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Report | June 13, 2024

Audit of Financial Improvement and Audit Remediation Contracts for DoD Components (Report No. DODIG‑2024‑096)

Audit

The objective of this audit was to determine whether DoD Components effectively managed Financial Improvement and Audit Remediation (FIAR) contracts. In addition, we determined whether DoD Components awarded support contracts that met the FIAR goal of providing a reliable financial environment and whether they used appropriated funds efficiently when obtaining contractor support.

The National Defense Authorization Act of FY 2018 required the Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD, (USD[C]/CFO) to estimate the costs associated with correcting the DoD’s financial management deficiencies in its annual FIAR report to Congress. As of FY 2023, 18 of the DoD’s 29 stand‑alone audits and its own consolidated audit had received a disclaimer of opinion, meaning that the auditors were unable to obtain sufficient, appropriate audit evidence. From FY 2018 to FY 2022, the DoD reported spending approximately $4.11 billion on audit remediation and support in government and contractor costs, with minimal progress to correct the financial management deficiencies.