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    Subject Term: "Defense audits"

    5 publications with a total of 25 open recommendations including 9 priority recommendations
    Director: Asif A. Khan
    Phone: (202) 512-9869

    8 open recommendations
    Recommendation: The Secretary of the Army should direct the Internal Review Directorate under the Assistant Secretary of the Army, Financial Management and Comptroller, to develop written policies and procedures for all financial management-related audit findings and recommendations under its purview that include the following: (1) how the status of the recommendations will be tracked; (2) the process and criteria to be followed for prioritizing the findings and recommendations; (3) the process for developing CAPs to remediate the findings and recommendations, including the detailed CAP elements recommended by the Implementation Guide for OMB Circular A-123; and (4) the process for monitoring the status and progress of the CAPs, including the documentation to be maintained for monitoring CAP status and any actions to be taken if a lack of progress is found.

    Agency: Department of Defense: Department of the Army
    Status: Open

    Comments: The Army concurred with this recommendation. The Army stated that the Internal Review Directorate has completed updating its written standard operating procedures to include monitoring financial management-related external audit findings and recommendations. The Army stated that this new guidance includes an explanation of how recommendations will be tracked; how findings and recommendations will be prioritized; how status and progress of corrective action plans (CAPs) will be developed; and how the status and progress of CAPs will be monitored.
    Recommendation: The Secretary of the Army should direct the Accountability and Audit Readiness Directorate under the Assistant Secretary of the Army, Financial Management and Comptroller, to enhance the directorate's policies and procedures for (1) tracking and prioritizing all financial management-related audit findings and recommendations under its purview and (2) developing and monitoring CAPs for all such recommendations so that they include sufficient details, such as the criteria used to prioritize the CAPs, the recommended CAP elements, and the process for monitoring and documenting the progress and status of CAPs.

    Agency: Department of Defense: Department of the Army
    Status: Open

    Comments: The Army concurred with this recommendation. The Army stated that the Accountability and Audit Readiness Directorate has completed actions to enhance its current standard operating procedures to include (1) updating its corrective action plan (CAP) database and reporting tool, (2) documenting its reporting procedures, and (3) updating its CAP template to include additional elements recommended by the Implementation Guide for OMB Circular A-123. In addition, the Army stated that its policies and procedures include steps to incorporate external financial management-related audit findings assigned to the Accountability and Audit Readiness Directorate by the Internal Review Directorate and that the existing process the Army uses to prioritize findings and the related CAPs and to monitor the progress and status of CAPs has been documented.
    Recommendation: The Secretary of the Navy should, when finalizing the Navy's policies and procedures for identifying and tracking its CAPs to remediate financial management-related audit findings and recommendations, enhance this guidance so it includes detailed steps and specific procedures for confirming and validating the completeness and accuracy of the status of these audit findings and recommendations.

    Agency: Department of Defense: Department of the Navy
    Status: Open

    Comments: The Navy concurred with this recommendation. The Navy stated that it is (1) recording new findings and recommendations on a weekly basis in its deficiency database, (2) reviewing historical audits to ensure that previous findings and recommendations are recorded, and (3) collaborating with audit agencies to establish a process to reconcile the status of recommendations to ensure that its deficiency database accurately reports open and closed recommendations. The Navy also stated that these processes would be documented and implemented by January 31, 2017.
    Recommendation: The Secretary of the Air Force should design and document a comprehensive process to ensure that the complete universe of all financial management-related findings and recommendations from all audit sources is identified and tracked.

    Agency: Department of Defense: Department of the Air Force
    Status: Open

    Comments: The Air Force concurred with this recommendation. The Air Force stated that it will revise its existing process for identifying and tracking all financial management-related findings and recommendations from all audit sources. The Air Force stated that the process will include the procedures for summarizing the status of findings on a bi-monthly basis and providing a summary for the FIAR Governance Board meetings. The Air Force stated that it plans to implement this recommendation by January 31, 2018.
    Recommendation: The Secretary of the Air Force should update the Air Force's written policies and procedures for prioritizing financial management-related audit findings and recommendations from all audit sources and for developing and monitoring CAPs so that they include sufficient details. These procedures should include the following details: (1) The process to be followed for prioritizing the financial management-related findings and recommendations from audit sources. (2) The guidance for developing CAPs for all financial management-related audit findings and recommendations from all audit sources to include complete details, including the elements recommended by the Implementation Guide for OMB Circular A-123. (3) The process for monitoring the status of the CAPs for all financial management-related audit findings and recommendations from all audit sources, including the documentation to support any corrective actions taken, as recommended by the Implementation Guide for OMB Circular A-123.

