,,ii  #aaith ,,congress  #b;d ,session  
,s4 #cijb  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,february #bd1 
#bjbf,ms4 ,ernst introduced the         
following bill2 which was read twice and
 referred to the ,committee on ,armed   
,services  ,a ,,bill  ,to provide for   
auditable financial statements for the  
,department of ,defense1 and for other  
purposes4  #a4 ,short title ,this ,act  
may be cited as the ,reviewing ,every   
,check and ,each ,invoice ,purchasing   
,troops' ,supplies ,act or the          
,,receipts ,act4  #b4 ,findings         
,congress makes the following findings3 
7#a7 ,section #i of ,article ,i of the  
,constitution of the ,united ,states    
requires all agencies of the ,federal   
,government1 including the ,department  
of ,defense1 to publish a regular       
,statement and ,account of the ,receipts
 and ,expenditures of all public ,money4
  7#b7 ,section #ceae7;a7 of title #ca1 
,united ,states ,code1 requires the     
agencies of the ,federal ,government1   

including the ,department of ,defense1  
to present auditable financial          
statements beginning not later than     
,march #a1 #bjjc4 ,the ,department has  
not complied with this law4  7#c7 ,the  
,federal ,financial ,management         
,improvement ,act of #aiif 7title ,,viii
 of division ,a of ,public ,law         
#ajd-bjh2 #ca ,u4,s4,c4 #ceab note7     
requires financial systems acquired by  
the ,federal ,government1 including the 
,department of ,defense1 to be able to  
provide information to leaders to manage
 and control the cost of ,government4   
,the ,department has not complied with  
this law4  7#d7 ,the financial          
management of the ,department of        
,defense has been on the ,high-,risk    
list of the ,government ,accountability 
,office1 which means that the           
,department is not consistently able to 
control costs2 ensure basic             
accountability2 anticipate future costs 
and claims on the budget2 measure       
performance2 maintain funds control2 and

 prevent and detect fraud1 waste1 and   
abuse4  7#e7 ,in #bjje1 the ,department 
of ,defense created a ,financial        
,improvement and ,audit ,readiness      
7,,fiar7 ,plan1 overseen by a           
directorate within the office of the    
,under ,secretary of ,defense           
7,comptroller71 to improve ,department  
business processes with the goal of     
producing timely1 reliable1 and accurate
 financial information that could       
generate an audit-ready annual financial
 statement4 ,in ,december #bjje1 that   
directorate1 known as the ,,fiar        
,directorate1 issued the first of a     
series of semiannual reports on the     
status of the ,financial ,improvement   
and ,audit ,readiness ,plan4  7#f7      
,section #ajjc of the ,national ,defense
 ,authorization ,act for ,fiscal ,year  
#bjaj 7,public ,law #aaa-hd2 #abc ,stat4
 #bdci7 required regular status reports 
on the ,financial ,improvement and      
,audit ,readiness ,plan described in    
paragraph 7#e71 and codified as a       

statutory requirement the goal of the   
,plan in ensuring that ,department of   
,defense financial statements were      
validated as ready for audit not later  
than ,september #cj1 #bjag4 ,in         
addition1 section #ajje of the ,national
 ,defense ,authorization ,act for       
,fiscal ,year #bjac 7,public ,law       
#aab-bci7 required that the statement of
 budgetary resources of the ,department 
of ,defense be validated as ready for   
audit by not later than ,september #cj1 
#bjad4 ,the ,department of ,defense did 
not meet these deadlines4  7#g7 ,at a   
,june #bjbe hearing in the ,committee on
 ,armed ,services of the ,senate1 the   
,department's ,acting ,comptroller      
committed to audit-ready budget         
statements for the ,department of ,war  
by #bjbh by stating1 ,within the next   
three years1 under the secretary's      
guidance1 the remainder of the          
department will achieve the clean audit 
opinion44  #c4 ,enhanced reprogramming  
authority following achievement by      

