Pentagon IG Finds Little Progress Toward Audit Readiness

1 min read

The Defense Department‘s inspector general found continued failure of six enterprise resource planning programs designed to help create auditable financial statements for the Pentagon, reports Barry Rosenberg of Defense Systems.

According to the report, the department may not attain their goal to produce an auditable budget by 2014 or reach full financial statement audit readiness by 2017.

The report identified General Fund Enterprise Business System; Logistics Modernization Program; Defense Enterprise Accounting and Management System; Defense Agencies Initiative; Navy ERP; and Enterprise Business System-Energy Convergence and EBS-EProcurement as the defective ERPs.

Those ERP systems have an accumulated operating cost of $8 billion and are behind their original schedule from between one-and-a-half to 12.5 years, according to Rosenberg’s article.

The inspector general primarily holds the deputy chief management officer and the chief management officers of the military departments responsible for the delays, the report said.

Those officials were not able to verify business processes as stated in Public Law 111-84 or in the fiscal year 2010 defense authorization act, according to the report.

The report also says interruptions occurred because department officials depended heavily on self-compliance assertions of program management offices when authorizing the $302.7 million worth of funding.

The comptroller, chief financial officer and CMOs of the Army, Navy and Air Force concurred with the IG’s recommendations.

However, the Army and Air Force CMOs did not address the corrective actions.

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