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Code · STATUTE-COMPILATIONS · National Defense Authorization Act for Fiscal Year 2018 · Sec. 1002

Sec. 1002. CONSOLIDATION, CODIFICATION, AND IMPROVEMENT OF CERTAIN AUTHORITIES AND REQUIREMENTS IN CONNECTION WITH THE AUDIT OF THE FINANCIAL STATEMENTS OF THE DEPARTMENT OF DEFENSE

2,261 words·~10 min read·/statute-compilations/comps-13932/sec-1002

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## SEC. 1002 CONSOLIDATION, CODIFICATION, AND IMPROVEMENT OF CERTAIN AUTHORITIES AND REQUIREMENTS IN CONNECTION WITH THE AUDIT OF THE FINANCIAL STATEMENTS OF THE DEPARTMENT OF DEFENSE ###
(a)Establishment of New Chapter on Audit ####
(1)In general **[**[10 U.S.C. 251](/us/usc/t10/s251)**]** Part I of subtitle A of title 10, United States Code, is amended by inserting after chapter 9 the following new chapter: > > ## “CHAPTER 9A AUDIT > . ####
(2)Clerical amendments **[**[10 U.S.C. 101 note](/us/usc/t10/s101)**]** The tables of chapters at the beginning of subtitle A of title 10, United States Code, and part I of such subtitle, are each amended by inserting after the item relating to chapter 9 the following new item:“**9A. **Audit **251**”. ###
(b)Requirement for Audit of Financial Statements ####
(1)In general Chapter 9A of title 10, United States Code, as added by subsection (a), is amended by inserting after the table of sections a new section 251 as follows: > > ## “SEC. 251 Audit of Department of Defense financial statements > > **[**[10 U.S.C. 251](/us/usc/t10/s251)**]** > > > ### “(a) Annual Audit Required > > The Secretary of Defense shall ensure that a full audit is performed on the financial statements of the Department of Defense for each fiscal year as required by section 3521(e) of title 31. > > > ### “(b) Annual Report on Audit > > The Secretary shall submit to Congress the results of the audit performed in accordance with subsection
(a)for a fiscal year by not later than March 31 of the following fiscal year.” > . ####
(2)Conforming repeal Section 1003 of the National Defense Authorization Act for Fiscal Year 2014 (Public Law 113-66; 127 Stat. 842; 10 U.S.C. 2222 note) is repealed. ###
(c)Financial Improvement and Audit Remediation Plan ####
(1)In general Chapter 9A of title 10, United States Code, as added and amended by this section, is further amended by inserting after section 251, as added by subsection (b), a new section 252 consisting of— #####
(A)**[**[10 U.S.C. 252](/us/usc/t10/s252)**]** a heading as follows: > > ## “SEC. 252 Financial Improvement and Audit Remediation Plan” > ; and #####
(B)a text consisting subsection
(a)of section 1003 of the National Defense Authorization Act for Fiscal Year 2010 (10 U.S.C. 2222 note). ####
(2)Amendments in connection with codification Subsection
(a)of section 252 of title 10, United States Code, as added by paragraph (1), is amended— #####
(A)in paragraph (1), by striking “develop and”; and #####
(B)in paragraph (2)(B), by striking “of title 10, United States Code” and inserting “of this title”. ####
(3)Improvements Such section 252, as added and amended by this subsection, is further amended— #####
(A)in the subsection headings for subsection (a), by striking “Financial Improvement and Audit Readiness Plan” and inserting “Financial Improvement and Audit Remediation Plan”; #####
(B)in subsection (a)— ######
(i)in paragraph (1), by striking “Financial Improvement and Audit Readiness Plan” and inserting “Financial Improvement and Audit Remediation Plan”; and ######
(ii)in paragraph (2)— ######
(I)in subparagraph (A)— ######
(aa)by striking the matter preceding clause
(i)and inserting the following: > > ##### “(A) > > describe specific actions to be taken, including interim milestones with a detailed description of the subordinate activities required, and estimate the costs associated with—” > ; ######
(bb)in clause (ii), by striking “are validated as ready for audit” and all that follows and inserting “go under full financial statement audit, and that the Department leadership makes every effort to reach an unmodified opinion as soon as possible;”; and ######
(cc)by adding at the end the following new clauses: > > ###### “(iii) > > achieving an unqualified audit opinion for each major element of the statement of budgetary resources of the Department of Defense; and > > > ###### “(iv) > > addressing the existence and completeness of each major category of Department of Defense assets; and” > ; ######
(II)in subparagraph (B)— ######
(aa)by inserting “business” before “process and control”; ######
(bb)by striking “the business enterprise architecture and transition plan required by”; and ######
(cc)by striking the semicolon at the end and inserting a period; and ######
(III)by striking subparagraphs
(C)and (D); and #####
(C)by inserting after subsection
