DoD Audit Readiness: Answering "Yes" to Critical Questions for General Property, Plant, and Equipment
May 14, 2015
From the Government Institute
As the Department of Defense (DoD) works to achieve full audit readiness by fiscal year 2018, general property, plant, and equipment (PP&E) presents a substantial challenge. With reported net book value on DoD's unaudited financial statements for fiscal year 2014 of $619 billion, DoD’s PP&E is a huge investment that is located worldwide and ownership crosses the full spectrum of DoD commands, activities, and programs.
In practice, the ability to account for PP&E in a manner that meets federal accounting standards and would pass an auditor’s test represents one of DoD’s major challenges in moving to audit readiness. Achieving the objective will require command, activity, and program leaders and staff to be actively engaged to establish and sustain audit readiness.
Based on KPMG’s deep knowledge and experience in federal auditing practices, this white paper details the transformational change that impacts the entire DoD enterprise as the agency moves to a state of sustainable audit readiness while asking key questions that DoD will want to able to answer “yes” to.