By Gerald Balzer

Northrop F-89 Scorpion (Aerofax Datagraph eight)

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General Accounting Office, March 1997). DFAS leaders suggested that the impending replacement of the MOCAS system in Columbus and the implementation of DFAS’s Corporate Database should lead to marked reductions in the NULO and UMD balances. 4 Their most destructive effect, instead, appears to be to muddle customers’ true patterns of obligation and disbursement. For that reason, they encumber the efforts of WCF entities to manage themselves. DFAS Systems Problems DFAS accounting illustrates systems development and implementation problems DFAS faces across both accounting and finance.

DFAS does not always get an enormous amount of lead time to incorporate changes in military pay into the payroll system. For example, the president signed the law enacting the FY2000 Defense Appropriations Act on October 26, 1999 (Army Times, 1999). , flight pay) retroactive to October 1, 1999. Of course, the pay changes were debated extensively ahead of time. DFAS personnel noted that the existing military pay systems are highly obsolete, making large-scale pay changes difficult to handle. DFAS is currently trying to put all the services on a new military pay/personnel system, the Defense Integrated Military Human Resource System (DIMHRS).

These financial statements are to reflect • the agency’s overall financial position including assets and liabilities • results of operations; • cash flows; and • a reconciliation to budget reports. Section 304 of the legislation calls on the agencies to have their statements audited. Our interpretation of this legislation suggests it draws upon (and perhaps excessively intertwines) financial accounting and managerial accounting. Financial accounting is defined as “measuring and recording business transactions and providing financial statements that are based on generally accepted accounting principles.

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