Property and Equipment Accounting

conducting an auditThe Fiscal Year 2010 National Defense Authorization Act (NDAA) mandates “…the financial statements of the Department of Defense are validated as ready for audit by not later than September 30, 2017” (see FY2010 NDAA sec. 1003). To achieve this goal, the Department of Defense (DoD) has made significant strides to improve accounting for its property and equipment and has implemented improvements to business processes to account for and control these assets. Accurate financial accounting procedures start with capturing the full costs associated with acquiring an asset and maintaining adequate supporting documentation throughout the asset’s lifecycle. To demonstrate good stewardship over taxpayer resources, and effective use of personal property and equipment, DoD must maintain strong accountability controls over these assets, which start with proper documentation to support the asset’s full cost. Documentation must be maintained in a manner which facilitates audit and review purposes.

This section provides the key Accounting Policies impacting property and equipment; describes key DoD Processes and Initiatives for property and equipment; provides details regarding financial and fixed asset accounting systems; and provides access to training information for property and equipment.