Audit of Financial Improvement and Audit Remediation Contracts for DoD Components

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Date Issued

Thursday, June 13, 2024

Submitting OIG

Department of Defense OIG

Other Participating OIGs

Department of Defense OIG

Agencies Reviewed/Investigated

Department of Defense

Report Number

DODIG-2024-096

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

Questioned Costs

Funds for Better Use

Report updated under NDAA 5274

Open Recommendations

This report has 5 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
D-2024-0096-D000FS-0001-0001.A1a2	No	$0	$0
(U) Rec. A.1.a.2: The DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD, strengthen Financial Improvement and Audit Remediation guidance to clarify and define reporting requirements of Financial Improvement and Audit Remediation contracts for classified activities.
D-2024-0096-D000FS-0002-0001.B1a	No	$0	$0
(U) Rec. B.1.a: The DoD OIG recommended that the Assistant Secretary of the Army (Financial Management and Comptroller) develop and implement a strategy to align their Financial Improvement and Audit Remediation contracts to the annual Secretary of Defense audit priorities and their Component roadmaps to meet audit remediation goals. At a minimum the strategy should include how they plan to use their contractors and an evaluation of current contract requirements to meet the remediation goal of receiving an unmodified audit opinion by December 31, 2028.
D-2024-0096-D000FS-0002-0001.B1c	No	$0	$0
(U) Rec. B.1.c: The DoD OIG recommended that the Assistant Secretary of the Air Force (Financial Management and Comptroller) develop and implement a strategy to align their Financial Improvement and Audit Remediation contracts to the annual Secretary of Defense audit priorities and their Component roadmaps to meet audit remediation goals. At a minimum the strategy should include how they plan to use their contractors and an evaluation of current contract requirements to meet the remediation goal of receiving an unmodified audit opinion by December 31, 2028.
D-2024-0096-D000FS-0002-0002.B2c	No	$0	$0
(U) Rec. B.2.c: The DoD OIG recommended that the Assistant Secretary of the Air Force (Financial Management and Comptroller) develop and implement a plan to reduce the use of contractors when transitioning their Component from remediation to sustaining an unmodified audit opinion. At a minimum, the plan should include how they will transfer the contractor's knowledge to their workforce and estimate the level of contractor assistance still needed.
D-2024-0096-D000FS-0002-0003.B3b	No	$0	$0
(U) Rec. B.3.b: The DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD, develop and implement performance measures to monitor the Financial Improvement and Audit Remediation contracts for overall effectiveness, including verifying the appropriateness of the tasks and funds spent.