Audit of the DoD’s Plans to Address Longstanding Issues with Outdated Financial Management Systems

Submitting OIG:

Department of Defense OIG

Date Issued:

Tuesday, January 23, 2024

Agency Reviewed / Investigated:

Department of Defense

Submitting OIG-Specific Report Number:

DODIG-2024-047

Location(s):

Agency-Wide

Type of Report:

Audit

Questioned Costs:

Funds for Better Use:

Report updated under NDAA 5274:

View Document:

Attachment	Size
DODIG-2024-047-SECURE.pdf	21.65 MB

Recommendation Number	Recommendation Status	Significant Recommendation
D-2024-0047-D000FV-0001-0001.a1	Open	No
Rec. 1.a.1: The DoD OIG recommended that the Deputy Secretary of Defense direct the Under Secretary of Defense(Comptroller)/Chief Financial Officer, DoD, and the DoD Chief Information Officer to identify a lead and the lead subsequently develops and implements plans to create an ideal end-state document that identifies the financial management systems that the DoD will have when it achieves compliance with the Federal Financial Management Improvement Act of 1996.
D-2024-0047-D000FV-0001-0001.a2	Open	No
Rec. 1.a.2: The DoD OIG recommended that the Deputy Secretary of Defense direct the Under Secretary of Defense(Comptroller)/Chief Financial Officer, DoD, and the DoD Chief Information Officer to identify a lead and the lead subsequently develops and implements plans to create a strategy for all DoD financial management systems to either become compliant with the Federal Financial Management Improvement Act of 1996 or be retired and replaced in a timely manner.
D-2024-0047-D000FV-0001-0001.a3	Open	No
Rec. 1.a.3: The DoD OIG recommended that the Deputy Secretary of Defense direct the Under Secretary of Defense(Comptroller)/Chief Financial Officer, DoD, and the DoD Chief Information Officer to identify a lead and the lead subsequently develops and implements plans to obtain justification from the system owners for continued use of each of the 214 systems included in the January 2023 Defense Business Systems Audit Remediation Plan that the DoD Components use outside of the 18 general ledger systems.
D-2024-0047-D000FV-0001-0001.a4	Open	No
Rec. 1.a.4: The DoD OIG recommended that the Deputy Secretary of Defense direct the Under Secretary of Defense(Comptroller)/Chief Financial Officer, DoD, and the DoD Chief Information Officer to identify a lead and the lead subsequently develops and implements plans to create a deliberate and systematic process of adopting the functionalities already available in the enterprise resource planning systems or other DoD-wide solution to replace those functionalities not approved by the Deputy Secretary of Defense.
D-2024-0047-D000FV-0001-0001.a5	Open	No
Rec. 1.a.5: The DoD OIG recommended that the Deputy Secretary of Defense direct the Under Secretary of Defense(Comptroller)/Chief Financial Officer, DoD, and the DoD Chief Information Officer to identify a lead and the lead subsequently develops and implements plans to identify opportunities for DoD-wide solutions to simplify the DoD's financial management system environment.
D-2024-0047-D000FV-0001-0001.a6	Open	No
Rec. 1.a.6: The DoD OIG recommended that the Deputy Secretary of Defense direct the Under Secretary of Defense(Comptroller)/Chief Financial Officer, DoD, and the DoD Chief Information Officer to identify a lead and the lead subsequently develops and implements plans create a single DoD-wide solution for the remaining activity for which the DoD is unable to use Treasury Department programs.
D-2024-0047-D000FV-0001-0001.a7	Open	No
Rec. 1.a.7: The DoD OIG recommended that the Deputy Secretary of Defense direct the Under Secretary of Defense(Comptroller)/Chief Financial Officer, DoD, and the DoD Chief Information Officer to identify a lead and the lead subsequently develops and implements plans to identify significant challenges preventing the DoD Components from simplifying the DoD's system environment and implement DoD-wide solutions to address any identified challenges.
D-2024-0047-D000FV-0001-0001.b	Open	No
Rec. 1.b: The DoD OIG recommended that the Deputy Secretary of Defense approve the continued use of each of the 214 DoD-owned systems included in the January 2023 Defense Business Systems Audit Remediation Plan that the DoD Components use outside of the 18 general ledger systems.
D-2024-0047-D000FV-0001-0002.a1	Open	No
Rec. 2.a.1: The DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD coordinate with the DoD Chief Information Officer to develop and implement policies and procedures that require the DoD Components to document all end-to-end processes relevant to financial transactions with sufficient detail to identify how systems are used and oversee and monitor the documentation of those processes.
D-2024-0047-D000FV-0001-0002.a2	Open	No
Rec. 2.a.2: The DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD coordinate with the DoD Chief Information Officer to review all DoD Component end-to-end processes to compile a complete list of internal controls over financial reporting-relevant systems and micro-applications.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

D-2024-0047-D000FV-0001-0001.a1

Open

Rec. 1.a.1: The DoD OIG recommended that the Deputy Secretary of Defense direct the Under Secretary of Defense(Comptroller)/Chief Financial Officer, DoD, and the DoD Chief Information Officer to identify a lead and the lead subsequently develops and implements plans to create an ideal end-state document that identifies the financial management systems that the DoD will have when it achieves compliance with the Federal Financial Management Improvement Act of 1996.

D-2024-0047-D000FV-0001-0001.a2

Open

Rec. 1.a.2: The DoD OIG recommended that the Deputy Secretary of Defense direct the Under Secretary of Defense(Comptroller)/Chief Financial Officer, DoD, and the DoD Chief Information Officer to identify a lead and the lead subsequently develops and implements plans to create a strategy for all DoD financial management systems to either become compliant with the Federal Financial Management Improvement Act of 1996 or be retired and replaced in a timely manner.

D-2024-0047-D000FV-0001-0001.a3

Open