Open Recommendations

Rec. A.1.c: The DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD, in coordination with the Defense Security Cooperation Agency, determine whether General Equipment below the capitalization threshold provided through Presidential Drawdown Authority should be valued at other than net book value and if so, update the Defense Security Cooperation Agency's Security Assistance Management Manual accordingly and alert the Military Departments to this change.

Rec. A.2.a: The DoD OIG recommended that the Under Secretary of Defense for Policy and the Director, Defense Security Cooperation Agency perform a cost-benefit analysis of upgrading the manually-intensive Defense Security Cooperation Agency 1000 system environment to provide automated information, which includes all required data fields, to support DoD Components' tracking and reporting of Presidential Drawdown Authority.

Rec. A.2.b: The DoD OIG recommended that the Under Secretary of Defense for Policy and the Director, Defense Security Cooperation Agency update the Security Assistance Management Manual to include information on developing initial estimates for valuing defense articles on the Presidential Determination and Defense Security Cooperation Agency Presidential Drawdown Authority Execute Orders, and guidance on updating initial estimated costs to actual costs of the Presidential Drawdown Authority Execute Orders.

Rec. A.2.c.1: The DoD OIG recommended that the Under Secretary of Defense for Policy and the Director, Defense Security Cooperation Agency, in coordination with the Office of the Under Secretary of Defense for Acquisition and Sustainment, develop a centralized repository of serialized General Equipment provided under Presidential Drawdown Authority that tracks the assets by serial number and by specific Presidential Drawdown Authority under which the serialized General Equipment was provided.

Rec. A.2.c.2: The DoD OIG recommended that the Under Secretary of Defense for Policy and the Director, Defense Security Cooperation Agency, in coordination with the Office of the Under Secretary of Defense for Acquisition and Sustainment, develop a centralized repository of serialized General Equipment provided under Presidential Drawdown Authority that tracks the assets by serial number and by specific Presidential Drawdown Authority under which the serialized General Equipment was provided.

Rec. B.1.a: The DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD, require Military Departments to perform a full reconciliation of Operating Materials and Supplies provided to the Government of Ukraine under Presidential Drawdown Authority Execute Orders 1?37 to ensure those assets are revalued according to the DoD's Presidential Drawdown Authority policies.

Rec. B.1.a.1: The DoD OIG recommended that the Assistant Secretary of the Army (Financial Management and Comptroller) perform a review of Presidential Drawdown Authority Execute Orders 38?56 to ensure that the Execute Orders complied with DoD's Presidential Drawdown Authority policies for Operating Materials and Supplies.

Rec. B.1.a.2: The DoD OIG recommended that the Assistant Secretary of the Navy (Financial Management and Comptroller) perform a review of Presidential Drawdown Authority Execute Orders 38?56 to ensure that the Execute Orders complied with DoD's Presidential Drawdown Authority policies for Operating Materials and Supplies.

Rec. B.1.a.3: The DoD OIG recommended that the Assistant Secretary of the Air Force (Financial Management and Comptroller) perform a review of Presidential Drawdown Authority Execute Orders 38?56 to ensure that the Execute Orders complied with DoD's Presidential Drawdown Authority policies for Operating Materials and Supplies.

Rec. B.1.a.4: The DoD OIG recommended that the Assistant Deputy Commandant for Programs and Resources of the Marine Corps perform a review of Presidential Drawdown Authority Execute Orders 38?56 to ensure that the Execute Orders complied with DoD's Presidential Drawdown Authority policies for Operating Materials and Supplies.

Rec. B.1.b: The DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD, require the Military Departments to develop and implement procedures to ensure there are adequate controls over valuing defense articles provided under Presidential Drawdown Authority.

(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.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.

(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.1.c: The DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD, develop and implement a process to ensure that audit remediation tasks across the DoD Components are not conflicting.

(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. A.2.b: The DoD OIG recommended that the Assistant Secretary of the Navy (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.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.

(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.a: The DoD OIG recommended that the Assistant Secretary of the Army (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.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.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.

(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.a: The DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD, develop and implement updated Financial Improvement and Audit Remediation guidance, including a definition of Financial Improvement and Audit Remediation. At a minimum, the guidance should define the allowable processes and tasks that fall under Financial Improvement and Audit Remediation and the use of contractor personnel to help with Financial Improvement and Audit Remediation tasks.