Week 5, DQ1 - Week 5, DQ 1 Give an example of an...

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Week 5, DQ 1 Give an example of an organization that clearly went either over or under their budget, and the actions they took as a result. In your opinion, do you think these actions were helpful, or do you think they may have hurt the company in the long term? Why? Government Accounting Office (GAO) disclosed on 9/29/10 that Defense finance systems are $6.9 billion over budget, and years behind schedule of completion. The report further states that six of the nine Defense IT systems, critical to the department’s ability to achieve a financial audit are anywhere from two to 12 years behind schedule! The GAO reported that, as a whole, the systems have run at least $6.9 billion over budget. The Director of Financial Management and Assurance at GAO, Asif Khan, reported to the Senate Homeland Security and Governmental Affairs Committee that only one of the 10 systems essential to transforming business operations at Defense had been completed. According to GAO, These new systems are set to replace more than 500 legacy systems, which currently cost in the hundreds of millions of dollars annually to operate. As a solution, Congress has required Defense (responsible for over half of the federal government’s discretionary spending) to have an independent audit by 2017. This means that the systems have to be up and running by then, in order for the audit to be
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This note was uploaded on 10/10/2010 for the course ACC ACC 349 taught by Professor Costaccting during the Spring '10 term at DeVry Irvine.

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Week 5, DQ1 - Week 5, DQ 1 Give an example of an...

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