    Agency: Department of Defense: Department of the Air Force
    Status: Open

    Comments: The Air Force concurred with this recommendation. The Air Force stated that it will revise its existing written policies and procedures for tracking and monitoring all financial management-related audit findings and recommendations. Specifically, the Air Force stated the these revised policies and procedures will (1) articulate prioritizing findings and recommendations; (2) provide guidance for developing detailed and actionable corrective action plans (CAPs), which address the condition and root cause of the findings and include elements recommended by OMB Circular A-123; and (3) provide clear guidance for monitoring the status and progress towards implementing and closing the CAPs. The Air Force plans to implement this recommendation by January 31, 2019.
    Recommendation: To improve DOD management's process for monitoring the military services' audit remediation efforts and to provide timely and useful information to stakeholders as needed, the Secretary of Defense should direct the Secretary of the Army, the Secretary of the Navy, and the Secretary of the Air Force to prepare and submit to the Under Secretary of Defense (Comptroller), on at least a bimonthly basis for availability at the FIAR Governance Board meetings, a summary of key information included in the CAPs that at a minimum contains the data elements recommended by the Implementation Guide for OMB Circular A-123 for each CAP related to critical capabilities for achieving audit readiness.

    Agency: Department of Defense
    Status: Open

    Comments: DOD concurred with this recommendation. DOD stated that it solicits input on a bi-monthly basis, on critical capability corrective action plans (CAPs) at a summary level. This information is provided routinely at regularly scheduled FIAR Governance Board meetings. DOD also stated that an updated notice of finding and recommendation (NFR) form template is being developed and will be provided to the military services to use for reporting this information so that it will include the recommended standard data elements outlined in OMB Circular A-123 to provide greater transparency into the nature of remediation plans. DOD also stated that FIAR Guidance will be updated to explicitly state that military services should include the OMB recommended standard data elements in CAPs.
    Recommendation: To reasonably assure that DOD management and external stakeholders have a comprehensive picture of the status of corrective actions needed for audit readiness throughout the department, the Secretary of Defense should direct the Under Secretary of Defense (Comptroller) to prepare a consolidated CAP management summary on a bimonthly basis that includes the data elements referred to above on the status of all CAPs related to critical capabilities for the military services and for the service providers and other defense organizations.

    Agency: Department of Defense
    Status: Open

    Comments: DOD partially concurred with this recommendation. According to DOD, the military services already provide summary-level updates on their critical capability corrective action plans (CAPs) at FIAR Governance Board meetings. It also stated that the template that is used to present CAPs to the FIAR Governance Board meetings at the summary level has been updated to align CAPs to critical capabilities. DOD still needs to address how all of the data elements from the Implementation Guide for OMB Circular A-123 will be summarized or otherwise reported for all CAPs pertaining to critical capabilities across the Department. In addition, DOD stated that because the DOD Comptroller takes responsibility for maintaining, monitoring, and reporting on the status of CAPs for the service providers and other defense organizations and of DOD-wide issues, the Comptroller will also summarize this information. However, DOD has not clarified what information from the military services will be summarized.
    Recommendation: To facilitate the development of a consolidated CAP management summary and the ability to efficiently respond to stakeholder requests, the Under Secretary of Defense (Comptroller) should develop and implement a centralized monitoring and reporting process that at a minimum (1) captures department-wide information on the military services' and other defense organizations' CAPs related to critical capabilities, including the standard data elements recommended in the Implementation Guide for OMB Circular A-123, and (2) maintains up-to-date information on the status of these CAPs.

