“The Government Accountability Office (GAO) has consistently placed DOD financial management on its high risk list for 26 years. The most recent report on the 2021 high-risk list notes that although the Department’s spending represents more than 50% of federal government discretionary spending and its physical assets represent more than 70% of federal government physical assets, this remains the only major agency that has has never been able to accurately record and report on expenses or physical assets“, wrote the lawmakers.
The senators are concerned that failures in DOD’s financial management will harm the overall efficiency and effectiveness of their operations. To address these shortcomings, the senators urge the commission to develop a team of outside experts and consultants – a “financial management team” – to help conduct a thorough and thorough review of the policies, procedures and planned investments of the DOD.
Additionally, the senators recommend that committee members work closely with the Government Accountability Office (GAO) and the DOD Office of Inspector General (DOD OIG), both of which have conducted their own reviews and found a number of alarming shortcomings.
“It is imperative that the Department’s financial management systems comply with applicable requirements and guidelines, respond to auditors’ conclusions on the financial statements, and provide the reliable, useful, and timely information necessary to meet DOD’s operational financial management needs. . Unless the underlying financial management systems are addressed, any effort to reform the planning, programming, budgeting, and execution processes at DOD would be a waste of time and money,” lawmakers concluded.
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