,department of ,defense and military    
departments of audit with unqualified   
opinion of its financial statements for 
fiscal years after fiscal year #bjbh    
7a7 ,department of ,defense generally   
,if the ,department of ,defense obtains 
an audit with an unqualified opinion on 
financial statements for any fiscal year
 after fiscal year #bjbh1 the limitation
 on the total amount of authorizations  
that the ,secretary of ,defense may     
transfer pursuant to general transfer   
authority available to the ,secretary in
 the national interest in the succeeding
 fiscal year shall be the greater of    
#aj1jjj1jjj1jjj or #a percent of the    
total budget authority available to the 
,department of ,defense for that        
succeeding fiscal year4  7b7 ,military  
departments1 defense agencies1 and      
defense field activities ,if a military 
department1 ,defense ,agency1 or        
,department of ,defense ,field ,activity
 obtains an audit with an unqualified   
opinion on its financial statements for 

any fiscal year after fiscal year #bjbh1
 the thresholds for reprogramming of    
funds of such military department1      
,defense ,agency1 or ,department of     
,defense ,field ,activity1 as the case  
may be1 without prior notice to         
,congress for the succeeding fiscal year
 shall be deemed to be the thresholds as
 follows3 7#a7 ,in the case of an       
increase or decrease to the program base
 amount for a procurement program1      
#fj1jjj1jjj4  7#b7 ,in the case of an   
increase or decrease to the program base
 amount for a research program1         
#cj1jjj1jjj4  7#c7 ,in the case of an   
increase or decrease to the amount for a
 budget activity for operation and      
maintenance1 #de1jjj1jjj4  7#d7 ,in the 
case of an increase or decrease to the  
amount for a budget activity for        
military personnel1 #cj1jjj1jjj4  7c7   
,rule of construction ,nothing in this  
section shall be construed to alter or  
revise any requirement 7other than a    
threshold amount7 for notice to         

,congress on transfers covered by       
subsection 7a7 or reprogrammings covered
 by subsection 7b7 under any other      
provision of law4  7d7 ,definitions ,in 
this section1 the terms program base    
amount1 procurement program1 research   
program1 and budget activity have the   
meanings given such terms in chapter #f 
of volume #c of the ,financial          
,management ,regulation of the          
,department of ,defense 7,do,d          
#gjjj4ad,r71 dated ,march #bjaa1 or any 
successor regulation4  #d4 ,cessation of
 applicability of reporting requirements
 regarding the financial statements of  
the ,department of ,defense after       
obtaining a clean audit opinion  7a7    
,cessation of applicability  7#a7       
,military departments ,the financial    
statements of a military department     
shall cease to be covered by the        
reporting requirements specified in     
subsection 7b7 upon the issuance of an  
unqualified audit opinion on such       
financial statements4  7#b7 ,department 

of ,defense ,the reporting requirements 
specified in subsection 7b7 shall cease 
to be effective when an unqualified     
audit opinion is issued on the financial
 statements of the ,department of       
,defense1 including each of the military
 departments and the other reporting    
entities defined by the ,office of      
,management and ,budget4  7b7 ,reporting
 requirements ,the reporting            
requirements specified in this          
subsection are the following3 7#a7 ,the 
requirement for annual reports in       
section #hib7;b7 of the ,ike ,skelton   
,national ,defense ,authorization ,act  
for ,fiscal ,year #bjaa 7,public ,law   
#aaa-chc2 #abd ,stat4 #dcaa74  7#b7 ,the
 requirement for semi-annual reports in 
section #ajjc7;b7 of the ,national      
,defense ,authorization ,act for ,fiscal
 ,year #bjaj 7,public ,law #aaa-hd2 #abc
 ,stat4 #bddj74  7#c7 ,the requirement  
for annual reports in section #hag7;d7  
of the ,bob ,stump ,national ,defense   
,authorization ,act for ,fiscal ,year   

