A Study of the State of Budgetary Financial Reporting in Navy Medicine

Navy medicine is currently in a state of change in the methods it employs to report on its stewardship over the budget authority it annually receives and executes. The Bureau of Medicine and Surgery (BUMED) is responsible for accurately reporting on budget execution for Navy medicine. BUMED must comply with financial reporting reform mandates from Congress and other federal agencies, while simultaneously optimizing the use of its financial systems to improve financial management processes. This thesis describes and examines the effectiveness of budgetary financial reporting in Navy medicine. The thesis investigates the Defense Finance and Accounting Service (DFAS) and BUMED accounting systems that produce the financial reports, and additionally evaluates the BUMED official accounting reports that roll up into Department of the Navy (DoN) and Department of Defense (DoD) audited financial statements. Criteria established in the Department of Defense Financial Management Regulation (DoDFMR) and BUMED's Command Evaluation Program (CE) are analyzed to evaluate the effectiveness of the financial systems and reports. The analysis shows that BUMED has made considerable strides in contributing to financial reporting reforms by increasing efficiencies of its systems through consolidation and integration. Additionally, BUMED has complied with financial management reporting guidance set forth by federal regulatory agencies.