DOD Financial Management: Greater Visibility Needed to Better Assess Audit Readiness for Property, Plant, and Equipment
GOVERNMENT ACCOUNTABILITY OFFICE WASHINGTON DC WASHINGTON DC United States
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Since 1997, DOD has been required to prepare audited financial statements. However, long-standing and pervasive financial management weaknesses have precluded DOD from being auditable. The National Defense Authorization Act NDAA for Fiscal Year 2010 mandated that DOD develop and maintain a plan that among other things, describes the actions needed to ensure that its consolidated financial statements are audit ready by September 30, 2017.The Senate report accompanying the NDAA for Fiscal Year 2015 included a provision for GAO to review DODs plans to achieve audit readiness with respect to its PP and E. This report addresses the reported status of DODs and the military services 1 audit readiness assertions for PP and E asset accountability and 2 plans for valuing PP and E assets. GAO reviewed the FIAR Plan Status Reports and Guidance, documentation of assertions of audit readiness, and federal accounting standards and proposed changes, and interviewed DOD officials.