Eliminating The Category National Defense Property Plant And Equipment PDF Download

This report is intended for use by officials in the Property and Equipment Policy Office (Policy Office) in the Office of the Under Secretary of Defense for Acquisition, Technology, and Logistics. The report discusses the adequacy of the methodology for determining the value of military equipment. The Policy Office requested that we perform this examination to review the methodology it developed to accurately identify and value all military tempest. This is the second of two reports about the methodology the Policy Office developed. The first report discussed the agreed-upon procedures, auditor actions, and results. This one discusses the significant auditor findings, conclusions, and recommendations. To meet the objective of obtaining a clean audit opinion, DoD must comply with all government accounting standards, including Statement of Federal Financial Accounting Standard No. 23, "Eliminating the Category of National Defense Property, Plant, and Equipment," May 2003, which requires DoD to include the cost of its military equipment on the DoD Balance Sheet. To comply with the new standard, the Policy Office developed and began implementing a conceptual model that described the business and systems process requirements DoD believed were needed to accurately value, depreciate, and financially report military equipment. The first phase of the conceptual model, the baseline valuation, was primarily a manual effort to determine the historical cost for military equipment as of September 30, 2006.