    Agency: Department of Defense: Under Secretary of Defense (Comptroller)
    Status: Open

    Comments: DOD partially concurred with this recommendation. DOD stated that as outlined in the military services' responses to our recommendations directed to them, the Army, Navy, and Air Force have agreed to take the responsibility for developing, maintaining, and monitoring all CAPs at the level recommended by the Implementation Guide for OMB Circular A-123. Further, DOD stated that based on the Comptroller actively participating in monthly meetings with military services to gain an understanding of their CAPs and the information reported in bi-monthly FIAR Governance Board meetings, this provides the Department the ability to efficiently respond to stakeholder requests related to critical capabilities CAPs. However, DOD did not describe a centralized reporting process to ensure consistent standard data elements are provided in CAPs and that the information on the status of the CAPs is up to date.
    Director: Asif A. Khan
    Phone: (202) 512-9869

    7 open recommendations
    Recommendation: To improve the Navy's implementation of the FIAR Guidance for its General Fund FBWT FIP and facilitate efforts to achieve SBR auditability, the Secretary of the Navy should direct the Assistant Secretary of the Navy, Financial Management and Comptroller, to prepare a level I quantitative drilldown in accordance with the FIAR Guidance.

    Agency: Department of Defense: Department of the Navy
    Status: Open

    Comments: The Navy concurred with this recommendation and stated that it has actions planned, taken, or under way to prepare a quantitative drilldown. In August 2017 we contacted the Navy POC and requested an update on the status of this recommendation.
    Recommendation: To improve the Navy's implementation of the FIAR Guidance for its General Fund FBWT FIP and facilitate efforts to achieve SBR auditability, the Secretary of the Navy should direct the Assistant Secretary of the Navy, Financial Management and Comptroller, to prioritize audit readiness efforts for the key FBWT systems, prepare an audit strategy that identifies for each system (1) the Navy's plan for assessing the system to gain assurance that the system can be relied on; (2) the assessment types, including prioritizing the assessments based on qualitative and quantitative factors for each system; and (3) planned start and completion dates of these assessments for each system.

    Agency: Department of Defense: Department of the Navy
    Status: Open

    Comments: The Navy concurred with this recommendation and stated that it has actions planned, taken, or under way to prioritize audit readiness efforts for key FBWT systems. In August 2017 we contacted the Navy POC and requested an update on the status of this recommendation.
    Recommendation: To improve the Navy's implementation of the FIAR Guidance for its General Fund FBWT FIP and facilitate efforts to achieve SBR auditability, the Secretary of the Navy should direct the Assistant Secretary of the Navy, Financial Management and Comptroller, to prepare, in accordance with FIAR Guidance, the documentation of control activities and information technology general computer controls for significant systems; system certifications or accreditations; system, end user, and systems documentation locations; and hardware, software, and interfaces.

    Agency: Department of Defense: Department of the Navy
    Status: Open

    Comments: The Navy concurred with this recommendation and stated that it has actions planned, taken, or under way to document control activities, information technology general computer controls for significant systems, systems documentation locations, and hardware, software, and interfaces. In August 2017 we contacted the Navy POC and requested an update on the status of this recommendation.
    Recommendation: To improve the Navy's implementation of the FIAR Guidance for its General Fund FBWT FIP and facilitate efforts to achieve SBR auditability, the Secretary of the Navy should direct the Assistant Secretary of the Navy, Financial Management and Comptroller, to prepare an internal control assessment document for each assessable unit, summarizing control activities that are appropriately designed and in place.

    Agency: Department of Defense: Department of the Navy
    Status: Open

    Comments: The Navy concurred with this recommendation and stated that it has actions planned, taken, or under way to prepare an internal control assessment document. In August 2017 we contacted the Navy POC and requested an update on the status of this recommendation.
    Recommendation: To improve the Navy's implementation of the FIAR Guidance for its General Fund FBWT FIP and facilitate efforts to achieve SBR auditability, the Secretary of the Navy should direct the Assistant Secretary of the Navy, Financial Management and Comptroller, to perform sufficient testing for supporting documentation to reasonably determine whether such documentation, including that for key reconciliations, is available in a sustainable manner for future audit efforts.

