DoD Financial Management Functional Strategy for Fiscal Years 2020-2024
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To achieve an unmodified opinion, MILDEPs and ODOs must maintain existence, completeness,
valuation, rights and obligations, and presentation and disclosure assertions for all GPP&E,
I&RP, and E&DL that are reported on their financial statements. Because historical
documentation to support values is lacking, alternative methods are prescribed by DoD policy.
MILDEPs and ODOs must also maintain auditable processes, systems, and controls to properly
account for property. To accomplish this, MILDEPs and ODOs must document, test, and
remediate issues that present financial statement risks.
• All accountable organizations conducted a full existence and completeness inventory and reconciliation of
capital assets to accountable property systems of record (APSRs) for Real Property
• Complete physical inventory of all WCF inventory and all general fund munitions/ordnance and uninstalled
engines in its possession
• Each DoD Component established a complete baseline of assets for government property in the possession of
contractors
• DCFO issued:
o Policy on capitalization thresholds for GPP&E
o Guidance for establishing deemed cost for I&RP and GPP&E
o Guidance related to contract financing payments for the procurement of GPP&E and I&RP
o Policy change to account for in-transit inventory
• Increased accuracy of data for
GPP&E and I&RP
• Auditable existence and
completeness baseline for real
property, I&RP, and general
equipment
• Established Property Functional
Council and multiple working
groups to support the
remediation of property related
audit issues
• Implementation of new financial
reporting requirements for real
property
• Development of inventory and
beginning balance for Joint
Strike Fighter (JSF) program’s
global pool of spares and
support equipment
• Implementing deemed cost for
valuation of GPP&E during the
approach to establishing opening
balances
• Additions to APSRs of
previously unrecorded property
in the possession of contractors
• Current policy around bulk
purchases is difficult to
• Multiple interpretations of best
methods of implementing new
DCFO policies
• Utilization of deemed cost for
valuation of GPP&E could result
in large fluctuations to GPP&E
balances
• Lack of cohesive definitions
around assets, inventory, and
property between Comptroller
and Acquisition and Sustainment
(A&S) creates confusion in
policies
• Issues with current definition of
bulk purchases may lead to audit
findings
• Utilize Property Functional Council to facilitate
communication and decision making on DoD-wide
asset related issues
• Utilize the Defense Audit Remediation Working
Group (DARWG) process to identify and coordinate
solutions for audit related issues to be implemented
across all DoD Components
• Completion of DoD-wide GPP&E, I&RP and E&DL
process control narratives to guide components to
implement controls around asset lifecycle
• Strong relationships between the FM community
and the A&S Community to confirm alignment of
DoD-wide goals
• USSGL/SFIS system compliance
• Reduction in legacy systems
Table 5 – Property Overview