Audit of Accounting Corrections on the SF 1081

Submitting OIG:

Department of Defense OIG

Date Issued:

Friday, June 25, 2021

Agency Reviewed / Investigated:

Department of Defense

Submitting OIG-Specific Report Number:

DODIG-2021-095

Component, if applicable:

Defense Finance and Accounting Service (DFAS)

Under Secretary of Defense Comptroller/Chief Financial Officer

United States Air Force (USAF)

United States Army (USA)

United States Navy (USN)

Location(s):

Agency-Wide

Type of Report:

Audit

Questioned Costs:

Funds for Better Use:

Number of Recommendations:

View Document:

Attachment	Size
DODIG-2021-095.pdf	19.8 MB

Recommendation Number	Recommendation Status	Significant Recommendation
D-2021-0095-D000FP-0002-0002.B2c	Open	No
Rec. B.2.c: The DoD OIG recommended that the Director of the Defense Finance and Accounting Service implement procedures to inform DoD Component management when the Component is charged for Defense Finance and Accounting Service errors.
D-2021-0095-D000FP-0002-0002.B2e	Open	No
Rec. B.2.e: The DoD OIG recommended that the Director of the Defense Finance and Accounting Service make the necessary corrections to the Defense Finance and Accounting Service Transaction Interface Module to post intra governmental transactions to the correct account at the point of receipt.
D-2021-0095-D000FP-0002-0002.B2f	Open	No
Rec. B.2.f: The DoD OIG recommended that the Director of the Defense Finance and Accounting Service identify other processes or systems that may be using suspense accounts to record known transactions and implement corrective actions, to include updating applicable process documentation, as appropriate.
D-2021-0095-D000FP-0002-0002.B2g	Open	No
Rec. B.2.g: The DoD OIG recommended that the Director of the Defense Finance and Accounting Service revise the Mechanization of Contract Administration Services Accounts Receivable Posting Collections standard operating procedures to include: 1. Steps to verify that the vendor refund is accurate before processing an SF 1081 transaction. 2. Steps to coordinate the refund with the DoD Component responsible for the contract. 3. A process map that depicts the updated collection process.
D-2021-0095-D000FP-0002-0003.B3	Open	No
Rec. B.3: The DoD OIG recommended that the Assistant Secretary of the Army (Financial Management and Comptroller) implement capabilities within General Fund Enterprise Business System or find alternative automated solutions to maintain an audit trail for systemically generated SF 1081 transactions. The capabilities should ensure that an adequate audit trail for system-generated transactions is readily available for management, service providers, and other stakeholders.
D-2021-0095-D000FP-0002-0004.B4a	Open	No
Rec. B.4.a: The DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD, work with the Director of the Defense Finance and Accounting Service and the DoD Components to develop, implement, and document effective internal controls within the SF 1081 certification process to ensure that certifying officers do not approve inaccurate SF 1081 transactions.
D-2021-0095-D000FP-0002-0004.B4b	Open	No
Rec. B.4.b: The DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD, work with the Director of the Defense Finance and Accounting Service and the DoD Components to ensure that certifying officers are appointed on a DD Form 577 that explains the types of transactions in each system that the certifying officer is authorized to approve.
D-2021-0095-D000FP-0002-0004.B4c	Open	No
Rec. B.4.c: The DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD, work with the Director of the Defense Finance and Accounting Service and the DoD Components to ensure that certifying officers complete all necessary training, including the Certifying Officer Legislation Foundations course and a Certifying Officer Legislation training specific to the certifying officers' mission areas.
D-2021-0095-D000FP-0002-0005.B5	Open	No
Rec. B.5: The DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD, identify and direct the appropriate official to conduct an analysis of the various cost components that the Defense Finance and Accounting Service uses to compute the rate it charges DoD customers for its services. From this analysis, identify and implement improvements to the Defense Finance and Accounting Service operations to reduce the DoD's cost of accounting and financial management operations.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

D-2021-0095-D000FP-0002-0002.B2c

Open

Rec. B.2.c: The DoD OIG recommended that the Director of the Defense Finance and Accounting Service implement procedures to inform DoD Component management when the Component is charged for Defense Finance and Accounting Service errors.

D-2021-0095-D000FP-0002-0002.B2e

Open

Rec. B.2.e: The DoD OIG recommended that the Director of the Defense Finance and Accounting Service make the necessary corrections to the Defense Finance and Accounting Service Transaction Interface Module to post intra governmental transactions to the correct account at the point of receipt.

D-2021-0095-D000FP-0002-0002.B2f

Open