Financial Management

The Department of Defense's comprehensive financial management reforms are intended to streamline and redesign financial processes and organizations for optimum effectiveness.

The Financial Management Improvement Plan is DoD's strategic long-term "blueprint" for financial management reform.

Financial Management Improvement Plan: concept of operations; finance, accounting and program feeder systems; auditable financial statements The Plan includes the Department's financial management concept of operations and addresses improvement efforts for financial systems and program feeder systems. The goal is to achieve auditable financial statements.

Overhaul of Financial Operations & Systems By standardizing systems, consolidating operating locations, and implementing more modern technologies, the Defense Finance and Accounting Service, or D-FAS, has reduced costs while improving the quality of services.

The Performance Scorecard for finance and accounting systems shows that in 1991 DoD was operating 324 separate finance and accounting systems.

By 1998, that number dropped to 109 systems…a 66 percent decrease.

And by 2003, DFAS expects to reduce the number of systems to 32 …representing the largest financial system overhaul ever undertaken by DoD.

Updated: 12 Apr 1999