#bjjc 7,public ,law #ajg-cad2 #aaf      
,stat4 #bfaj74  7#d7 ,the requirement   
for periodic reports in section #ijh7;b7
 of the ,defense ,acquisition           
,improvement ,act of #aihf 7,public ,law
 #ii-ejj2 #ajj ,stat4 #aghc-adj2 #aj    
,u4,s4,c4 #bcbf note7 and duplicate     
requirements as provided for in section 
#f of the ,defense ,technical           
,corrections ,act of #aihg 7,public ,law
 #ajj-bf2 #aja ,stat4 #bgd2 #aj         
,u4,s4,c4 #bcjb note74  #e4 ,additional 
duties and qualifications for failure to
 obtain audits with unqualified opinion 
of fiscal year #bjbh financial          
statements of the ,department of        
,defense  7a7 ,in general ,if the       
,department of ,defense fails to obtain 
an audit with an unqualified opinion on 
its financial statements for fiscal year
 #bjbh by ,december #ca1 #bjbh1 the     
following shall take effect on ,january 
#a1 #bjbi3 7#a7 ,additional             
qualifications and duties of ,,usd      
7,comptroller7  7,a7 ,qualifications    

,any individual nominated for           
appointment to the position of ,under   
,secretary of ,defense 7,comptroller7   
under section #ace of title #aj1 ,united
 ,states ,code1 shall be an individual  
who is a ,certified ,public ,accountant 
7,,cpa7 and has served-- 7i7 as the     
chief financial officer or equivalent   
position of a ,federal or ,state agency 
that has received an audit with an      
unqualified opinion on such agency's    
financial statements during the time of 
such individual's service2 or  7ii7 as  
the chief financial officer or          
equivalent position of a public company 
that has received an audit with an      
unqualified opinion on such company's   
financial statements during the time of 
such individual's service4  7,b7 ,duties
 and powers ,the duties and powers of   
the individual serving as ,under        
,secretary of ,defense 7,comptroller7   
shall include1 in addition to the duties
 and powers specified in section        
#ace7;c7 of title #aj1 ,united ,states  

,code1 such duties and powers with      
respect to the financial management of  
the ,department of ,defense as the      
,deputy ,secretary of ,defense 7acting  
in the capacity of ,chief ,management   
,officer of the ,department of ,defense7
 or a successor official in the         
,department of ,defense 7acting in such 
capacity7 may prescribe4  7#b7          
,additional qualifications and          
responsibilities of ,,asa for ,financial
 ,management  7,a7 ,qualifications ,any 
individual nominated for appointment to 
the position of ,assistant ,secretary of
 the ,army for ,financial ,management   
under section #gjaf of title #aj1       
,united ,states ,code1 shall be an      
individual who is a ,certified ,public  
,accountant 7,,cpa7 and who has served--
 7i7 as the chief financial officer or  
equivalent position of a ,federal or    
,state agency that has received an audit
 with an unqualified opinion on such    
agency's financial statements during the
 time of such individual's service2 or  

7ii7 as the chief financial officer or  
equivalent position of a public company 
that has received an audit with an      
unqualified opinion on such company's   
financial statements during the time of 
such individual's service4  7,b7        
,responsibilities ,the responsibilities 
of the individual serving as ,assistant 
,secretary of the ,army for ,financial  
,management shall include1 in addition  
to the responsibilities specified in    
section #gjaf7;b77#d7 of title #aj1     
,united ,states ,code1 such             
responsibilities as the ,deputy         
,secretary of ,defense 7acting in the   
capacity of ,chief ,management ,officer 
of the ,department of ,defense7 or a    
successor official in the ,department of
 ,defense 7acting in such capacity7 may 
prescribe4  7#c7 ,additional            
qualifications and responsibilities of  
,,asn for ,financial ,management  7,a7  
,qualifications ,any individual         
nominated for appointment to the        
position of ,assistant ,secretary of the

 ,navy for ,financial ,management under 
section #hjaf of title #aj1 ,united     
,states ,code1 shall be an individual   
who is a ,certified ,public ,accountant 
7,,cpa7 and who has served-- 7i7 as the 
chief financial officer or equivalent   
position of a ,federal or ,state agency 
that has received an audit with an      
unqualified opinion on such agency's    
financial statements during the time of 
such individual's service2 or  7ii7 as  
the chief financial officer or          
equivalent position of a public company 
that has received an audit with an      
unqualified opinion on such company's   
financial statements during the time of 
such individual's service4  7,b7        
,responsibilities ,the responsibilities 
of the individual serving as ,assistant 
,secretary of the ,navy for ,financial  
,management shall include1 in addition  
to the responsibilities specified in    
section #hjaf7;b77#d7 of title #aj1     
,united ,states ,code1 such             
responsibilities as the ,deputy         

