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![handle is hein.gao/gaobaacqb0001 and id is 1 raw text is:
DCCUMENT RESUME
03435 - [A233159]
[Approval of the Design of the Department of the Navy Field
Activity Level System, General Accounting, Fleet (Surface) ].
FGHSD-77-50; B-159797. Jujy 14, 1977. 2 pp. + 4 enclosures (15
pp.).
Pcport to Secretary, Department of Defense; by Elmer B. Staats,
Ccm-ticller General.
Issue Area: Accounting and Financial Reporting (2800).
Contact: Financial and General Management Studies Div.
Budget Function: Miscellaneous: Financial. Manage;aent and
Information Systems (1002).
Organizbticn Concerned: Department of the Navy.
The design of the Department of .he Navy Field Activity
Level System, General Accounting, Fleet (Surface), was approved
as requested by the Assistant Secretary of Defense (Comptroller)
on June 21, 1977. The adequacy of the automatic data processing
aspects of the system design was evaluated as to internal
controls, audit trails, data integrity, and consistency with the
account. ng specifications. Findings/Conclusions: The system
design deviates Lrom accrual accounting principles by charging
travel expenses at the time the travel orders are issued. This
approval is granted with the understanding that the revision
recently made in the Department of Defense (DOD) Accounting
Guidance Handbook, which requires that travel be recorded as an
expense in the accounting period in vhich performance occurs,
will be incorporated in the Navy design documentation at an
early date. lo maintain the approved status of the design, any
significant changes to the system Aesign require approval. Any
planned changes to the design should be discussed with GAO
representatives to determine whether or not they are
significant. The system is currently in operation. At some
future date GAO will examine selected portions of the system to
determine whether it is functioning effectively and in
accordance with the approved design. Recommendations: The
Department cf the Navy internhl auditors should periodically
review the system to assure that it is operating as designed and
that the revision made to the DOD Accounting Guidance Handbook
is implemented. (SC)](ViewImageLocal?handle=hein.gao/gaobaacqb0001&div=1&collection=&method=preview&ext=.png&size=3)