IG: DoD May Miss Audit Deadlines because of Delays in System Upgrades

July 16, 2012

The Defense Department could miss deadlines for improving its financial audits because of delays in six modernization projects affecting financial management, logistics and other areas, the agency's inspector general said in a report released Monday.

Those projects — known as enterprise resource planning systems — have collectively experienced $8 billion in cost overruns and schedule delays of a year-and-a-half or more in development and implementation, the report said (PDF).

Besides cutting into hoped-for cost savings, the delays increase the odds that the Pentagon will not meet a statutory September 2017 target for passing a full financial audit. Defense Secretary Leon Panetta's 2014 goal of successfully completing a budget audit — one of four steps involved in meeting the full audit-readiness goal — is also at growing risk, the report said. 

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