DOD Audit Support

Introduction

VersaPro delivers a robust audit compliance solutions customized for DOD agencies.  We deliver such solutions to JPEO-CBD and US ARMY SOUTHCOM.

DOD is responsible for maintaining an audit compliant finance systems, a suite of COTS ERPs including GFEBS ERP, NAVY ERP, Air Force DEAMS and DOD DAI ERP, and intended to deploy these systems in an audit ready state. These ERPs were not deployed as audit ready and each command or agency has been continuously updating and improving their audit readiness. DOD has Centers of Excellence which have created robust audit compliance programs which requires additional team members to manage and support the audit compliance programs.

Background

The Chief Financial Officers (CFO) Act, the Government Management Reform Act (Public Law 103-356), and OMB Bulletin 01-09, “Form and Content of Agency Financial Statements,” requires DoD to prepare agency-wide financial statements in accordance with generally accepted accounting principles. The U.S. Department of Defense, Office of the Inspector General (OIG DoD), Defense Financial Auditing Service (DFAS) is currently implementing a long-range strategy to conduct audits of the DoD financial statements.

The number of policies and legislative acts affecting DOD finance community continues to grow:

  • Federal Financial Management Improvement Act (FFMIA)
  • Federal Managers’ Financial Integrity Act (FMFIA)
  • Chief Financial Officer Act of 1990 (CFO)
  • United States Standard General Ledger (USSGL)
  • Government Performance and Results Act (GPRA)
  • DoD Business Enterprise Architecture (BEA)
  • Standard Financial Information Structure (SFIS)
  • Government Management Reform Act (GMRA)
  • Clinger Cohen Act (CCA)
  • Relevant Office of Management and Budget (OMB) Circulars
  • Office of Federal Financial Management (OFFM) , formerly JFMIP

As a user of the DOD’s Financial Management Systems, agencies are responsible for maintaining an auditable financial statement. Agencies must produce audit compliant financial statements and provide a basis for relying on the line items and disclosures that are significant to the financial statements. Agencies will support an audit compliant financial statement as well as secure audit weaknesses in the Financial Management Systems by developing internal controls, standard operating procedures, reporting processes and implementing generally accepted accounting principals across the command.

Compliance Mission

As a result, it is an inherent mission for agencies to maintain a “clean” or “unqualified” statement of budgetary resources according to generally accepted accounting principals.

The need for audit compliance program management has emerged to maintain, grow and institutionalize agency’s audit compliance programs. It is foreseen that these positions will be needed through 2017 to support the changing audit compliance landscape.

We would love to share a white paper on our work at DOD agencies supporting audit compliance.  Please contact our offices to start a conversation and review benchmarks of other agencies.



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