Federal Manager's Daily Report

Acquisition and contract management, cybersecurity, and financial management were among the top 10 management challenges for DoD listed in the latest IG compilation, in addition to warfighting-related tasks specific to that department.

The report says that acquisition and contract management has been a high-risk item for many years, and “although Congress and the DoD have initiated reforms designed to improve the acquisition of major weapon systems, many DoD programs fall short of cost, schedule, and performance expectations. As a result, the DoD regularly pays more than anticipated, buys less than expected, and in some cases, delivers less capability than its contracts require.”

While DoD also has been focusing on cybersecurity, incidents continue to occur and there are more than 100 open recommendations from prior IG reports in the area. Also, the department continues to suffer from a shortage of both civilian and military personnel with the needed skills, it said.

“The DoD is the only federal agency that has never undergone a full financial statement audit,” it adds. “Moreover, the lack of a favorable audit opinion on the DoD financial statements is the major impediment to a successful audit of the U.S. government. Long-standing financial management challenges continue to impair the DoD’s ability to provide reliable, timely, and useful financial and managerial information to support reported financial statement balances. Additionally, the lack of reliable financial information prevents its full use in operating, budgeting, and policy decisions.”