Weekly Roundup: DoD Audit Readiness
Posted on: April 22, 2015

Lawmakers Ramp up Push for Pentagon Audit

Photo courtesy of Getty Images

http://thehill.com/policy/finance/239515-lawmakers-call-on-new-defense-chief-to-commit-to-audit-plan, Apr. 21, 2015

While serving as the head of the Department of Defense (DoD), former Defense Secretary Leon Panetta created an aggressive deadline for DoD to produce auditable financial statements by 2017.  Ms. Shabad reports that lawmakers are actively petitioning the new Defense Secretary, Ashton Carter, to support the fast-approaching deadline.  DoD may be the largest government agency with the largest federal budget, but it is also the only federal agency that has yet to prepare an annual financial audit.


‘The Most Unpopular Person in the Pentagon’

Photo courtesy of FCW.com

http://fcw.com/articles/2015/04/21/levine-dcmo-pitch.aspx, Apr. 21, 2015

DoD established the Deputy Chief Management Officer position in 2008 to enable strategic decision-making, process improvements and enterprise-wide standardizations for the agency’s accounting, personnel and human resource functions.  According to Mr. Mazmanian, Peter Levine has pitched his passion for the position and determination to help DoD produce a clean financial audit.  Mr. Levine states, “We have to have systems and processes in place that work and that produce good financial information… What we need to do is change our business processes so that they make sense and that they can be appropriately automated, rather than automating an old process that isn’t very efficient in the first place.”


IG Revokes Decision on DoD’s First Clean Audit

http://www.federalnewsradio.com/407/3825091/IG-revokes-decision-on-DoDs-first-clean-audit, Mar. 24, 2015

Last month Mr. Serbu reported that DoD’s inspector general reversed a fiscal year 2012 clean audit opinion from the U.S. Marine Corps.  The IG claims that recently discovered suspense accounts with the Department of Treasury brought into question the accuracy of the financial data presented for the USMC 2012 Schedule of Budgetary Activity (SBA) audit.  Additionally, these suspense accounts appear to have transactions between most, if not all, DoD components, the DoD’s financial shared services center (DFAS), and Treasury.  While some argue the materiality of the accounts, it will undoubtedly be an area of focus for DoD components as they strive to meet the 2017 goal for financial audit readiness.