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The fifth annual Division-wide monetary assertion audit resulted in a disclaimer of opinion, nevertheless vital progress was achieved. Seven Elements have acquired unmodified opinions and one acquired a certified opinion. Opinions for the Workplace of Inspector Common and the Protection Data Techniques Company Working Capital Fund are pending. The U.S. Marine Corps (USMC) two-year audit cycle will probably be accomplished in November 2023 and won’t be reporting this yr. The remaining Elements acquired disclaimers of opinion.
The FY 2022 audit resulted in three new DoD-wide materials weaknesses and the consolidation of six materials weaknesses into three for no internet change within the variety of materials weaknesses. The DoD Elements closed three materials weaknesses and downgraded one.
The Division additionally made vital progress on the Secretary of Protection audit precedence areas—Fund Steadiness with Treasury (FBWT), Entry Controls, and Universe of Transactions. The Division maintained an total Assertion of Variations stability of $1.41 billion in June 2022 (0.2 p.c of DoD FBWT), down from $6.7 billion in December 2018. Moreover, the Division expects auditors to shut a previous yr discovering concerning controls for the Treasury Index-97 Money Administration Report.
The Military remediated 64 p.c of its high-priority corrective actions associated to entry controls. The Navy deployed an Id, Credential, and Entry Administration (ICAM) resolution to automate account-provisioning, removing, and entry evaluations for over 83,000 customers (11 p.c of its distinctive consumer identities). Moreover, Navy remediated 27 p.c of its entry management and segregation of duties findings.
On this yr, the USMC decommissioned three legacy programs and put in place a brand new basic ledger system, Protection Businesses Initiative (DAI)—a major accomplishment for any IT system migration. DAI drastically simplifies and modernizes the USMC’s already lean system atmosphere. USMC transferred its universe of transactions to Advana to assist DAI balances and reconciliations, an enormous step towards reaching an opinion.
The trustworthiness and transparency the audit delivers will promote an enduring, leaner, extra accountable DoD leading to:
A Modernized Workforce. Robotic course of automation (RPA) efforts are lowering guide duties, permitting monetary managers to deal with extra advanced points. As of October 2022, DoD has deployed 607 “bots,” with 54 p.c aligning to monetary administration processes and 20 p.c instantly supporting compliance or audit response. DFAS deployed 52 “bots” for 48 new use instances and initiatives saving roughly 128,045 hours or an estimated $4.2 million in value financial savings.
Improved Enterprise Operations. The Air Drive corrected roughly $5.2 billion in historic variances on its tools and gathered depreciation basic ledger accounts. This elevated degree of visibility permits for larger management and oversight of navy tools monetary transactions. The Air Drive additionally automated its trial stability reconciliations, redirecting these hours to extra value-added duties.
High quality Choice Making. DLA accomplished a one hundred pc bodily stock, establishing starting balances and merchandise counts for stockpile stock. That, plus different corrective actions, has allowed DLA to maintain a listing accuracy at 98 p.c or larger, which helps decision-making in any respect Navy Companies.
Dependable Networks. In FY 2022 the Navy decommissioned three audit related legacy programs, migrating knowledge and customers throughout three Instructions to fashionable programs. Up to now, Navy has decommissioned 11 audit related legacy programs.
Enhanced Public Confidence. Our audits demonstrated the Division takes care of its individuals. The Navy Pay and Civilian Pay programs acquired unmodified Assertion on Requirements for Attestation Engagements No. 18 opinions for the sixth and tenth consecutive years, respectively.
Reaching our audit targets would require the continued funding of assets and focus of senior Comptroller management in partnership with Acquisition and Sustainment and the Chief Data Officer. Whereas there’s a lot work remaining, and a few of our most advanced issues nonetheless lay earlier than us, the audit has been a catalyst for enterprise reform throughout the Division, leading to larger monetary integrity, elevated transparency, and finally, a better-supported warfighter.
For extra info, please see the Division’s Company Monetary Report at https://comptroller.defense.gov/odcfo/afr/.
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