    Agency: Department of Defense: Department of the Navy
    Status: Open

    Comments: The Navy concurred with this recommendation and stated that it has actions planned, taken, or under way to test the effectiveness of Fund Balance with Treasury controls, which includes assessing the availability of supporting documentation. In August 2017 we contacted the Navy POC and requested an update on the status of this recommendation.
    Recommendation: To improve the Navy's implementation of the FIAR Guidance for its General Fund FBWT FIP and facilitate efforts to achieve SBR auditability, the Secretary of the Navy should direct the Assistant Secretary of the Navy, Financial Management and Comptroller, to, for each fiscal year expected to be under audit, identify and address unusual and invalid transactions, abnormal balances, and missing data fields in the universe of collection and disbursement transactions.

    Agency: Department of Defense: Department of the Navy
    Status: Open

    Comments: The Navy concurred with this recommendation and stated that it has actions planned, taken, or under way to obtain monthly data from Defense Finance and Accounting Service on invalid Fund Balance with Treasury transactions. In August 2017 we contacted the Navy POC and requested an update on the status of this recommendation.
    Recommendation: To improve the Navy's implementation of the FIAR Guidance for its General Fund FBWT FIP and facilitate efforts to achieve SBR auditability, the Secretary of the Navy should direct the Assistant Secretary of the Navy, Financial Management and Comptroller, to update FBWT data flowcharts and narratives to fully describe the flow of data from the Navy's receipt of collection and disbursement transaction information through the financial statement line items, including the reversal of general ledger trial balance data generated by the automated system and other entries made within Defense Departmental Reporting System - Budgetary.

    Agency: Department of Defense: Department of the Navy
    Status: Open

    Comments: The Navy concurred with this recommendations and stated that it has actions planned, taken, or under way to develop procedures and documentation that describe the processes associated with the flow of data. In August 2017 we contacted the Navy POC and requested an update on the status of this recommendation.
    Director: Asif A. Khan
    Phone: (202) 512-9869

    1 open recommendations
    including 1 priority recommendation
    Recommendation: To help meet its financial management improvement and audit readiness goals, the Secretary of Defense should direct the Under Secretary of Defense (Comptroller) to reconsider the status of the three panel recommendations that DOD classified as met that we determined were partially met and take the necessary actions to reasonably assure that these recommendations have been met.

    Agency: Department of Defense
    Status: Open
    Priority recommendation

    Comments: In September 2015, we reported that DOD had completed action on 6 of the Committee Panel's 29 recommendations. However, we disagreed with DOD's reported status of met for 3 other recommendations related to (1) attestations on audit readiness to be included in each of the Financial Improvement and Audit Readiness (FIAR) Plan Status Reports; (2) inclusion of FIAR-related goals in Senior Executive Service performance plans, and rewarding and evaluating performances over time based on those goals; and (3) the review of audit readiness assertions by component senior executive committees. In response to our recommendation, in its November 2015 FIAR Plan Status Report, DOD revised the implementation status for these three recommendations from met to partially met and gave further consideration to actions needed to reasonably assure whether the recommendations had been met. In its May 2016 FIAR Plan Status Report DOD stated that it had completed corrective action on one of these three Committee Panel recommendations and reported actions on the other two recommendations as partially met. As of May 2017, DOD reported that its actions for all three Congressional Panel recommendations met those recommendations. However, DOD had not yet identified a method to reward executives based on evaluated performance on FIAR-related goals. In addition, DOD needs to continue to state in each FIAR Plan Status Report whether DOD is on track to be audit ready as of September 30, 2017. Therefore, as of August 30, 2017, this recommendation was still open.
    Director: Cary B Russell
    Phone: (202) 512-5431

    1 open recommendations
    Recommendation: To help DOD to improve the overall management of shipping containers for current and future contingencies, and to more fully incorporate recommendations into its policy and guidance and to ensure that improvements to container management will be sustained for future contingencies, the Secretary of Defense should develop a comprehensive list of recommendations made by DOD agencies and other organizations, and make the information available for policymakers to incorporate, as appropriate, into new or existing container-management policy and guidance. DOD could use our work as a starting point for this assessment.

