Since 1995, the DoD¿s business systems modernization program has been designated as high risk, and it continues to do so today. To assist in addressing DoD's business system modernization challenges, the Nat. Defense Authorization Act for FY 2005 contains provisions that require the DoD to take certain actions and to annually report to its congressional committees on these actions. This is an annual review of DoD's actions to comply with key aspects in the Act and related fed. guidance. To do so, the auditor reviewed, for ex., the latest version of DoD's business enterprise architecture and transition plan, investment mgmt. policies and procedures, and information in the dep¿t. business system data repositories. Includes recommendations. Illus.