Case Study 2

DEFENSE SERVICES

Army General Fund Audit Readiness Support

United States Department of the Army

Company Background

Client Challenges

The Under Secretary of Defense (Comptroller) (USD(C)) memorandum dated 11 August 2009 directs the DoD Components to focus on improving the financial information most useful to leadership and achieving financial statement audit readiness.

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The Army has identified financial, logistical, and information technology-related impediments to obtaining a financial statement audit opinion, which are further complicated by the size, scope, and wide geographic distribution of operations.

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BDO's Solution

Leads teams to identify specific issues within business processes, controls, systems, and substantive evidence impeding financial statement auditability; advises on and develop corresponding corrective actions and best practices; and implements solutions across the Army enterprise.

Leads working groups with stakeholders from Logistics, Acquisitions, Budget, Contracting, and Information Systems, among other organizations, to address Army’s most significant financial statement audit impediments and prioritize and execute detailed action plans to address issues and drive progress towards audit success.

Value Delivered

RETURN TO BEGINNING

Provided enterprise-wide business process and controls support to progress financial improvement, audit readiness, and the validation of transactional detail and balances. Lead risk assessments as part of the Risk Management Internal Control (RMIC) Program; advised on policy and procedure improvements; identified key supporting documents; updated control logs; supported Army response to external audit controls testing for business process, system application, and general IT controls; and worked with control owners to address identified gaps through the development and implementation of corrective actions.

Led the development of a GAAP compliant approach for financially reporting Full Impairments of General Property, Plant & Equipment (GPP&E) resulting in the correction of a multimillion-dollar reporting error.

Developed internal processes to manage the issuance and delivery of 6,000+ provided by client (PBC) requests, 24,000+ samples, 9,000+ exceptions, and 600+ notice of findings and recommendations (NFRs).