Audits: audit of financial statements of Department of Defense components by independent external auditors
Audits Required.—
For purposes of satisfying the requirement under section 3521(e) of title 31 for audits of financial statements of Department of Defense components identified by the Director of the Office of Management and Budget under section 3515(c) of such title, the Inspector General of the Department of Defense shall obtain each year audits of the financial statements of each such component by an independent external auditor.
Selection of Auditors.—
The selection of independent external auditors for purposes of subsection (a) shall be based, among other appropriate criteria, on their qualifications, independence, and capacity to conduct audits described in subsection (a) in accordance with applicable generally accepted government auditing standards. The Inspector General shall participate in the selection of the independent external auditors.
Monitoring Audits.—
The Inspector General shall monitor the conduct of all audits by independent external auditors under subsection (a).
Reports on Audits.—
In general.—
The Inspector General shall require the independent external auditors conducting audits under subsection (a) to submit a report on their audits each year to—
the Under Secretary of Defense (Comptroller) as the Chief Financial Officer of the Department of Defense for the purposes of chapter 9 of title 31;
the Controller of the Office of Federal Financial Management in the Office of Management and Budget;
the head of each component audited; and
the appropriate committees of Congress.
Appropriate committees of congress defined.—
In this subsection, the term “appropriate committees of Congress” means—
the Committee on Armed Services, the Committee on Homeland Security and Governmental Affairs, and the Committee on Appropriations of the Senate; and
the Committee on Armed Services, the Committee on Oversight and Government Reform, and the Committee on Appropriations of the House of Representatives.
Relationship to Existing Law.—
The requirements of this section—
shall not be construed to alter the requirement under section 3521(e) of title 31 that the financial statements of the Department of Defense as a whole be audited by the Inspector General or by an independent external auditor, as determined by the Inspector General; and
shall not be construed to limit or alter the authorities of the Comptroller General of the United States under section 3521(g) of title 31.
Source
(Added and amended Pub. L. 115–91, div. A, title X, § 1002(e)(1)–(3),Notes
Editorial Notes
Codification
Amendments
Statutory Notes and Related Subsidiaries
Change of Name
Audit Requirement for Department of Defense Components
In General.—
During each of fiscal years 2024 through 2035, each component of the Department of Defense shall be subject to an independent audit. Any such component that fails to be subject to such an audit during any fiscal year shall have 1.5 percent of unobligated amounts available for the component be cancelled and returned to the general fund of the Treasury for deficit reduction, except as provided in subsection (b).
Exceptions.—
The following accounts are excluded from any reductions:
Military personnel, reserve personnel, and National Guard personnel accounts of the Department of Defense.
The Defense Health Program account of the Department of Defense.”
Transparency of Accounting Firms Used To Support Department of Defense Audit
In General.—
For all contract actions (including awards, renewals, and amendments) occurring more than 180 days after the date of the enactment of this Act [
Treatment of Statement.—
A statement setting forth the details of a disciplinary proceeding submitted pursuant to subsection (a), and the information contained in such a statement, shall be—
treated as confidential to the extent required by the court or agency in which the proceeding has occurred; and
treated in a manner consistent with any protections or privileges established by any other provision of Federal law.”