans to use the historical cost method of valuing inventories for presentation on the annual financial statements after developing and implementing necessary changes in inventory accounting and management systems. However, continued improvements in valuing inventory, as discussed in this audit report, will improve the accuracy of reported inventory.