DOD Financial Management: Improved Controls, Processes, and Systems Are Needed for Accurate and Reliable Financial Information

Abstract

The department is facing near and long-term internal fiscal pressures as it attempts to balance competing demands to support ongoing operations, rebuild readiness following extended military operations, and manage increasing personnel and health care costs as well as significant cost growth in its weapon systems programs. For more than a decade, DOD has dominated GAO s list of federal programs and operations at high risk of being vulnerable to fraud, waste, abuse.6 In fact, all of the DOD programs on GAO s High-Risk List relate to business operations, including systems and processes related to management of contracts, finances, the supply chain, and support infrastructure,7 as well as weapon systems acquisition. Long-standing and pervasive weaknesses in DOD s financial management and related business processes and systems have (1) resulted in a lack of reliable information needed to make sound decisions and report on the financial status and cost of DOD activities to Congress and DOD decision makers; (2) adversely impacted its operational efficiency and mission performance in areas of major weapons system support and logistics; and (3) left the department vulnerable to fraud, waste, and abuse. Because of the complexity and long-term nature of DOD s transformation efforts, GAO has reported the need for a chief management officer (CMO) position and a comprehensive, enterprisewide business transformation plan. In May 2007, DOD designated the Deputy Secretary of Defense as the CMO. In addition, the National Defense Authorization Acts for fiscal years 2008 and 2009 contained provisions that codified the CMO and Deputy Chief Management Officer (DCMO) positions, required DOD to develop a strategic management plan, and required the Secretaries of the military departments to designate their Undersecretaries as CMOs and to develop business transformation plans.

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Document Details

Document Type
Technical Report
Publication Date
Sep 23, 2011
Accession Number
ADA549574

Entities

People

  • Asif A. Khan
  • Beatrice Alff
  • Darby Smith
  • F. A. Dymond
  • Gayle Fischer
  • Greg Pugnetti
  • Hal Santarelli
  • J. C. Martin
  • Keith Mcdaniel
  • Maxine Hattery.
  • Sandy Silzer
  • Steve Donahue

Organizations

  • United States Government Accountability Office

Tags

Communities of Interest

  • Biomedical
  • Human Systems
  • Weapons Technologies

DTIC Thesaurus Topics

  • Brain Injuries
  • Business Administration
  • Department Of Defense
  • Financial Management
  • Information Systems
  • Law
  • Lessons Learned
  • Logistics
  • Management Personnel
  • Military Equipment
  • Military Personnel
  • National Security
  • Organizational Structure
  • Supply Chain
  • Supply Chain Management
  • Test And Evaluation
  • United States Government

Readers

  • Defense Acquisition Program Management
  • Defense Financial Management and Audit.