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NCJ Number: 66093 Add to Shopping cart Find in a Library
Title: DEFENSE'S ACCOUNTING FOR ITS CONTRACTS HAS TOO MANY ERRORS - STANDARDIZED ACCOUNTING PROCEDURES ARE NEEDED
Author(s): ANON
Corporate Author: US Comptroller General
United States of America
Date Published: 1980
Page Count: 19
Sponsoring Agency: Azimuth Inc.
Fairmont, WV 26554
US Comptroller General
Washington, DC 20548
Sale Source: Azimuth Inc.
1000 Technology Drive, Suite 3120
Fairmont, WV 26554
United States of America
Language: English
Country: United States of America
Annotation: RESULTS AND RECOMMENDATIONS ARE REPORTED FROM AN EXAMINATION OF THE DEFENSE DEPARTMENT'S CONTRACT ACCOUNTING.
Abstract: NONSTANDARD CONTRACT ACCOUNTING PROCEDURES USED BY DEFENSE COMPONENTS CAUSE SUBSTANTIAL ERRORS IN REPORTING, RECORDING, AND CONTROLLING CONTRACT FINANCIAL DATA; MILLIONS OF DOLLARS ARE SPENT FOR UNNECESSARY PERSONNEL AND OTHER COSTS DUE TO DUPLICATION OF ACCOUNTING FUNCTIONS. THE MILITARY STANDARD CONTRACT ADMINISTRATION PROCEDURES FOR THE FINANCIAL CONTROL OF CONTRACTS WERE TO BE IMPLEMENTED 9 YEARS AGO, BUT STILL HAVE NOT BEEN MADE FULLY OPERATIONAL. THE GENERAL ACCOUNTING OFFICE RECOMMENDS THAT THE SECRETARY OF DEFENSE REQUIRE THE DEFENSE CONTRACT ADMINISTRATION SERVICES REGIONS TO ENSURE THE ACCURACY OF THE FINANCIAL TRANSACTIONS PROCESSED AND SENT TO THE MILITARY SERVICES. FURTHER, THE IMPLEMENTATION OF THE MILITARY STANDARD CONTRACT ADMINISTRATION PROCEDURES SHOULD BE REQUIRED IN ALL DEFENSE SYSTEMS INVOLVED WITH CONTRACT ACCOUNTING AND MANAGEMENT. THE ASSISTANT SECRETARY OF DEFENSE (COMPTROLLER) SHOULD REQUIRE SPECIFIC TIMETABLES FROM THE MILITARY SERVICES REGARDING IMPLEMENTATION DATES FOR THE STANDARD PROCEDURES. THE COMPTROLLER SHOULD ALSO MONITOR THE IMPLEMENTATION AND REQUIRE CORRECTIVE ACTION WHERE NEEDED. DEFENSE CONCURRED WITH THE RECOMMENDATIONS, WHILE QUESTIONING WHETHER THE FINANCIAL TRANSACTIONS REVIEWED WERE REPRESENTATIVE OF ALL DEFENSE CONTRACTS. THE APPENDIX CONTAINS DEFENSE'S REPLY TO THE REPORT. (AUTHOR ABSTRACT MODIFIED--RCB)
Index Term(s): Efficiency; Financial management; Grants or contracts; US Armed Forces; US Government Accountability Office (GAO)
Note: THERE IS A CHARGE FOR MORE THAN ONE COPY. REPORT TO THE CONGRESS OF THE UNITED STATES BY THE COMPTROLLER GENERAL
To cite this abstract, use the following link:
http://www.ncjrs.gov/App/publications/abstract.aspx?ID=66093

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