,secretary of ,defense 7acting in the   
capacity of ,chief ,management ,officer 
of the ,department of ,defense7 or a    
successor official in the ,department of
 ,defense 7acting in such capacity7 may 
prescribe4  7#d7 ,additional            
qualifications and responsibilities of  
,,asaf for ,financial ,management  7,a7 
,qualifications ,any individual         
nominated for appointment to the        
position of ,assistant ,secretary of the
 ,air ,force for ,financial ,management 
under section #ijaf of title #aj1       
,united ,states ,code1 shall be an      
individual who is a ,certified ,public  
,accountant 7,,cpa7 and who has served--
 7i7 as the chief financial officer or  
equivalent position of a ,federal or    
,state agency that has received an audit
 with an unqualified opinion on such    
agency's financial statements during the
 time of such individual's service2 or  
7ii7 as the chief financial officer or  
equivalent position of a public company 
that has received an audit with an      

unqualified opinion on such company's   
financial statements during the time of 
such individual's service4  7,b7        
,responsibilities ,the responsibilities 
of the individual serving as ,assistant 
,secretary of the ,air ,force for       
,financial ,management shall include1 in
 addition to the responsibilities       
specified in section #ijaf7;b77#d7 of   
title #aj1 ,united ,states ,code1 such  
responsibilities as the ,deputy         
,secretary of ,defense 7acting in the   
capacity of ,chief ,management ,officer 
of the ,department of ,defense7 or a    
successor official in the ,department of
 ,defense 7acting in such capacity7 may 
prescribe4  7b7 ,public company defined 
,in this section1 the term public       
company has the meaning given the term  
issuer in section #b7;a77#g7 of the     
,sarbanes-,oxley ,act of #bjjb 7#ae     
,u4,s4,c4 #gbja7g774  #f4 ,requiring the
 ,secretary of ,defense to transfer     
non-defense operations of the ,defense  
,finance and ,accounting ,service       

7,,dfas7 after failure to obtain audits 
with unqualified opinion of fiscal year 
#bjbh financial statements of the       
,department of ,defense  7a7 ,in general
 ,if the ,department of ,defense fails  
to obtain an audit with an unqualified  
opinion on its financial statements for 
fiscal year #bjbh by ,december #ca1     
#bjbh1 the ,secretary of ,defense shall1
 in coordination with the ,secretary of 
the ,treasury and the ,director of the  
,office of ,management and ,budget      
7,,omb71 transfer the non-defense       
payroll and finance services performed  
by ,defense ,finance and ,accounting    
,service 7,,dfas7 to another payroll and
 finance service in the ,united ,states 
,government4  7b7 ,definition ,the term 
non-defense payroll and finance         
services-- 7#a7 refers to services      
,,dfas provides for other ,federal      
agencies other than the ,department of  
,defense1 including the ,department of  
,health and ,human ,services2 and  7#b7 
does not refer to any payroll and       

finance services provided for military  
retirees1 the ,department of ,veterans  
,affairs1 or the ,executive ,office of  
the ,president4  #g4 ,change in mission 
statement for ,,dfas ,the ,secretary    
shall direct ,,dfas to amend its mission
 statement and vision to incorporate the
 following principles3 7#a7 ,,dfas is a 
critical part of the ,united ,states    
military's financial management and     
accounting team and is not solely       
providing a pay and finance service to  
the military services4  7#b7 ,,dfas is  
jointly responsible with the military   
services for-- 7,a7 accounting for      
military spending by accurately and     
timely recording1 analyzing1            
summarizing1 and classifying military   
service financial transactions2  7,b7   
ensuring military service financial     
transactions are recorded in the        
military services' financial statements2
 and  7,c7 achieving an unqualified     
audit opinion for the ,department of    
,defense's financial statements4  #h4   

