Financial Reports

The FY 2020 Working Capital Fund Agency Financial Report (AFR) has been restated in the comparative FY 2021 Working Capital Fund AFR.  The FY 2020 Balance Sheet, Statement of Net Cost, and Statement of Changes in Net Position were restated to correct the misapplication of the proper accounting treatment and recognition of: (1) general property, plant and equipment, net for the transfer-in of capitalized assets and the related depreciation expense; and (2) accounts receivable for deposit funds in accordance with SFFAS 1, Accounting for Selected Assets and Liabilities, and SFFAS 6, Accounting for Property, Plant, and Equipment. DLA management concluded that the accounting for these transactions should be corrected and the necessary adjustments recorded. Specifically, DLA Working Capital Fund recorded adjustments to correct the errors for transfer-in of capitalized assets and accounts receivable for deposit funds on the Balance Sheet and the related the depreciation expense on the Statement of Net Cost. As a result, the FY 2020 Balance Sheet, Statement of Net Cost, and Statement of Changes in Net Position included within the FY 2020 Working Capital Fund AFR should no longer be relied upon due to the subsequent restatement and the misapplication of the proper accounting treatment  and recognition for general property, plant and equipment, net for the transfer-in of capitalized assets and the related depreciation expense and accounts receivable.

The FY 2020 General Fund Agency Financial Report (AFR) has been restated in the comparative FY 2021 General Fund AFR.  The FY 2020 Balance Sheet, Statement of Net Cost, and Statement of Changes in Net Position were restated to correct the misapplication of the proper accounting treatment and recognition of: (1) capitalized construction-in-process (CIP) cost that had been expensed; and (2) revenue earned and the related accounts receivable and advances from others and deferred revenue that were not recognized in the proper period in accordance with SFFAS 1, Accounting for Selected Assets and Liabilities, SFFAS 6, Accounting for Property, Plant, and Equipment, and SFFAS 7, Accounting for Revenue and Other Financing Sources and Concepts for Reconciling Budgetary and Financial Accounting. DLA management concluded that the accounting for these transactions should be corrected and the necessary adjustments recorded. Specifically, DLA General Fund recorded adjustments to correct the errors for capitalized CIP cost, accounts receivable, and advances from other and deferred revenue on the Balance Sheet and revenue earned and not recognized in the proper period and gross cost improperly expensed on the Statement of Net Cost. As a result, the FY 2020 Balance Sheet, Statement of Net Cost, and Statement of Changes in Net Position included within the FY 2020 General Fund AFR should no longer be relied upon due to the subsequent restatement and the misapplication of the proper accounting treatment  and recognition for capitalized CIP cost  that had been expensed and revenue earned and the related accounts receivable and advances from others and deferred revenue that were not recognized in the proper period.

The FY 2020 Transaction Fund Agency Financial Report (AFR) has been restated in the comparative FY 2021 Transaction Fund AFR.  The FY 2020 Balance Sheet, Statement of Net Cost, and Statement of Changes in Net Position were restated to correct the misapplication of the proper accounting treatment and recognition of: (1) inventory and related gains and losses; (2) advances and prepayments; and (3) accounts payable and the related gross cost in accordance with SFFAS 1, Accounting for Selected Assets and Liabilities; SFFAS 3, Accounting for Inventory and Related Property; and SFFAS 5, Accounting for Liabilities of the Federal Government. DLA management concluded that the accounting for these transactions should be corrected and the necessary adjustments recorded. Specifically, DLA Transaction Fund recorded adjustments to correct the errors for inventory and related property, net, advances and prepayments, and accounts payable on the Balance Sheet and related gains and losses and gross cost on the Statement of Net Cost. As a result, the FY 2020 Balance Sheet, Statement of Net Cost, and Statement of Changes in Net Position included within the FY 2020 Transaction Fund AFR should no longer be relied upon due to the subsequent restatement and the misapplication of the proper accounting treatment  and recognition for inventory and related property, net, advances and prepayments, accounts payable, and the related earned revenue and gross cost.

The FY 2018 Transaction Fund Agency Financial Report (AFR) has been restated in the comparative FY2019 Transaction Fund AFR.  The FY 2018 Statement of Net Cost is restated to correct the misapplication of the revenue recognition accounting principles in accordance with SFFAS No. 7, Accounting for Revenue and Other Financing Sources and Concepts for Reconciling Budgetary and Financial Accounting.  Specifically, exchange revenue was being recorded and presented on a net basis, whereby revenue and cost of goods sold were recorded and presented as net revenue. DLA concluded that the accounting for the revenue transactions should be corrected and adjustments were recorded by DLA, to correct the error and to present revenue and cost of goods sold on a gross basis on the statements of net cost. As a result, the FY 2018 Statement of Net Cost included within the FY 2018 Transaction Fund AFR should no longer be relied upon due to the subsequent restatement for the misapplication of the revenue recognition accounting