Accuracy of the FY 1999 Additions, Deletions, and Modifications to the Military Departments' Real Property Databases

Abstract : This report is the third in a series of reports on accounting for property, plant, and equipment, and was performed in support of the Chief Financial Officers Act of 1990, as amended by the Federal Financial Management Act of 1994. DoD real property represents 46 percent, or $91.7 billion, of the Federal Government's real property assets of $198.8 billion. Therefore, accurate reporting of the real property portion of the property, plant, and equipment account is critical to achieving favorable audit opinions in the future. The Office of Management and Budget; the General Accounting Office; the Under Secretary of Defense (Comptroller); and the Inspector General, DoD, jointly developed DoD implementation strategies for accurate financial reporting of real property values. The Under Secretary of Defense (Comptroller) contracted with a certified public accounting firm to assist in the valuation of real property. The contractor derived a predicted value for historical cost and compared the predicted amount to the historical cost recorded in the Military Departments' real property databases. The objective was to establish a baseline historical cost value as of September 30, 1998, for each Military Department's real property database. The historical cost values were to be sustained by properly accounting for additions, deletions, and modifications, using adequate supporting documentation.