WASHINGTON — The U.S. Army announced today the completion of its fifth annual audit of the financial statements for its General Fund and Working Capital Fund. The Army is sustaining its audit momentum and is demonstrating steadfast accountability of property and Soldier and civilian pay.
“Through the pillars of auditability and financial stewardship, the Army is dedicated to upholding sound financial management and developing and maintaining a culture that expects auditable records at all Army levels,” said Caral E. Spangler, Assistant Secretary of the Army for Financial Management and Comptroller. “Across the Army, leaders and commanders at all levels take an active role in improving transparency and accountability.”
The full version of the congressionally mandated Fiscal Year 2022 Army Annual Financial Report is available here.
Despite its auditor issuing a disclaimer of opinion, the Army achieved many improvements in Fiscal Year 2022 towards its goal of auditability, including:
- Transitioning its Universe of Transactions, or Army UoT, to a modern platform, including all existing reconciliations. The Army UoT will enable users across the enterprise to have improved data-analytics capabilities and to perform critical audit and financial management activities.
- Closing a Notice of Finding and Recommendation, or NFR, addressing approximately $1.2 billion in annual payments made in support of the Federal Employment Compensation Act. This closure, and others like it, enable the Army to better account for taxpayer dollars and achieve sustainable auditability.
- Remediating roughly 50% of the prior year NFRs associated with its information technology general controls across 20 systems the Army uses daily. Prioritizing its information technology environment promotes the Army’s ability to secure its decision-making data.
The Army is working to remediate the material weaknesses identified by its auditor by developing corrective action plans and internal controls to continuously improve upon its financial reporting environment. In parallel, the Army plans to maintain collaboration across the force and prioritize the remediation of significant audit findings inhibiting progress.