DoD Financial Management - Annual Progress , February 17 , 2026
DoD Financial Management - Annual Progress , February 17 , 2026
From the document: "The Government Management Reform Act of 1994 required all federal agencies to prepare and submit audited financial statements to the Office of Management and Budget by 1997 and every year thereafter. Thirty years later, the Department of Defense is the only major federal agency that has yet to achieve an auditable financial statement. DoD financial management has been on the Government Accountability Office (GAO) High-Risk list since 1995, and currently meets only one of GAO’s five rating criteria.1 In order to track progress toward auditability across its array of Components and sub-agencies, the Department has issued an annual Financial Improvement and Audit Readiness (FIAR) Plan every year since 2005. The DoD FIAR Plan outlines milestones and actionable tasks for Components to implement to reach unqualified audit status. Additionally, it identifies the 20 DOD components that are individually subject to audit requirements and the status of their efforts to achieve unqualified or qualified audit opinions.
The following charts illustrate DoD Components’ progress with respect to reaching an unqualified audit opinion since the Department began tracking financial improvements in 2005 through its FIAR Plans. The first chart traces progress toward auditability for the military services, which collectively account for 80% of the Department’s budget authority. The second chart tracks the progress of other smaller DOD components that are individually subject to audit requirements."
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