Audit Report

07-02-2014
Financial Management
Improvements Needed in the General Fund Enterprise Business System Budget-to-Report Business Process (Project No. D2013-D000FL-0156.000)
DODIG-2014-090

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Objective

We performed this audit to determine whether the General Fund Enterprise Business System (GFEBS) Program Management Office (PMO) implemented the DoD Business Enterprise Architecture Budget-to-Report (B2R) Business Process to properly support the Army General Fund (AGF) Statement of Budgetary Resources (SBR).

Finding

GFEBS PMO and Army Budget Office (ABO) personnel did not implement the B2R business process to properly support the AGF SBR. Specifically, GFEBS PMO personnel did not configure GFEBS to properly record at least $6.3 billion in AGF B2R transactions. In addition, ABO personnel did not accurately record $103.2 billion of AGF B2R transactions in GFEBS and did not record 22 FY 2013 AGF appropriations, totaling $176.5 billion, in a timely manner. This occurred because Office of the Assistant Secretary of the Army (Financial Management and Controller) (OASA[FM&C]) personnel did not provide adequate oversight to verify that the GFEBS PMO configured the system to properly record B2R transactions; OASA(FM&C) and GFEBS PMO personnel did not create adequate procedures for some B2R business processes; and ABO personnel were not aware of their responsibilities after the implementation of GFEBS. In addition, GFEBS was not the main source of data for the FY 2013 AGF SBR because OASA(FM&C) personnel decided to keep most prior-year funding in legacy systems instead of converting the data into GFEBS. As a result, GFEBS B2R data is unreliable and the Army is at risk of not meeting the FY 2014 SBR audit readiness date. The GFEBS fourth quarter FY 2013 trial balance contained $6.3 billion in abnormal balances related to budgetary General Ledger Account Codes. In addition, Defense Finance and Accounting Service personnel could not use the GFEBS budgetary trial balance data to prepare the FY 2013 AGF SBR, which reported $266.5 billion of Total Budgetary Resources, without making $141.3 billion of adjustments to the GFEBS trial balance.

Recommendations

Army officials should verify that the GFEBS posting logic documentation is accurate and complete, and use it to validate GFEBS general ledger account postings; direct GFEBS PMO to reconfigure GFEBS to properly record B2R transactions; provide ABO with training on performing their B2R responsibilities using GFEBS; create procedures that address the entire B2R process; use GFEBS to execute all AGF appropriations; and assess how implementing corrective actions for the findings identified in this report will impact the timeline for asserting audit readiness of the AGF SBR.

Management Comments and Our Response

We request that the Assistant Secretary of the Army (Financial Management and Comptroller) provide additional comments on Recommendations 1.d and 1.e.


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