Testimony: Improving DOD's Financial Management
Description
Opening Statement by Asif Khan, Director, GAO's Financial Management & Assurance team to the House Committee on Oversight & Government Reform, Subcommittee on Government Operations, on April 29, 2025.
The Department of Defense (DOD) is responsible for about half of the federal government's discretionary spending and about 82 percent of the federal government's total physical assets. DOD's financial management and business systems modernization efforts have both been on GAO's High-Risk List since 1995. DOD has made some progress in improving its financial management efforts. However, more remains to be done to address significant remaining issues and for DOD to realize its goal of achieving an unmodified ("clean") audit opinion by the end of 2028.
This testimony discusses (1) GAO's high-risk areas of DOD financial management (including fraud risk management) and DOD business systems modernization; (2) DOD's efforts to address audit findings and associated impediments; and (3) DOD's progress, audit benefits, and next steps to achieving a clean audit opinion in 2028.
The Department of Defense (DOD) is responsible for about half of the federal government's discretionary spending and about 82 percent of the federal government's total physical assets. DOD's financial management and business systems modernization efforts have both been on GAO's High-Risk List since 1995. DOD has made some progress in improving its financial management efforts. However, more remains to be done to address significant remaining issues and for DOD to realize its goal of achieving an unmodified ("clean") audit opinion by the end of 2028.
This testimony discusses (1) GAO's high-risk areas of DOD financial management (including fraud risk management) and DOD business systems modernization; (2) DOD's efforts to address audit findings and associated impediments; and (3) DOD's progress, audit benefits, and next steps to achieving a clean audit opinion in 2028.
Date: Apr 29, 2025
Runtime: 00:05:12
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