Letter to Patrick M. Shanahan, Acting Secretary of Defense - King, Perdue Lead Bipartisan Effort for Timely DoD Audit

Letter

Dear Acting Secretary Shanahan,

As members of the U.S. Senate Committees on Armed Services and the Budget, we write to ensure that the recent delegation of Deputy Secretary of Defense responsibilities to Comptroller Norquist will not have repercussions on the timeliness and thoroughness of the FY2019 DoD audit.

As you know, Mr. Norquist has served as Under Secretary of Defense (Comptroller)/Chief Financial Officer since June 2, 2017. In that role, he oversaw the timely completion of the Department's first-ever agency-wide audit, and has already begun the audit for fiscal year 2019. In addition to that critical responsibility, Mr. Norquist also began performing the duties of Deputy Secretary of Defense on January 1, 2019. Given the vast duties of the Deputy Secretary of Defense role, including managing the Pentagon's day-to-day business, it is important that the responsibility of overseeing the DoD audit is not in any way neglected.

We commend Mr. Norquist and the Department of Defense for finishing its first ever complete audit required by the Chief Financial Officers Act of 1990. This was a critical first step to bring greater transparency and accountability to the Pentagon; however, more progress must be made to reach a clean opinion. It is important to note that the benefits of the audit go beyond good stewardship of the taxpayer dollar. Not only will it improve business operations, but also it can enhance national security by ensuring accuracy in inventory and by identifying vulnerabilities in our cybersecurity. Ultimately, because only 5 of the 24 individual audits conducted received a passing grade, it is imperative that subsequent, annual audits continue as planned to properly measure progress.

According to DoD's Consolidated Financial Statement Audit Timeline, there are important target dates upcoming in the Financial Audit and Reporting Cycle. These include: 1) January 2019 brief to Congress on Audit & Corrective Action Plan Status; 2) March 31, 2019 submission date of the Results of FY 2018 Audits to Congress; 3) June 2019 report to Congress, including Audit Findings and Remediation Status; 4) and a June 2019 brief to Congress on Audit & Corrective Action Plan Status. The Department must continue to adhere to this timeline to ensure that the FY2019 final audit report will be completed by the November 15, 2019 deadline.

An unqualified opinion of the Department of Defense audit is essential to getting our fiscal house in order, ensuring taxpayer funds are spent effectively, and strengthening military readiness. Already, according to the Congressional Research Service, $972 million of taxpayer funds have been spent on the audit, remediation, and financial system fixes for the FY 2018 audit. As such, we look forward to your prompt response with your commitment to put forth the proper attention and resources to this year's upcoming audit, and your assurance of its timely completion.

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