homework
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WHO and WHAT is DOD?
DOD stands for Department of Defense and perhaps the largest and one of the most important agencies in the United States. The main person who is in charge and makes most of the major decision is The Secretary of Defense. Department of Defense is not just in the United States or only contain one military component. For Fiscal Year (FY) 2023, the Defense Budge Request is $773 Billion.
FUN FACT: Each of the mission has a different logo.
DOD’s Mission/Goal:
Ensuring that Americans are in security and assist countries
with military needs by providing military forces.
DOD’s Official Website:
https://www.defens e.gov/
DOD Demographic in U.S.:
• 836,000 Selected Reserve • 245,000 Ready Reserve • 735,000 Appropriated
civilian employees • 126,000 non-appropriated
villain employees
DEPARTMENT OF DEFENSE CITIZEN CENTRIC REPORT
DOD Overview
www.agacgfm.org/cc
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2021 ACCOMPLISHMENTS
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FINANCIALS
Expenses In Billions Civil Works 12.7$ Family Housing and Military Construction 14.4$ Procurement 112.2$ Military Retirement Benefts 141.2$ Research, Development, Test & Evaluation 145.6$ Military Personel 167.3$ Operations Rediness & Support 298.7$ Total 892.1$
NET PROGRAM CHANGES BEFORE LOSSES/GAINS FROM ACTUARIAL ASSYMPTION CHANGES FOR MILITARY RETIREMENT BENEFITS
$736.1
LOSSES/GAINS FROM ACTUARIAL ASSYMPTION CHANGES FOR MILITARY RETIREMENT BENEFITS
$82.8
AUDIT OPINION
Consolidated Agency-side audit performed by the DoD OIG
Disclaimer of Opinion on financial statements Unable to obtain sufficient appropriate audit
evidence to base an opinion
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HOW WE GOT HERE & THE WAY FOWARD
• When Congress passed the CFO act in 1990 many agencies began preparations to get audit ready.
• However, the DoD decided to kick the can down the road and didn’t begin audit readiness procedures until 2010. That’s 20 years after congress started requiring government agencies to begin work on being audit ready.
• The first DoD audit was not started until 2018 and almost every single DoD component received a disclaimer on their audit engagements.
• when auditing the federal government once the audit team reaches the conclusion of issuing a disclaimer the audit team will continue to work on the engagement.
• Currently many accounting firms are actively working with their DoD components to improve their auditability and creating an audit continuance methodology documenting the small steps that are taken. The audit continuance methodology is a unique audit document only used in the federal government world.
Example of one process and the many systems.
• Going forward in getting the DoD to a point of auditability it is crucial to close the 2,100 of notices of findings and recommendations (NFR) and 25 material deficiencies as of 2019.
• The Government accountability office has placed the DoD in the high-risk category in 1995 and continues to classify their finances as high risk today.
• The DoD has hundreds of GL systems and feeder systems that feed into GL systems across the many DoD components. The real issue is that a lot of the financial systems the DoD is using are outdated and must be replaced. Currently the DoD does not have a method of accurately identifying their systems and cannot identify which systems are key.