DEPARTMENT OF DEFENSE AUDIT AND INTERNAL CONTROLS: EVIDENCE FROM THE DEFENSE FINANCE AND ACCOUNTING SERVICE
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Authors
Nugent, Michael J.
Subjects
Defense Finance and Accounting Service
DFAS
Department of Defense
DOD
internal controls
audit
Inspector General
IG
DFAS
Department of Defense
DOD
internal controls
audit
Inspector General
IG
Advisors
Wang, Chong
Date of Issue
2021-06
Date
Publisher
Monterey, CA; Naval Postgraduate School
Language
Abstract
The purpose of this thesis is to investigate the Department of Defense (DOD) annual audit through analysis of the Defense Finance and Accounting Service (DFAS). This study addresses material weaknesses detailed in the FY 2020 DOD Inspector General (IG) audit by applying internal control standards to the policies and accounting practices of DFAS. The author finds that monitoring and control procedures implemented by DFAS do not meet objectives for producing accurate and auditable financial information. Analysis of the history of audits, GAO reports, and DOD IG inspections reveals patterns of insufficient corrective action that require remediation. Furthermore, antiquated IT systems, unclear accounting policies, and misaligned quality assurance monitoring programs contributed to numerous FY 2020 material weaknesses. Based on major findings, the author makes corrective policy recommendations for the consideration of DFAS and DOD leadership.
Type
Thesis
Description
Series/Report No
Department
Graduate School of Defense Management (GSDM)
Organization
Identifiers
NPS Report Number
Sponsors
Funder
Format
Citation
Distribution Statement
Approved for public release. Distribution is unlimited.
Rights
This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.