Fund Balance With Treasury Account in the FY 1996 Financial Statements of the Defense Business Operations Fund

摘要

This audit of the Fund Balance With Treasury Account is being performed to fulfill the requirements of the 'Chief Financial Officers Act of 1990', as amended by the 'Federal Financial Management Act of 1994'. This is the third in a series of reports on issues related to cash management, or the Fund Balance With Treasury Account, in the financial statements of the Defense Business Operations Fund. The first report, Inspector General, DoD, Report No. 97-067, 'Defense Agencies Cash Management in the Defense Business Operations Fund', January 10, 1997, and the second, Inspector General, DoD, Report No. 98- 039, 'Cash Management in the Defense Working capital Funds', December 15, 1997, discussed the need for better control of cash in the Defense agencies and DoD, respectively. The DoD Fund Balance With Treasury Account balance comprises financial data reported to the Department of the Treasury by DoD and other agencies that report for DoD. These data are recorded and summarized in the Fund Balance With Treasury Account in the general ledgers of DoD organizations. The Fund Balance With Treasury Account balance is also reported in the Defense Business Operations Fund monthly reports and the Chief Financial Officers Act financial statements. The Fund Balance With Treasury Account balance is a net balance that includes funds collected, funds disbursed, and funds with Treasury. During FY 1996, the Defense Business Operations Fund reported $73.5 billion in funds collected, $74.7 billion in funds disbursed, and $5.3 billion in funds with Treasury. As of September 30, 1996, the net balance in the Fund Balance With Treasury Account for the Defense Business Operations Fund was $4.1 billion. On December 11, 1996, the Under Secretary of Defense (Comptroller) separated the Defense Business Operations Fund into four Defense Working Capital Funds. That realignment did not affect the issues discussed in this report.