    Agency: Department of Defense
    Status: Open

    Comments: DOD concurred with our recommendation and requested that GAO provide a listing of the recommendations we identified during this review to use as a starting point for its assessment. After we provided the listing of 95 recommendations, DOD added an additional 7 recommendations DOD identified through an independent assessment from the Institute for Defense Analysis. DOD then reviewed each of the recommendations for Departmental-level policy and guidance implications. As a result, after we completed our review in 2014, the Department has been making improvements in container management. For example, according to a DOD official, the department is revising DOD Instruction 4500.57, "Transportation and Traffic Management" to include specific container management responsibilities for combatant commanders, provisions for use of intermodal containers during contingency operations, container management definitions, and policy on use of the Joint Container Management System. Additionally, the Campaign Plan for Global Distribution 9033 is being revised to require each geographic combatant command to publish a Theater Distribution Plan and provides a standardized template to promote uniformity. Finally, according to DOD officials, the Universal Services Contract for sealift includes provisions for container detention and buyouts that are more favorable to the Government in reducing detention costs. As of September 2017, DOD has made progress toward implementation. For example, the department revised DOD Instruction 4500.57 "Transportation and Traffic Management" in March 2017 and included specific container management responsibilities for combatant commanders, provisions for use of intermodal containers during contingency operations, container management definitions, and policy on use of the Joint Container Management System. Also, DOD updated the Universal Services Contract 8 in January 2016 with provisions such as lower container buyout costs that are more favorable to the government in reducing costs than the contract from the prior year. Currently, the department's draft global campaign plan that includes commanders' responsibilities for managing containers is awaiting final approval. GAO is awaiting additional information from DOD such as other provisions in the container management contract that will assist the government in reducing costs, and final approval of DOD's plan.
    Director: Asif A. Khan
    Phone: (202) 512-9869

    8 open recommendations
    including 8 priority recommendations
    Recommendation: To ensure that DFAS is able to obtain the necessary assurance that its contract pay end-to-end process can produce, maintain, and sustain accurate, complete, and timely information in support of the components' and DOD-wide financial improvement and audit readiness efforts, the Under Secretary of Defense (Comptroller)/Chief Financial Officer should direct the Director of the Defense Finance and Accounting Service to address deficiencies in its Discovery Phase planning activities for contract pay by documenting its contract pay end-to-end process by developing the necessary flowcharts and narratives for those processes excluded from the FIP.

    Agency: Department of Defense: Office of the Under Secretary of Defense (Comptroller)/Chief Financial Officer
    Status: Open
    Priority recommendation

    Comments: This recommendation remains open. On July 14, 2016, and August 10, 2016, we met with DFAS and Office of the Undersecretary of Defense (Comptroller) officials to discuss the status of the recommendations for this report, clarify the documentation DFAS provided so far and additional documentation needed to address this recommendation. In addition, we spoke with DFAS officials on September 20, 2016, to clarify additional questions they had on our documentation needs. As of October 2016, DFAS officials told us that they were still working on improvements to their process documentation and controls in the contract pay area. DFAS recently provided documentation to support its actions related to this recommendation and we will continue to review relevant documentation and monitor the actions taken by DFAS.
    Recommendation: To ensure that DFAS is able to obtain the necessary assurance that its contract pay end-to-end process can produce, maintain, and sustain accurate, complete, and timely information in support of the components' and DOD-wide financial improvement and audit readiness efforts, the Under Secretary of Defense (Comptroller)/Chief Financial Officer should direct the Director of the Defense Finance and Accounting Service to address deficiencies in its Discovery Phase planning activities for contract pay by assessing the materiality (i.e., dollar activity and risk factors) of its processes, systems, and controls.

