DFAS marks 21st successful audit

DFAS HEADQUARTERS, November 25 , 2020 – The recently completed audit of Defense Finance and Accounting Service financial statements marks 21 consecutive years of successful reviews by independent auditors.

Williams Adley & Company of Washington, D.C. reported “no significant deficiencies or weaknesses" of DFAS' internal controls within the 2020 Working Capital Fund financial statements. In audit language, it's another "unmodified opinion."

The audit found the funds to be properly accounted for and that sufficient controls were in place to ensure the agency’s processes and systems were sound. During the review, auditors sent over 300 formal requests and DFAS personnel prepared nearly 3,000 documents for the auditors’ review.

As documented in their presentation to the DFAS Audit Committee, the auditors determined “key controls continued to operate effectively and the risk of material misstatement remained low” in eight critical operational areas:
  • Fund Balance with Treasury,
  • Revenue and Accounts Receivable,
  • Property, Plant and Equipment,
  • Human Resources and Payroll,
  • Financial Reporting,
  • Liabilities and Expenses,
  • Budgetary Resources, and
  • Information Technology.
“Once again, DFAS management and employees have shown the focus and expertise in managing and documenting the Agency’s financial and business practices, said Rosie Tinsley, DFAS chief financial officer. Our team continues to earn the trust of Department of Defense customers by efficiently managing the valuable resources they entrust to us.”

The remote work environment brought new challenges during this year’s audit; however, DFAS leveraged innovative virtual alternatives to meet with our Independent Public Accounting (IPA) firm on processes typically performed in person.  The sustained level of communication with our IPA and internal stakeholders was critical to ensure on-time delivery of all requested documentation and continue our audit success. 

DFAS is a Working Capital Fund agency of the Department of Defense providing payroll and accounting services to the military services, other Defense agencies and several federal departments. The goal of the agency is to “net zero” over time by being reimbursed for the exact cost of performing finance and accounting services for its customers. For 2020, the operating budget for DFAS was $1.44 billion­­­­­­­­­.