We determined whether the Army fielded the Global Combat Support System–Army (GCSS–Army) with the proper functionality to provide reliable financial information and support audit readiness requirements.
Office of the Assistant Secretary of the Army (Financial Management and Comptroller) and GCSS–Army Product Management Office personnel did not field GCCS–Army with the proper functionality to comply with Treasury and DoD guidance, which is necessary to provide reliable financial information and support for audit readiness requirements.
This occurred because DoD and Army management did not have adequate controls, including procedures and annual reviews, in place to ensure GCSS–Army compliance with Treasury and DoD guidance. In addition, the Office of the Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD, and Office of the Deputy Chief Management Officer personnel did not provide adequate account attribute, chart of account, or posting logic guidance. This occurred because they did not have formal processes for reviewing and ensuring that DoD guidance is complete and consistent and aligns with Treasury guidance.
Although Army personnel have been responsive to correcting deficiencies identified during the audit, the Army has spent $725.7 million on a system that still has significant obstacles to overcome to comply with the Federal Financial Management Improvement Act and meet the FYs 2014 and 2017 auditability deadlines. This includes posting logic issues that resulted in abnormal balances of $703.7 million, or 23.5 percent, of the $3.0 billion GCSS–Army fourth quarter FY 2013 Trial Balance.
The Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD, in coordination with the DoD Deputy Chief Management Officer, should develop and implement procedures to validate that GCSS–Army complies with applicable guidance and internal control standards. They should also publish account attribute, chart of account, and posting logic guidance by the beginning of each fiscal year, with a deadline for system implementation. The Assistant Secretary of the Army (Financial Management and Comptroller), in coordination with the GCSS–Army Product Manager, should formalize and expand the annual review process of GCSS–Army to include a review of the account attributes, chart of accounts, and posting logic and develop an automated functionality for demonstrating GCSS–Army account postings.
Management Comments and Our Response
We request that the Under Secretary of Defense (Comptroller)/ Chief Financial Officer, DoD, provide additional comments to Recommendations 1.a.ii, 1.a.iii, and 1.c, and the Assistant Secretary of the Army (Financial Management and Comptroller) provide additional comments on Recommendations 2.b and 2.f.
This report is a result of Project No. D2013-D000FL-0163.000.