The purpose of this memorandum is to notify you that we are initiating the subject audit. The Chief Financial Officers Act of 1990, as amended, requires this audit. In accordance with the Act, the DoD Office of Inspector General is the principal auditor for the DoD Agency-Wide Consolidated Balance Sheet, Consolidated Statement of Net Cost, Consolidated Statement of Changes in Net Position, Combined Statement of Budgetary Resources, and related notes (financial statements) as of and for the fiscal year ending September 30, 2026. As principal auditor, the Office of Inspector General will apply a group audit approach that consolidates the results of audits of significant DoD Components, such as the Military Services, as well as work we conduct over balances that are not under audit by an independent public accounting firm. 

The objective of our audit is to determine whether the DoD Agency-Wide Financial
Statements as of the fiscal year ending September 30, 2026, taken as a whole, are presented
fairly, in all material respects, and in conformity with accounting principles generally accepted in
the United States of America. We will also determine whether these principles are consistently
applied. We will conduct this audit in accordance with the generally accepted government
auditing standards; Government Accountability Office/Council of the Inspectors General on
Integrity and Efficiency, “Financial Audit Manual”; and Office of Management and Budget
Bulletin No. 24-02, “Audit Requirements for Federal Financial Statements,” July 29, 2024, or
subsequent issues. As required by the standards, we will review the Required Supplementary
Information that includes Management’s Discussion and Analysis and Other Information
presented in the DoD Agency Financial Report. In addition, we will review internal controls
related to the reliability of financial reporting and compliance with provisions of laws,
regulations, contracts, and grant agreements that apply to these financial statements. However,
our objective is not to express an opinion on these controls.