Sec. 1004. Failure to obtain audit opinion on fiscal year full financial statements of the Department of Defense
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If the Department of Defense does not obtain an audit opinion on its full financial statements for fiscal year 2018, or any fiscal year thereafter, by March 31 of the succeeding calendar year, the annual rate of basic pay payable for each Secretary of a military department for the calendar year next following such succeeding calendar year shall be the annual rate of basic pay for positions at level III of the Executive Schedule pursuant to section 5313 of title 5, United States Code, rather than the annual rate of basic pay otherwise provided for the positions of Secretary of a military department by law.
If the Department does not obtain an audit opinion on its full financial statements for fiscal year 2018 by March 31, 2019, the Secretary of Defense shall establish within the Department a team of distinguished, private sector experts with experience conducting financial audits of large public or private sector organizations to review and make recommendations to improve the efforts of the Department to obtain an audit opinion on its full financial statements. The team established pursuant to paragraph
(1)shall— identify impediments to the progress of the Department in obtaining an audit opinion on its full financial statements, including an identification of the organizations or elements that are lagging in their efforts toward obtaining such audit opinion; estimate when an audit opinion on the full financial statements of the Department will be obtained; and consider mechanisms and incentives to support efficient achievement by the Department of its audit goals, including organizational mechanisms to transfer direction and management control of audit activities from subordinate organizations to the Office of the Secretary of Defense, individual personnel incentives, workforce improvements (including in senior leadership positions), business process, technology, and systems improvements (including the use of data analytics), and metrics by which the Secretary and Congress may measure and assess progress toward achievement of the audit goals of the Department. If the Secretary takes action pursuant to paragraph (1), the Secretary shall, not later than September 30, 2019, submit to the congressional defense committees a report on the team established pursuant to that paragraph, including a description of the actions taken and to be taken by the team pursuant to paragraph (2).