DoD Compliance with the Requirements of the Improper Payments Elimination and Recovery Act

Abstract

We determined whether DoD complied with Public Law 107-300, "Improper Payments Information Act of 2002," November 26, 2002, as amended by Public Law 111-204, "Improper Payments Elimination and Recovery Act of 2010," July 22, 2010. We reviewed DoD reporting in the "FY 2011 Agency Financial Report" (AFR), Addendum A, "Other Accompanying Information." The Under Secretary of Defense (Comptroller)/ Chief Financial Officer, DoD (USD[C]/CFO), met the requirements of the Improper Payments Elimination and Recovery Act of 2010, but stated that there were problems with the completeness and accuracy of the DoD's improper payment review and the information reported. USD(C)/CFO made significant disclosures about the limited completeness and accuracy of the DoD's efforts to identify and report on improper payments, including the following: DoD did not statistically sample Defense Finance and Accounting Service (DFAS) commercial payments for its FY 2011 reporting, Transactions and processes (business and financial processes, controls, and systems) were neither standard nor sound in all cases, and The Statement of Budgetary Resources (SBR) was not auditable, and as a result, DoD could not reconcile outlays to the quarterly or annual gross outlays reported in the SBR to ensure that all required payments for reporting purposes were captured. USD(C)/CFO was planning actions to correct these self-identified deficiencies in its improper payment reporting. Specifically, USD(C)/CFO stated that DFAS would begin statistical sampling of commercial payments in FY 2012. DoD was also working to improve its business and financial processes, controls, and systems to achieve financial statement audit readiness by September 30, 2017, as required by Congress. In October 2011, the Secretary of Defense directed the USD(C)/CFO to provide a revised plan to achieve audit readiness for the SBR by the end of 2014.

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Document Details

Document Type
Technical Report
Publication Date
Mar 15, 2012
Accession Number
ADA559120

Entities

People

  • Amy J. Frontz

Organizations

  • United States Department of Defense

Tags

Communities of Interest

  • Biomedical

DTIC Thesaurus Topics

  • Accounting
  • Accuracy
  • Army Corps Of Engineers
  • Auditing
  • Commerce
  • Contracts
  • Department Of Defense
  • Elimination
  • Engineers
  • Finance
  • Homeland Security
  • National Security
  • Recovery
  • Risk Analysis
  • Sampling
  • Statistical Sampling
  • Websites

Readers

  • Defense Financial Management and Audit.