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Thursday, June 02, 2011

Air Force in danger of missing 2017 deadline for clean audit

The Air Force's chances of being able to produce a clean audit opinion by 2017--the current congressional mandate for the entire Defense Department--could be running into trouble thanks to implementation of a modernized financial system going wrong.

The Air Force officially began (kicked off Milestone A) in April 2005 implementation of a financial management system known as the Defense Enterprise Accounting and Management Systems, hiring Accenture (NYSE: ACN) in 2006 on a 5-year, $79 million contract to implement the first of three planned DEAMS increments.

In May 2010, the report says, DEAMS crossed a threshold since it was unable to achieve a full deployment decision within 5 years after funds were first obligated, a statutory obligation.

As a result, the Air Force has folded elements from the planned second increment into the first increment and canceled the third increment, the report says.

"All offices recognize DEAMS must receive the authority to field its current capability beyond Scott AFB or risk non-compliance with Congressional mandate for CFO Act by 2017," the report adds.

Since undergoing a "critical program change" as a result of its failure to attain full deployment, DEAMS has been designated as a trial program for realignment under the Business Capability Lifecycle, the report states. BCL is a methodology developed by the Business Transformation Agency that emphasizes prototyping and is favored by Ashton Carter, the undersecretary of defense for acquisition, technology and logistics.

-David Perera, FierceGovernmentIT.com
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