Fiscal Year 2018 United States Army Annual Financial Report - Winning Through Readiness, Modernization, and Reform

Sep 21, 2026

Uploaded by Jake

Fiscal Year 2018 United States Army Annual Financial Report presents the Army’s financial reporting framework and accompanying narratives for the General Fund and Working Capital Fund. The contents outline management’s discussion and analysis, the independent auditors’ report, management responses, and principal financial statements including balance sheets, statements of net cost, changes in net position, and budgetary resources. The report also covers consolidated notes, stewardship information, and required supplementary data alongside a message on readiness, modernization, and reform.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages208

Reading Time8 h 44 min

AccessFree to download

Message from the Secretary of the Army

Message from the Assistant Secretary of the Army

Financial Management and Comptroller

Section 1: Management’s Discussion and Analysis

Army General Fund (GF)

Army Working Capital (WCF)

GF & WCF Management Assurances

Section 2.A: Army General Fund Financial Section

Inspector General’s Transmittal Letter

Independent Auditors’ Report

Management’s Response

Principal Financial Statements

Notes to the Principal Financial Statements

Required Supplementary Stewardship Information

Required Supplementary Information

Section 2.B: Army Working Capital Fund Financial Section

Inspector General’s Transmittal Letter

Independent Auditors’ Report

Management’s Response

Principal Financial Statements

Notes to the Principal Financial Statements

Required Supplementary Information

Fiscal Year 2018 United States Army Annual Financial Report Winning Through Readiness, Modernization, and Reform Winning Through Readiness, Modernization, and Reform FY 2018 CONTENTS Message from the Secretary of the Army Message from the Assistant Secretary of the Army Financial Management and Comptroller SECTION 1: MANAGEMENT’S DISCUSSION AND ANALYSIS Army General Fund (GF) Mission and Organizational Structure Analysis of Performance Goals, Objectives, and Results Analysis of Principal Financial Statements Army Working Capital (WCF) Mission and Organizational Structure Analysis of Performance Goals, Objectives, and Results Analysis of Principal Financial Statements GF & WCF Management Assurances 3 5 6 7 9 37 41 43 53 57 SECTION 2.A: ARMY GENERAL FUND FINANCIAL SECTION Inspector General’s Transmittal Letter Independent Auditors’ Report Management’s Response to Independent Auditors’ Report Principal Financial Statements Consolidated Balance Sheets Consolidated Statements of Net Cost Consolidated Statements of Changes in Net Position Combined Statements of Budgetary Resources Notes to the Principal Financial Statements Required Supplementary Stewardship Information Non-Federal Physical Property Research and Development Required Supplementary Information Deferred Maintenance Heritage Assets and Stewardship Land Disaggregated Statement of Budgetary Resources 61 63 65 96 97 97 98 99 101 102 136 136 136 141 141 143 144 SECTION 2. B: ARMY WORKING CAPITAL FUND FINANCIAL SECTION Inspector General’s Transmittal Letter Independent Auditors’ Report Management’s Response to Independent Auditors’ Report Principal Financial Statements Consolidated Balance Sheets Consolidated Statements of Net Cost Consolidated Statements of Changes in Net Position Statements of Budgetary Resources Notes to the Principal Financial Statements Required Supplementary Information Disaggregated Statement of Budgetary Resources 147 149 151 180 181 181 182 183 184 185 202 202 UNAUDITED Army Annual Fiscal Year 2018 United States Army Annual Financial Report Winning Through Readiness, Modernization, and Reform Today, our Army stands ready to deter, and if necessary, defeat any adversary that threatens our Nation’s security or vital national interests. The United States Army is the most lethal and capable ground combat force in history, defending the Nation and serving the American people for over 243 years. Today, our Army stands ready to deter, and if necessary, defeat any adversary that threatens our Nation’s security or vital national interests. We are thankful to Congress for providing us the resources required to build this current state of readiness. The Army’s 2018 Annual Financial Report (AFR) reflects the outcome of the Army’s inaugural comprehensive audit. For the first time in Army history, a full audit by an independent public accountant was conducted, which reflects our enduring commitment to fiscal responsibility and accountability. Over the past seventeen years, the Army provided the majority of forces fighting in Iraq and Afghanistan. Over that time, strategic competitors modernized their armies in an attempt to reduce the overmatch of the U.S. military. Rapid rates of technological change and the proliferation of advanced technologies have added further complexity to the security environment. In response to these changing conditions, the 2018 National Defense Strategy (NDS) issued a mandate to build amore lethal force. In support of the NDS, the Army published the Army Vision in June of 2018, which articulates the future end state needed to ensure our overmatch against all potential adversaries. As described in the Army Vision: “The Army of 2028 will be ready to deploy, fight and win decisively against any adversary, anytime and anywhere, in a joint, multi-domain, high-intensity conflict, while simultaneo

FAQs

What is the scope of the FY 2018 United States Army Annual Financial Report?

The report covers financial information and required disclosures for the Army’s General Fund and Working Capital Fund, including management discussion, auditor reporting, principal financial statements, and supplementary stewardship and required supplementary information.

Which sections are included in the report’s structure?

It includes messages from Army leadership, Section 1 with management’s discussion and analysis for both funds, and Section 2.A and 2.B that present financial section items such as auditor reports, management responses, principal financial statements, and notes.

How does the report connect to the Army’s priorities?

The narrative emphasizes readiness, modernization, and reform, describing progress in readiness, initiatives for modernization (including Army Futures Command), and reforms intended to reallocate resources to priority activities.

Sep 21, 2026

Uploaded by Jake