(a)the following new subsection (b): > > ### “(b) Report and Briefing Requirements > > > #### “(1) Annual report > > > ##### “(A) In general > > Not later than June 30, 2019, and annually thereafter, the Under Secretary of Defense (Comptroller) shall submit to the congressional defense committees a report on the status of the implementation by the Department of Defense of the Financial Improvement and Audit Remediation Plan under subsection (a). > > > ##### “(B) Elements > > Each report under subparagraph
(A)shall include the following: > > > ###### “(i) > > An analysis of the consolidated corrective action plan management summary prepared pursuant to section 253a of this title. > > > ###### “(ii) > > Current Department of Defense-wide information on the status of corrective actions plans related to critical capabilities and material weaknesses, including the standard data elements recommended in the implementation guide for Office of Management and Budget Circular A-123, for the armed forces, military departments, and Defense Agencies. > > > ###### “(iii) > > A current description of the work undertaken and planned to be undertaken by the Department of Defense, and the military departments, Defense Agencies, and other organizations and elements of the Department, to test and verify transaction data pertinent to obtaining an unqualified audit of their financial statements, including from feeder systems. > > > ###### “(iv) > > A current projected timeline of the Department in connection with the audit of the full financial statements of the Department, to be submitted to Congress annually not later than six months after the submittal to Congress of the budget of the President for a fiscal year under section 1105 of title 31, including the following: > > > ###### “(I) > > The date on which the Department projects the beginning of an audit of the full financial statements of the Department, and the military departments, Defense Agencies, and other organizations and elements of the Department, for a fiscal year. > > > ###### “(II) > > The date on which the Department projects the completions of audits of the full financial statements of the Department, and the military departments, Defense Agencies, and other organizations and elements of the Department, for a fiscal year. > > > ###### “(III) > > The dates on which the Department estimates it will obtain an unqualified audit opinion on the full financial statements of the Department, the military departments, the Defense Agencies, and other organizations and elements of the Department for a fiscal year. > > > ###### “(v) > > A current estimate of the anticipated annual costs of maintaining an unqualified audit opinion on the full financial statements of the Department, the military departments, the Defense Agencies, and other organizations and elements of the Department for a fiscal year after an unqualified audit opinion on such full financial statements for a fiscal year is first obtained. > > > ###### “(vi) > > A certification of the results of the audit of the financial statements of the Department performed for the preceding fiscal year, and a statement summarizing, based on such results, the current condition of the financial statements of the Department. > > > #### “(2) Semiannual briefings > > Not later than January 31 and June 30 each year, the Under Secretary of Defense (Comptroller) and the comptrollers of the military departments shall provide a briefing to the congressional defense committees on the status of the corrective action plan. > > > #### “(3) Critical capabilities defined > > In this subsection, the term ‘critical capabilities’ means the critical capabilities described in the Department of Defense report titled ‘Financial Improvement and Audit Readiness
(FIAR)Plan Status Report’ and dated May 2016.” > . ####
(4)Conforming repeal **[**[10 U.S.C. 2222 note](/us/usc/t10/s2222)**]** Section 1003 of the National Defense Authorization Act for Fiscal Year 2010 is repealed. ###
(d)Consolidated Corrective Action Plan Chapter 9A of title 10, United States Code, as added and amended by this section, is further amended by adding after section 252, as added and amended by subsection (c), a new section 253 consisting of— ####
(1)**[**[10 U.S.C. 253](/us/usc/t10/s253)**]** a heading as follows: > > ## “SEC. 253 Audit: consolidated corrective action plan; centralized reporting system” > ; and ####
(2)a text as follows: > “The Under Secretary of Defense (Comptroller) shall— > > > #### “(1) > > on a bimonthly basis, prepare a consolidated corrective action plan management summary on the status of key corrective actions plans related to critical capabilities for the armed forces and for the components of the Department of Defense that support the armed forces; and > > > #### “(2) > > develop and maintain a centralized monitoring and reporting process that captures and maintains up-to-date information, including the standard data elements recommended in the implementation guide for Office of Management and Budget Circular A-123, for key corrective action plans and findings and recommendations Department-wide that pertain to critical capabilities.” > . ###
