This report is the fourth in a series of audit reports relating to the audit of the FY 2000 DoD Agency-Wide Financial Statements. The first report discussed the internal controls and compliance with laws and regulations for DoD. The second report discussed issues regarding efforts for improving financial management systems in the 1999 and 2000 Financial Management Improvement Plans. The third report discussed improvements to the Audited Financial Statements Module of the Defense Departmental Reporting System. We performed this audit in response to the Chief Financial Officers Act of 1990, as amended by the Federal Financial Management Act of 1994, which requires that DoD provide audited financial statements to the Office of Management and Budget. The FY 2000 DoD Agency-Wide Financial Statements were compiled from the financial statements of the DoD reporting entities: the Army, Navy, and Air Force General Funds; the Army, Navy, and Air Force Working Capital Funds; the Military Retirement Fund; the U.S. Army Corps of Engineers, Civil Works Program; and financial data for the Other Defense Organizations-General Funds and Working Capital Funds. In FY 2000, the DoD Components reported total assets of $616.7 billion, total liabilities of $ 1.0 trillion, total net costs of operations of $347.5 billion, and total budgetary resources of $656.1 billion.