Department Of The Navy Annual Financial Report PDF Download

Our audit focused on the Defense Finance and Accounting Service Kansas City Center, which compiled financial information and prepared both budgetary reports and internal financial statements for the Marine Corps, and on the Defense Finance and Accounting Service Cleveland Center, which consolidated the financial information for Navy and Marine Corps and compiled the financial statements for the Department of the Navy. The Navy financial statements reported assets of $453.4 billion, liabilities of $13.3 billion, total revenues of $63.2 billion, and expenses of $63.3 billion for the fiscal year ended September 30, 1996. The Naval Audit Service was unable to render an opinion on the Statement of Financial Position because of inadequate financial systems and incomplete and unauditable supporting records. We concurred with the Naval Audit Service. (For details, see "Department of the Navy Fiscal Year 1996 Annual Financial Report: Report on Auditor's Opinion," March 1, 1997.) The overall audit objective was to determine whether the Defense Finance and Accounting Service (DFAS) Cleveland and Kansas City Centers consistently and accurately compiled financial data from field activities and other sources for the FY 1996 Navy General Fund and Navy Defense Business Operations Fund financial statements. We did not review the compilation of the Navy Defense Business Operations Fund financial statements because the final version of the statements was not issued by the Department of the Navy and DFAS Cleveland Center in time to perform the audit field work. In addition, we planned to determine whether FY 1996 ending balances were supportable for use as beginning balances for FY 1997.