The purpose of this memorandum is to inform you of our planned oversight that will begin
immediately. The Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD,
requested the audit of the Defense Logistics Agency (DLA) National Defense Stockpile
Transaction Fund Financial Statements. We contracted with the independent public accounting
firm of Ernst & Young, LLP (EY) to audit the DLA National Defense Stockpile Transaction Fund
Financial Statements as of and for the fiscal year ending September 30, 2026. The objective of
EY’s audit is to determine whether the FY 2026 DLA National Defense Stockpile Transaction
Fund Financial Statements and related notes are presented fairly and in conformity with
accounting principles generally accepted in the United States of America. The objective of our
project is to provide contract oversight of EY’s audit and determine whether EY complied with
the contract and generally accepted government auditing standards. 

We will rely on the Government Accountability Office/Council of the Inspectors General
on Integrity and Efficiency, “Financial Audit Manual,” Volume 2, June 2024, Section 670, “IG
Oversight of Audits Performed by Contracted Independent Public Accounting (IPA) Firms,” to
design and perform oversight procedures to review EY’s audit work and, if applicable, disclose
instances in which EY did not comply, in all material respects, with generally accepted
government auditing standards.