The Department of Defense’s Office of Inspector General revealed in an audit released Tuesday that the Pentagon had an incomplete list of its financial management systems and inadequate plans for system compliance.
Inspector General Robert Storch raised concerns that ongoing problems with DOD’s business and financial systems could jeopardize the department’s ability to produce accurate financial management information, the DOD OIG said Tuesday.
Without corrective measures, DOD will continue to spend money on noncompliant, outdated systems and become at risk of making poor business decisions, negatively impacting its mission objectives.
To address the identified risks, the DOD OIG recommended that the Pentagon identify the financial management systems it will have when it becomes compliant with the Federal Financial Management Improvement Act.
The Pentagon must also create a strategy for all DOD financial systems to achieve FFMIA compliance or retire and replace on time and obtain justification from the system owners to allow the use of the platforms in the Defense Business System Audit Remediation Plan.
The Potomac Officers Club will host the Challenges and Best Practices to Achieving Audit Readiness in the DoD Forum on Jan. 29 to facilitate discussion among audit and compliance professionals from the government and industry. Click here to register!