Reporting and Disclosing Intragovernmental Transactions for the FY 1997 DOD Consolidated Financial Statements

摘要

This report discusses the reporting and disclosing of intragovernmental transactions on FY 1997 DoD Component and FY 1997 DoD consolidated Financial Statements. The 1994 Act also required the Department of the Treasury to prepare Government-wide audited financial statements starting in FY 1997. To comply with the law, DoD prepared financial statements for the 16 reporting entities to be included in the FY 1997 DoD Consolidated Financial Statements. The DoD's total assets reported in FY 1997 were $1.3 trillion, and total revenues were $270 billion. When an entity prepares consolidated financial statements, it should eliminate the effects of financial transactions among its components and should report only transactions with outside parties. DoD reported $5.5 billion in receivables, $92 billion in revenues, and $1.7 billion in unearned revenues that were eliminated from the FY 1997 DoD Consolidated Financial Statement. The overall audit objective was to determine whether the FY 1997 DoD Consolidated Financial Statements were presented fairly in accordance with Office of Management and Budget Bulletin No. 94-01, 'Form and Content of Agency Financial Statements', November 16, 1993, as supplemented by Office of Management and Budget Bulletin No. 97-01, 'Form and Content of Agency Financial Statements', October 16, 1996. There was an issuance of a disclaimer of opinion on the FY 1997 DoD Consolidated Financial statements. Statements on February 27, 1998. We issued our report on internal controls and compliance with laws and regulations on June 22, 1998. Our specific audit objective was to determine whether intragovernmental transactions were presented fairly in the FY 1997 DoD Consolidated and DoD Component financial statements. We also evaluated the management control program for the reporting and disclosing of intragovemmental transactions on the FY 1997 DoD Consolidated Financial Statements.