Accession Number : ADA556912


Title :   DOD Financial Management: Improvement Needed in DOD Components' Implementation of Audit Readiness Effort


Descriptive Note : Congressional rept.


Corporate Author : GOVERNMENT ACCOUNTABILITY OFFICE WASHINGTON DC


Personal Author(s) : Khan, Asif A ; Dymond, Abe ; Foderaro, Paul ; Yoder, J M ; Karls, Kristi ; Bingham, Michael ; Harris, Carmen ; Walker, Adrienne ; Yoder, David ; Kelly, Jason


Full Text : https://apps.dtic.mil/dtic/tr/fulltext/u2/a556912.pdf


Report Date : Sep 2011


Pagination or Media Count : 55


Abstract : The Department of Defense (DoD) has been required to prepare audited annual financial statements since 1997, but to date it has not been able to meet this requirement. The National Defense Authorization Act of Fiscal Year 2010 mandated that DoD be prepared to validate [certify] that its consolidated financial statements are audit-ready by September 30, 2017. In May 2010, DoD issued its Financial Improvement and Audit Readiness (FIAR) Guidance to provide a methodology for DoD components to follow to develop and implement their Financial Improvement Plans (FIPs) for achieving audit readiness. The DoD FIP is a framework for planning and tracking the steps and supporting documentation. GAO was asked to assess the FIP methodology provided in the FIAR Guidance, the development and implementation of selected components' FIPs, and DoD's monitoring and oversight of the FIP process. To do this, GAO analyzed the FIAR Guidance and reviewed two selected FIPs: Navy Civilian Pay and Air Force Military Equipment. The reviews of the FIPs included a review of relevant documentation and interviews with DoD and component officials. GAO recommends that the Secretary of Defense take various actions to improve the development, implementation, documentation, and oversight of DoD's financial management improvement efforts. DoD generally concurred with the recommendations and commented on actions being taken to implement them.


Descriptors :   *AIR FORCE , *AUDITING , *DEFICIENCIES , *FINANCIAL MANAGEMENT , *MANAGEMENT PLANNING AND CONTROL , *NAVY , *PREPARATION , ACCOUNTING , AIR FORCE EQUIPMENT , CIVILIAN PERSONNEL , DEPARTMENT OF DEFENSE , MILITARY BUDGETS , MONITORING , SALARIES , STANDARDIZATION , STANDARDS


Subject Categories : Administration and Management
      Economics and Cost Analysis
      Military Forces and Organizations


Distribution Statement : APPROVED FOR PUBLIC RELEASE