,authorization for artificial           
intelligence1 including agentic         
artificial intelligence1 to obtain      
audits with unqualified opinion of      
fiscal year #bjbh financial statements  
of the ,department of ,defense  7a7     
,sense of ,congress ,it is the sense of 
,congress that the ,department of       
,defense should1 to the maximum extent  
practicable1 utilize technology and     
software to automate its efforts to     
prepare and audit its financial         
statements and minimize the use of      
additional contractor personnel for this
 function4  7b7 ,authorization of       
appropriations ,in addition to amounts  
otherwise available1 there is authorized
 to be appropriated for the ,department 
of ,defense the following sums3 7#a7    
#aej1jjj1jjj for the deployment of      
automation and artificial intelligence  
to accelerate the audits of the         
financial statement of the ,department4 
7#b7 #aej1jjj1jjj for business systems  
replacements to accelerate and improve  

the accuracy of the financial statements
 of the ,department of ,defense pursuant
 to chapter #i;,a and section #bbbb of  
title #aj1 ,united ,states ,code4  7c7  
,offset required ,the ,secretary of     
,defense shall terminate for convenience
 existing contracts for contractor      
support for consulting services         
regarding the audit and preparation of  
financial statements in amounts equal to
 amounts appropriated pursuant to       
subsection 7b74  #i4 ,establishment of  
,department of ,defense ,audit          
,committee and amendment of ,department 
of ,defense ,inspector ,general role in 
audit of financial statements  7a7      
,establishment ,the ,secretary of       
,defense shall establish a committee to 
be known as the ,audit ,committee to    
select and oversee the audit of the     
financial statements of the ,department 
as performed by an independent external 
auditor4  7b7 ,membership ,the ,audit   
,committee shall be composed of the     
following members3 7#a7 ,the ,deputy    

,secretary of ,defense1 who shall serve 
as the ,chairman of the ,audit          
,committee4  7#b7 ,the ,chief           
,information ,officer of the ,department
 of ,defense4  7#c7 ,the ,deputy        
,inspector ,general 7,audit7 of the     
,department of ,defense4  7#d7 ,an      
individual appointed by the ,chairman of
 the ,committee on ,armed ,services of  
the ,senate4  7#e7 ,an individual       
appointed by the ,ranking ,member of the
 ,committee on ,armed ,services of the  
,senate4  7#f7 ,an individual appointed 
by the ,chairman of the ,committee on   
,armed ,services of the ,house of       
,representatives4  7#g7 ,an individual  
appointed by the ,ranking ,member of the
 ,committee on ,armed ,services of the  
,house of ,representatives4  7#h7 ,an   
individual appointed by the ,secretary  
of ,defense from the ,defense ,business 
,board4  7c7 ,excluded individuals ,the 
,audit ,committee shall not include the 
following individuals currently serving 
in the following roles3 7#a7 ,the ,under

 ,secretary of ,defense                 
7,comptroller7_/,chief ,financial       
,officer4  7#b7 ,the ,deputy ,under     
,secretary of ,defense 7,comptroller74  
7#c7 ,the ,director1 ,defense ,finance  
and ,accounting ,service 7,,dfas74  7d7 
,qualification ,members of the ,audit   
,committee appointed by the ,chairman of
 the ,committee on ,armed ,services of  
the ,senate and the ,chairman of the    
,committee on ,armed ,services of the   
,house of ,representatives shall be     
appointed to the ,commission from among 
individuals who are ,certified ,public  
,accountants 7,c,p,as7 and who have     
demonstrated knowledge and experience in
 the audit of ,federal agency financial 
statements4  7e7 ,audits by agencies    
,section #ceba7;a7 of title #ca1 ,united
 ,states ,code1 is amended-- 7#a7 by    
inserting 7#a7 after 7a72 and  7#b7 by  
adding at the end the following         
paragraph3  7#b7 ,the audit required    
under paragraph 7#a7 for the ,department
 of ,defense shall be performed by an   

independent external auditor4  4