Audit of Financial Improvement and Audit Remediation Contracts for DoD Components

(U) Rec. A.1.a.1: 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 Financial Improvement and Audit Remediation support tasks associated with the Audit Resources Budget Submission. At a minimum, the guidance should define all audit?related tasks required for reporting.

(U) Rec. A.1.b: The DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD, develop and implement a process to ensure that the Audit Resources Budget Submissions the DoD Components report are complete and meet the Financial Improvement and Audit Remediation reporting requirements.

(U) Rec. A.2.a: The DoD OIG recommended that the Assistant Secretary of the Army (Financial Management and Comptroller) develop and implement a centralized process to monitor Financial Improvement and Audit Remediation efforts across all commands. At a minimum, the process should include performing annual data calls, identifying Financial Improvement and Audit Remediation contracts, and verifying that the information submitted for the Audit Resources Budget Submission is complete and accurate.

(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.

(U) Rec. B.1.d: The DoD OIG recommended that the Chief Financial Officer of the Defense Logistics Agency 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.

(U) Rec. B.2.b: The DoD OIG recommended that the Assistant Secretary of the Navy (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.

(U) Rec. B.2.d: The DoD OIG recommended that the Chief Financial Officer of the Defense Logistics Agency 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.

(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.