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Thursday, March 22, 2012

Army's payroll problems threaten auditability goals, GAO says

The Government Accountability Office will release a report this morning detailing problems with the Army's payroll system — challenges that threaten the Defense Department's ability to be audit-ready.

GAO found the Army could not identify a "complete population of Army payroll accounts" for fiscal 2010, said Asif Khan, director of financial management and assurance at GAO, in his written testimony,

It took the Army three months to provide a list of servicemembers who receive active-duty Army military pay, Khan said.

DoD also could not locate supporting documentation for some of its pay accounts, according to the GAO testimony.

Active Army military payroll was $46.1 billion for fiscal 2010 and therefore "significant to DoD's audit readiness goals," Khan said.

Congress has told the Pentagon it must reach full auditability of its consolidated financial statements by the end of 2017. Last fall, Defense Secretary Leon Panetta ordered the department to have its budgetary resources, one part of the overall audit, ready by 2014.

-Jolie Lee, FederalNewsRadio.com

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