Improving financial management at the Department of Defense : hearing before the Committee on Homeland Security and Governmental Affairs, United States Senate, One Hundred Thirteenth Congress, second session, May 13, 2014.

Major defense acquisition programs (MDAP) are used to acquire, modernize, or extend the service life of DoD¿s most expensive assets, primarily military equipment. A new law required this review of weaknesses in DoD's operations that affect the reliability of financial information for assets acquired through MDAP. To do so, this report identified and reviewed previously reported weaknesses that impair DoD's ability to provide reliable cost information for military equipment acquired through MDAPs, and determined what actions DoD has taken to address them. Includes recommendations. Charts and tables.

Recent audits of the fiscal year 1998 financial statements for DOD and the individual military services, performed by the DOD Inspector General (IG) and the service audit agencies, and our report on the U.S. government's financial statements have highlighted many critical DOD financial management problems. These problems not only hamper the department's ability to produce timely and accurate financial management information, but also significantly impair efforts to improve the economy and efficiency of its operations. Key areas of concern relate to ineffective asset control and accountability, which affects DOD's visibility over weapons systems and inventory, and unreliable cost and budget information, which affects DOD's ability to effectively measure performance, reduce costs, and maintain adequate funds control.