DFAS Press Release 010120: DFAS marks 20th successful audit

Defense Finance
and Accounting Service
Providing payment services of the U.S. Department of Defense
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DFAS marks 20th successful audit

DFAS HEADQUARTERS, Jan. 8, 2020 – The recently completed audit of Defense Finance and Accounting Service financial statements marks 20 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 2019 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 240 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 primary areas. These areas are:

  • 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.

“For two decades, DFAS has proven its expertise in managing and documenting the agency’s financial and business practices,” said Rosie Tinsley, DFAS chief financial officer. “As a Working Capital Fund, it’s important that our customers and American taxpayers have confidence that we are capable stewards of the resources entrusted to DFAS.”

A significant part of the agency’s audit success has come from a mutual understanding between auditor and auditee.

Kola Isiaq, Williams Adley’s audit partner for DFAS, credited that relationship for the continued success.

“Throughout the past four years of being the independent auditors for DFAS WCF, we have collaborated with DFAS management to institute communication protocols that have resulted in:

  • Open and honest communication to ensure there are no surprises for either party
  • Early notice of planned implementation and changes that might have financial statement or audit impact so that risks and concerns are addressed
  • Work is performed and deliverables are submitted on time.”

While this is the 20th DFAS unmodified opinion, the team is already hard at work reviewing lessons learned to improve DFAS controls and practices to continue successes in future audits.

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 2019, the operating budget for DFAS was over $1.4B.

 

 

Page updated January 8, 2020