Compilation of FY 1996 Air Force Consolidated Financial Statements at the Defense Finance and Accounting Service Denver Center

摘要

The Defense Finance and Accounting Service (DFAS) Denver Center maintained accounting records and prepared the FY 1996 financial statements for the Air Force. More than $342 billion in total assets was reported at year's end in these statements, and total revenues for the year exceeded $59 billion. The Air Force Audit Agency disclaimed an opinion on these statements. Our audit focused on the Chief Financial Officers Reporting System used by the DFAS Denver Center to compile the FY 1996 Air Force financial statements. The primary audit objective was to determine whether the DFAS Denver Center consistently and accurately compiled financial data from field activities and other sources for the FY 1996 Air Force financial statements. We also determined whether FY 1996 ending balances reported by the DFAS Denver Center were supportable for use as beginning balances in the FY 1997 financial statements. In addition, we evaluated the DFAS Denver Center's compliance with applicable laws and regulations and its internal control program as related to our objectives. Although significant financial management challenges remain, the DFAS Denver Center completed corrective actions on 16 of 28 prior recommendations made by the Inspector General, DoD, to improve the process of compiling the Air Force financial statements.