Part 1. Understanding the Results of the Audit of the FY 2024 DoD Financial Statements , February 28 , 2025
Part 1. Understanding the Results of the Audit of the FY 2024 DoD Financial Statements , February 28 , 2025
From the report: “The DoD prepares the annual DoD Agency Financial Report and the Component‑level financial statements to provide an overview of the financial and operational performance of the DoD and its Components. The DoD issued its FY 2024 DoD Agency Financial Report, which included the FY 2024 DoD Agency‑Wide Financial Statements, on November 15, 2024. The DoD OIG performed an audit of the FY 2024 DoD Agency‑Wide Financial Statements and oversaw independent public accountants (IPAs) as they performed audits of the DoD Components’ financial statements. Collectively we performed the audits to determine whether the DoD and its Components presented their financial statements in accordance with Generally Accepted Accounting Principles (GAAP). GAAP establishes accounting concepts and principles to ensure that an organization’s financial statements are clear, consistent, and comparable.
Shortly after the enactment of the Chief Financial Officers (CFO) Act of 1990, which requires Federal agencies to prepare financial statements for audit, the DoD submitted the first Component financial statements to the DoD OIG for audit.1 In FY 2002, as shown in Figure 1, Congress limited the audit procedures and directed the DoD OIG to perform audit procedures on only information that DoD management asserted was ready for audit. It was not until 28 years after the enactment of the CFO Act that Congress required the DoD to undergo its first full‑scope financial statement audit. Over the last 7 years of full‑scope audits, the DoD has shown incremental progress toward obtaining a favorable audit opinion. Despite that progress, the DoD still has substantial work to do, and its corrective action plans show that DoD management does not expect to obtain a favorable audit opinion until FY 2028.”
Authors - Department of Defense Office of Inspector GeneralRelated Resources
