Navy Did Not Develop Processes in the Navy Enterprise Resource Planning System to Account for Military Equipment Assets.

摘要

Our overall objective was to determine whether amounts reported in the Defense Departmental Reporting System were supported by business processes in the Navy Enterprise Resource Planning (ERP) system for the Aircraft, Shipbuilding, and Weapons Procurement appropriations. We found that Department of the Navy Office of Financial Operations officials did not use the Navy ERP system to support $416 billion in military equipment assets reported out of the Defense Departmental Reporting System-Audited Financial Statements. This occurred because Office of Financial Operations officials did not reengineer the business process to record military equipment assets in the Navy ERP system and did not use the asset management functionality for military equipment asset management in the Navy ERP system. As a result, Navy officials spent $870 million to implement the Navy ERP system and still did not correct the preexisting military equipment material weakness. In addition, the Navy's unauditable military equipment assets increased the risk that DoD will not achieve its goal of audit readiness by FY 2017. We recommend that the Assistant Secretary of the Navy (Financial Management and Comptroller) do the following: reengineer the business process used to record military equipment and correct the existing material weakness in military equipment valuation and implement processes in the Navy Enterprise Resource Planning system to properly record and support military equipment assets in accordance with DoD Regulation 7000.14- R, 'DoD Financial Management Regulation,' volume 4, chapter 6. We also recommend that the Department of the Navy Chief Management Officer require the Department of Navy Office of Financial Operations, in conjunction with the Navy Enterprise Resource Planning System Program Office, to develop a business process reengineering plan that accounts for military equipment assets, and considers the Navy Enterprise Resource Planning system as one of the possible solutions.