Internal Controls and Compliance With Laws and Regulations for Expense Account Line Items on the FY 1996 Defense Business Operations Fund Consolidated Financial Statements

摘要

In December 1996, the Under Secretary of Defense (Comptroller) announced that the DBOF would be eliminated and separate working capital funds would be established. Under the working capital fund concept, each of the DoD components will be responsible for managing the functional and financial aspects of their support functions and activities and retain their individuality in managing operations. This restructuring does not materially affect the issues discussed in this report. The primary audit objective was to determine whether the expenses on the FY 1996 DBOF 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. In addition, we determined whether controls were adequate to ensure that the consolidated financial statements were free of material error. We also assessed compliance with selected laws and regulations for transactions and events that have a direct and material effect on the expense accounts on the financial statements. Additionally, we followed up on conditions related to expenses in previous audits of the DBOF financial statements.