What GAO Discovered
The Air Drive depends on its monetary administration techniques to assist handle division operations and assist core accounting actions, reminiscent of sustaining monetary information and making funds. Its surroundings is complicated and consists of a number of techniques that aren’t absolutely built-in, stopping Air Drive administration from acquiring well timed, correct, and dependable info on the outcomes of its enterprise operations. To deal with these points, the Air Drive has been migrating from its legacy, or growing old, monetary administration techniques to extra fashionable goal techniques. One such key goal is the Protection Enterprise Accounting and Administration System (DEAMS), which is to be the Air Drive’s core accounting and finance system. DEAMS has been deployed incrementally to Air Drive customers since 2005, and the Air Drive plans to broaden its use sooner or later (see determine).
Air Drive’s Protection Enterprise Accounting and Administration System (DEAMS) Timeline
The Air Drive has not adopted main practices, reminiscent of growing a migration plan to information its transition from the present legacy system to DEAMS. As a substitute, the Air Drive determined to pursue a twin processing coverage wherein the legacy and goal techniques would each proceed to function for no less than the following 10 years. The continued use of the legacy system implies that decision of its deficiencies could be delayed for a few years. Additional, related inner management weaknesses would additionally persist.
Auditors have recognized quite a few points associated to the Air Drive’s broader monetary administration techniques, together with DEAMS. For fiscal 12 months 2020, auditors reported deficiencies together with nonintegrated Air Drive monetary techniques, an inadequate monetary reporting course of, and a scarcity of controls within the design of knowledge techniques. Whereas the Air Drive has some efforts beneath strategy to handle monetary administration system–associated deficiencies, it doesn’t have a complete technique encompassing the whole lot of its monetary administration techniques modernization efforts. With out such a complete monetary administration system technique, will probably be tougher for the Air Drive to report correct and dependable monetary info. Furthermore, the Air Drive will proceed to face difficulties growing and absolutely implementing Air Drive–vast corrective motion plans to handle the system-related points that auditors recognized. These points have led to the Air Drive not having the ability to present enough, applicable audit proof to assist the reported quantities in its monetary statements.
Why GAO Did This Examine
The Air Drive is at the moment modernizing and migrating its monetary administration techniques as a part of a broader effort to enhance monetary administration operations and put together auditable monetary statements. Profitable system migration is vital to the Air Drive addressing weaknesses that monetary assertion auditors have recognized.
The Authorities Administration Reform Act of 1994 features a provision for GAO to audit the U.S. authorities’s consolidated monetary statements. This report examines the extent to which the Air Drive is (1) following main practices for its monetary administration system migration and (2) planning to handle the monetary administration system–associated points that auditors recognized.
GAO reviewed steering on system migration main practices; noticed DEAMS program operations; reviewed documentation associated to the Air Drive’s migration efforts and technique, monetary assertion audit outcomes, and efforts to resolve system deficiencies; and interviewed cognizant officers.