    Agency: Department of Defense: Office of the Under Secretary of Defense (Comptroller)/Chief Financial Officer
    Status: Open
    Priority recommendation

    Comments: This recommendation remains open. On July 14, 2016, and August 10, 2016, we met with DFAS and Office of the Undersecretary of Defense (Comptroller) officials to discuss the status of the recommendations for this report, clarify the documentation DFAS provided so far and additional documentation needed to address this recommendation. In addition, we spoke with DFAS officials on September 20, 2016, to clarify additional questions they had on our documentation needs. As of October 2016, DFAS officials told us that they were still working on improvements to their process documentation and controls in the contract pay area. DFAS recently provided documentation to support its actions related to this recommendation and we will continue to review relevant documentation and monitor the actions taken by DFAS.
    Recommendation: To ensure that DFAS is able to obtain the necessary assurance that its contract pay end-to-end process can produce, maintain, and sustain accurate, complete, and timely information in support of the components' and DOD-wide financial improvement and audit readiness efforts, the Under Secretary of Defense (Comptroller)/Chief Financial Officer should direct the Director of the Defense Finance and Accounting Service to address deficiencies in its Discovery Phase planning activities for contract pay by completing a memorandum of understanding with each of the components.

    Agency: Department of Defense: Office of the Under Secretary of Defense (Comptroller)/Chief Financial Officer
    Status: Open
    Priority recommendation

    Comments: This recommendation remains open. On July 14, 2016, and August 10, 2016, we met with DFAS and Office of the Undersecretary of Defense (Comptroller) officials to discuss the status of the recommendations for this report, clarify the documentation DFAS provided so far and additional documentation needed to address this recommendation. In addition, we spoke with DFAS officials on September 20, 2016, to clarify additional questions they had on our documentation needs. As of October 2016, DFAS officials told us that they were still working on improvements to their process documentation and controls in the contract pay area. DFAS recently provided documentation to support its actions related to this recommendation and we will continue to review relevant documentation and monitor the actions taken by DFAS.
    Recommendation: To ensure that DFAS is able to obtain the necessary assurance that its contract pay end-to-end process can produce, maintain, and sustain accurate, complete, and timely information in support of the components' and DOD-wide financial improvement and audit readiness efforts, the Under Secretary of Defense (Comptroller)/Chief Financial Officer should direct the Director of the Defense Finance and Accounting Service to address deficiencies in its Discovery Phase testing activities by validating the completeness and accuracy of the populations of transactions used to perform testing.

    Agency: Department of Defense: Office of the Under Secretary of Defense (Comptroller)/Chief Financial Officer
    Status: Open
    Priority recommendation

    Comments: This recommendation remains open. On July 14, 2016, and August 10, 2016, we met with DFAS and Office of the Undersecretary of Defense (Comptroller) officials to discuss the status of the recommendations for this report, clarify the documentation DFAS provided so far and additional documentation needed to address this recommendation. In addition, we spoke with DFAS officials on September 20, 2016, to clarify additional questions they had on our documentation needs. As of October 2016, DFAS officials told us that they were still working on improvements to their process documentation and controls in the contract pay area. DFAS recently provided documentation to support its actions related to this recommendation and we will continue to review relevant documentation and monitor the actions taken by DFAS.
    Recommendation: To ensure that DFAS is able to obtain the necessary assurance that its contract pay end-to-end process can produce, maintain, and sustain accurate, complete, and timely information in support of the components' and DOD-wide financial improvement and audit readiness efforts, the Under Secretary of Defense (Comptroller)/Chief Financial Officer should direct the Director of the Defense Finance and Accounting Service to address deficiencies in its Discovery Phase testing activities by documenting and executing an audit strategy or plan for application-level testing of system controls.

