FISCAL YEAR 2008 FINANCIAL REPORT
DECEMBER 2008
DEFENSE FINANCE
AND ACCOUNTING
SERVICE
WORKING CAPITAL FUND
DEPARTMENT OF DEFENSE
DEFENSE FINANCE AND ACCOUNTING SERVICE
WORKING CAPITAL FUND
FISCAL YEAR 2008 FINANCIAL REPORT
Table of Contents Page
Management’s Discussion and Analysis .................................................................... 1-31
Financial Statements
Balance Sheets........................................................................................................ 32
Statements of Net Cost............................................................................................ 33
Statements of Changes in Net Position ................................................................... 34
Statements of Budgetary Resources ....................................................................... 35
Notes to the Financial Statements ........................................................................... 36
Office of Inspector General’s Audit Endorsement Report.............................................. 46
Independent Auditor’s Report........................................................................................ 48
Comments from DFAS Management and its
Audit Committee on the Auditor’s Report ................................................................... 52
DEPARTMENT OF DEFENSE
DEFENSE FINANCE AND ACCOUNTING SERVICE
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2008
1
In Fiscal Year (FY) 2008, the Defense Finance and Accounting Service (DFAS) continued its
endeavor to reform financial management, improve the quality of DFAS products and services,
and reduce costs to customers. The DFAS efforts support the President's Management Agenda,
the Department of Defense (DoD) transformation initiatives, and the men and women who
defend America.
DESCRIPTION OF THE REPORTING ENTITY
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