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GAO Audit of DoD Financial Management and Oversight

GAO Audit of DoD Financial Management and Oversight

GAO Audit of DoD Financial Management and Oversight
Bill Kobren
The Government Accountability Office (GAO) has issued a new report of interest entitled “GAO-23-104539 Financial Management: DOD Needs to Improve System Oversight.”

According to the GAO, “the Department of Defense can't accurately account for or report on its physical assets or spending. For more than 30 years DOD has tried to modernize its business and financial systems—spending billions of dollars a year on them. That's why DOD's business systems modernization and financial management efforts have been on our High Risk List since 1995. DOD hasn't fully developed guidance for overseeing these systems. Without it, DOD risks investing funds on developing and maintaining systems that don't support financial statements that can be audited. Our 9 recommendations address this and other issues.”

Those “nine recommendations, including (one) that DOD and the military departments update guidance for initial approvals and annual certifications of business and financial systems to substantiate and document compliance with requirements. GAO is also recommending that DOD ensure that the data collected on the extent of business and financial system compliance with statutory requirements is reliable. Further, GAO recommends that DOD develop guidance for systems in sustainment to comply with relevant statutory requirements. In addition, GAO is recommending that DOD implement a strategic approach to workforce planning that, among other things, analyzes gaps in capabilities between existing staff and future needs, and formulates strategies to fill expected gaps.”