Return to Article: Government's record of failed financial audits remains unbroken
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7603
It doesn't surprise me about this story! When the squeeze is put on the upper levels of management & military leaders to be fiscally responsible and stop robbing peter to pay paul, then maybe we will be able have balanced books!!!
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7587
Our government has only been requiring internal audits for seven years!? Unbelievable.
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7577
"It changed the way we did business and gave a lot more focus on financial management," said Ed Verburg, who served as deputy chief financial officer at Treasury while the CFO Act was being implemented. As for the lack of a clean audit, he said, "The federal government is just very young in this process."
It should not change the way anyone does business - it only changes the way that the financial aspects of the business are reported! The CFO act empowered OMB to set an accounting standard. For whatever reason the OMB set the corporate accrual accounting standard as the system to adopt for government. That is ridiculous on its face and Mr Walker should bew smart enough to see that. Changing a funds accounting system to an accrual system is not simply changing the numbers reported but involves establishment of an entire new system that take several years! For example, reporting historical cost (accounting standard) for inventories involves setting up an whole new process to capture and keep historic cost. However, for management purposes histoic cost is meaningless. Inventories need to be kept at replacement cost for budget and performance purposes - historic cost is useless. Likewise, the accounting standards themselves (FFASB)are just plain bad! The DoD comtroller is not issuing accounting guidance but is asking the functionals to tell them what to issue. Even when everyone follows DoD financial reporting guidance they will not be compliant.
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