Assistant Secretary of the ArmyFinancial Management and

Comptroller

Joint Reconciliation Program

November 20, 2003

Data Integrity of Army Personal Property

2

Financial Reporting Overview

Army prepares quarterly financial statements for OSD, OMB and Congress.

The data reported in the Army’s financial statements presents the annual performance and year-end values that are subject to external audit.

The objectives of financial reporting include: Providing reliable and relevant financial data to Army leaders and

decision makers.

Providing reasonable knowledge of the Army’s business and economics.

Providing comparable and consistent information.

3

Personal Property is reported into the Army’s financial statements from four systems:

Army Medical Department Property Accounting System (AMEDDPAS) solely used by MEDCOM

Automated Personal Property Management System (APPMS) solely used by USACE

Defense Medical Logistics Standard Support (DMLSS) is currently replacing AMEDDPAS

Defense Property Accountability System (DPAS) used by all MACOMs except MEDCOM and USACE

As of 30 SEP 2003, Army Personal Property was reported at an acquisition value of $4.2B with a depreciated book value of $1.1B

Financial Reporting Personal Property

4Financial Reporting IssuesPersonal Property

Capital assets not being depreciated

Assets with erroneous residual values

Lack of visibility of Government furnished equipment

Lack of visibility of internal use software

Lack of annual inventory of assets

5

Capital Assets Not Being Depreciated

$54,415

$9,862

$30,281$27,196

$41,073

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

FY02 4QTR FY03 1QTR FY03 2QTR FY03 3QTR FY03 4QTR

108

42

206

139

78

0

50

100

150

200

250

FY02 4QTR FY03 1QTR FY03 2QTR FY03 3QTR FY03 4QTR

Value(in thousands)

Numberof Records

Financial Reporting MetricsPersonal Property

6

Residual Value on Capital Assets

$267

$1,452

$536

$896

$1,745

$0$200$400$600$800

$1,000$1,200$1,400$1,600$1,800$2,000

FY02 4QTR FY03 1QTR FY03 2QTR FY03 3QTR FY03 4QTR

12

31

44

1612

05

101520253035404550

FY02 4QTR FY03 1QTR FY03 2QTR FY03 3QTR FY03 4QTR

Value(in thousands)

Financial Reporting MetricsPersonal Property

Numberof Records

7

Government Furnished Equipment on DPAS

$738

$344

$0$200$400$600$800

$1,000$1,200$1,400$1,600$1,800$2,000

FY02 4QTR FY03 4QTR

Note: Estimated Value of Army GFE is $5 billion

160

71

050

100150200250300350400450500

FY02 4QTR FY03 4QTR

Value(in thousands)

Financial Reporting MetricsPersonal Property

Numberof Records

(in thousands)

8

Internal Use Software on DPAS

$119

$28

-$10

$10

$30

$50

$70

$90

$110

$130

$150

FY02 4QTR FY03 4QTR

64

50

0102030405060708090

100

FY02 4QTR FY03 4QTR

Value(in thousands)

Financial Reporting MetricsPersonal Property

Numberof Records

9

Assets on DPAS Reported as NotInventoried Within Three Years

(as of September 2003)

Number of Records

Value of Records

Percent of Total Records

1,047,633 $1.7 billion 12%

Financial Reporting MetricsPersonal Property