    Agency: Department of Defense: Office of the Under Secretary of Defense (Comptroller)/Chief Financial Officer
    Status: Open
    Priority recommendation

    Comments: This recommendation remains open. On July 14, 2016, and August 10, 2016, we met with DFAS and Office of the Undersecretary of Defense (Comptroller) officials to discuss the status of the recommendations for this report, clarify the documentation DFAS provided so far and additional documentation needed to address this recommendation. In addition, we spoke with DFAS officials on September 20, 2016, to clarify additional questions they had on our documentation needs. As of October 2016, DFAS officials told us that they were still working on improvements to their process documentation and controls in the contract pay area. DFAS recently provided documentation to support its actions related to this recommendation and we will continue to review relevant documentation and monitor the actions taken by DFAS.
    Recommendation: To ensure that DFAS is able to obtain the necessary assurance that its contract pay end-to-end process can produce, maintain, and sustain accurate, complete, and timely information in support of the components' and DOD-wide financial improvement and audit readiness efforts, the Under Secretary of Defense (Comptroller)/Chief Financial Officer should direct the Director of the Defense Finance and Accounting Service to address deficiencies in its Discovery Phase testing activities by coordinating with the components to classify all identified deficiencies as control deficiencies, significant deficiencies, and material weaknesses.

    Agency: Department of Defense: Office of the Under Secretary of Defense (Comptroller)/Chief Financial Officer
    Status: Open
    Priority recommendation

    Comments: This recommendation remains open. On July 14, 2016, and August 10, 2016, we met with DFAS and Office of the Undersecretary of Defense (Comptroller) officials to discuss the status of the recommendations for this report, clarify the documentation DFAS provided so far and additional documentation needed to address this recommendation. In addition, we spoke with DFAS officials on September 20, 2016, to clarify additional questions they had on our documentation needs. As of October 2016, DFAS officials told us that they were still working on improvements to their process documentation and controls in the contract pay area. DFAS recently provided documentation to support its actions related to this recommendation and we will continue to review relevant documentation and monitor the actions taken by DFAS.
    Recommendation: To ensure that DFAS is able to obtain the necessary assurance that its contract pay end-to-end process can produce, maintain, and sustain accurate, complete, and timely information in support of the components' and DOD-wide financial improvement and audit readiness efforts, the Under Secretary of Defense (Comptroller)/Chief Financial Officer should direct the Director of the Defense Finance and Accounting Service to address deficiencies in its Corrective Action Phase activities by assessing the population of implemented corrective action plans to determine whether the deficiencies we found in our nongeneralizable sample of DFAS's corrective action plans are more wide spread in the population.

    Agency: Department of Defense: Office of the Under Secretary of Defense (Comptroller)/Chief Financial Officer
    Status: Open
    Priority recommendation

    Comments: This recommendation remains open. On July 14, 2016, and August 10, 2016, we met with DFAS and Office of the Undersecretary of Defense (Comptroller) officials to discuss the status of the recommendations for this report, clarify the documentation DFAS provided so far and additional documentation needed to address this recommendation. In addition, we spoke with DFAS officials on September 20, 2016, to clarify additional questions they had on our documentation needs. As of October 2016, DFAS officials told us that they were still working on improvements to their process documentation and controls in the contract pay area. DFAS recently provided documentation to support its actions related to this recommendation and we will continue to review relevant documentation and monitor the actions taken by DFAS.
    Recommendation: To ensure that DFAS is able to obtain the necessary assurance that its contract pay end-to-end process can produce, maintain, and sustain accurate, complete, and timely information in support of the components' and DOD-wide financial improvement and audit readiness efforts, the Under Secretary of Defense (Comptroller)/Chief Financial Officer should direct the Director of the Defense Finance and Accounting Service to address deficiencies in its Corrective Action Phase activities by revising its FIAR status reports to accurately reflect the current status of its audit readiness efforts.

    Agency: Department of Defense: Office of the Under Secretary of Defense (Comptroller)/Chief Financial Officer
    Status: Open
    Priority recommendation

    Comments: This recommendation remains open. On July 14, 2016, and August 10, 2016, we met with DFAS and Office of the Undersecretary of Defense (Comptroller) officials to discuss the status of the recommendations for this report, clarify the documentation DFAS provided so far and additional documentation needed to address this recommendation. In addition, we spoke with DFAS officials on September 20, 2016, to clarify additional questions they had on our documentation needs. As of October 2016, DFAS officials told us that they were still working on improvements to their process documentation and controls in the contract pay area. DFAS recently provided documentation to support its actions related to this recommendation and we will continue to review relevant documentation and monitor the actions taken by DFAS.