(e)Audit of DoD Components by Independent External Auditors ####
(1)In general Chapter 9A of title 10, United States Code, as added and amended by this section, is further amended by adding after section 253, as added and amended by subsection (d), a new section 254 consisting of— #####
(A)**[**[10 U.S.C. 254](/us/usc/t10/s254)**]** a heading as follows: > > ## “SEC. 254 Audits: audit of financial statements of Department of Defense components by independent external auditors” > ; and #####
(B)a text consisting of the text of section 1005 of the National Defense Authorization Act for Fiscal Year 2016 (Public Law 114-92; 129 Stat. 861; 10 U.S.C. 2222 note). ####
(2)Amendments in connection with codification Section 254 of title 10, United States Code, as added by paragraph (1), is further amended— #####
(A)in subsections (d)(1)(A) and (e)(3), by striking “, United States Code”; and #####
(B)in subsections
(a)and (e)(2), by striking “, United States Code,”. ####
(3)Improvements Such section 254, as added and amended by this subsection, is further amended— #####
(A)in subsection (d)(1)— ######
(i)in subparagraph (A), by inserting “and the Chief Management Officer of the Department of Defense” before the semicolon; ######
(ii)in subparagraph (B), by striking “and” at the end; ######
(iii)by redesignating subparagraph
(C)as subparagraph (D); and ######
(iv)by inserting after subparagraph (B), the following new subparagraph (C): > > ##### “(C) > > the head of each component audited; and” > ; and #####
(B)in subsection (e)— ######
(i)by striking paragraph (1); and ######
(ii)by redesignating paragraphs
(2)and
(3)as paragraphs
(1)and (2), respectively. ####
(4)Conforming repeal **[**[10 U.S.C. 2222 note](/us/usc/t10/s2222)**]** Section 1005 of the National Defense Authorization Act for Fiscal Year 2016 is repealed. ###
(f)Use of Commercial Data Integration and Analysis Products ####
(1)In general Chapter 9A of title 10, United States Code, as added and amended by this section, is further amended by adding after section 254, as added and amended by subsection (e), a new section 254a consisting of— #####
(A)**[**[10 U.S.C. 254a](/us/usc/t10/s254a)**]** a heading as follows: > > ## “SEC. 254a Audits: use of commercial data integration and analysis products in preparing audits” > ; and #####
(B)a text consisting of subsections
(a)and
(b)of section 1003 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114-328; 130 Stat. 2380; 10 U.S.C. 2222 note). ####
(2)Amendments in connection with codification Section 254a of title 10, United States Code, as added by paragraph (1), is amended— #####
(A)in subsection (a)— ######
(i)by striking “of title 10, United States Code,” and inserting “of this title”; and ######
(ii)by striking “, as soon as practicable,”; and #####
(B)in subsection (b), by striking “this deployment” and inserting “deployment of technologies and services as described in subsection (a)”. ####
(3)Conforming repeal **[**[10 U.S.C. 2222 note](/us/usc/t10/s2222)**]** Section 1003 of the National Defense Authorization Act for Fiscal Year 2017 is repealed. ###
(g)Selection of Service Providers for Audit Services ####
(1)In general Chapter 9A of title 10, United States Code, as added and amended by this section, is further amended by adding after section 254a, as added and amended by subsection (f), a new section 254b consisting of— #####
(A)**[**[10 U.S.C. 254b](/us/usc/t10/s254b)**]** a heading as follows: > > ## “SEC. 254b Audits: selection of service providers for audit services” > ; and #####
(B)a text consisting of the text of section 892 of the National Defense Authorization Act for Fiscal Year 2017 (Public Law 114-328; 130 Stat. 2324; 10 U.S.C. 2331 note). ####
(2)Improvement Section 254b of title 10, United States Code, as added by paragraph (1), is amended by striking “and audit readiness services”. ####
(3)Conforming repeal **[**[10 U.S.C. 2331 note](/us/usc/t10/s2331)**]** Section 892 of the National Defense Authorization Act for Fiscal Year 2017 is repealed. ###
(h)Repeal of Certain Requirements in Connection With Reliability of DoD Financial Statements Section 1008 of the National Defense Authorization Act for Fiscal Year 2002 (10 U.S.C. 113 note) is amended by striking subsections (d), (e), and (f).
Connectionstraces to 11
6 references not yet in our index
  • 127 Stat. 842
  • 129 Stat. 861
  • 10 USC 254a
  • 130 Stat. 2380
  • 10 USC 254b
  • 130 Stat. 2324
Citation graph
cites case law
Sec. 1002
CONSOLIDATION, CODIFICATION, AND IMPROVEMENT OF CERTAIN AUTHORITIES AND REQUIREMENTS IN CONNECTION WITH THE AUDIT OF THE FINANCIAL STATEMENTS OF THE DEPARTMENT OF DEFENSE
U.S.C.§ 251
U.S.C.§ 101
Pub. L.Public Law 113-66
U.S.C.§ 2222
U.S.C.§ 252
U.S.C.§ 253
U.S.C.§ 254
Pub. L.Public Law 114-92
Pub. L.Public Law 114-328
Stat.127 Stat. 842
Stat.129 Stat. 861
Cite10 USC 254a
Cites 17 · showing 12Cited by 0 across 0 sources
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