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DISA Awarded Clean Audit

Fort George G. Meade, Md. -- DISA received its first clean audit decision Nov. 18 from an independent audit firm when it successfully completed a fiscal year (FY) 2011 Defense Working Capital Fund (DWCF) financial statement audit.

All major agencies of the U.S. government at the department level are required to be audited in accordance with the Chief Financial Officers Act of 1990.

The audit gives a comprehensive examination of the accuracy level of DISA’s financial transactions and provides stakeholders confidence that DISA is conducting business in a manner consistent with its mission, placing it among the ranks of only five other defense agencies to receive a clean audit.

Receiving a clean audit signifies that DISA has proven management control over the processes it currently uses to produce its financial data. The agency has a solid understanding of its financial transactions and is able to provide financial summaries that are accurate and reliable.

“A clean audit is validation by an independent source, following a stringent set of standards, that DISA’s financial records can be relied upon, “ said Barbara Crawford, chief of DISA’s Chief Financial Executive (CFE) Accounting Compliance and Operations Division and lead for both DISA’s Audit Support Team and Internal Control Team. “This achievement is exciting for us,” she said.

The steps put in place to support the audit readiness initiatives resulted in real cost savings the agency has passed on to mission partners. To date, DISA has realized more than $400 million in cost savings and cost avoidance, providing its mission partners with enhanced capabilities without a corresponding increase in rates, said Crawford.

DISA has two types of funding — funds appropriated by Congress and funds that fall in the category of DWCF. Money within the DWCF operates more like a non-profit, private enterprise, in that these funds come from DISA users and are spent to maintain operations. More than 75 percent of DISA’s funding comes from DWCF, which accounted for $6.8 billion of the FY2011 budget.

Unlike appropriated funds, DWCF do not have an expiration funding date and so auditors attempt to go back as far as they can for a first-time audit.

This first-time clean audit decision was in the making for five years due to DISA’s dynamic operating environment, user base changes, detailed processes, and time to gather historical supporting documentation needed to verify the accuracy of financial statements from years ago, explained Crawford.

For ease of retrieval in the future, DISA developed an electronic audit library, consisting of more than 46,700 documents used to address the 484 formal requests for detailed information from the auditors for the FY2011 audit.