Title 10 — Armed Forces
Part I · Chapter 9A — Audit
§ 240a. Audit of Department of Defense financial statements
Statutory text
The Secretary of Defense shall ensure that a full audit is performed on the financial statements of the Department of Defense for each fiscal year as required by section 3521(e) of title 31.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
National Defense Authorization Act for Fiscal Year 2018
Pub. L. 115–91 div. A title X § 1002(b)(1) · 131 Stat. 1283
Enacted · 10 U.S.C. § 240a
Added Pub. L. 115–91, div. A, title X, § 1002(b)(1), Dec. 12, 2017, 131 Stat. 1538, § 251
Source evidence
Code source credit
Added Pub. L. 115–91, div. A, title X, § 1002(b)(1), Dec. 12, 2017, 131 Stat. 1538, § 251Enacted provision · exact public law section
(1) In general.— Chapter 9A of title 10, United States Code, as added by subsection (a), is amended by inserting after the table of sections a new section 251 as follows: “§ 251. Audit of Department of Defense financial statements “(a) Annual Audit Required.— The Secretary of Defense shall ensure that a full audit is performed on the financial statements of the Department of Defense for each fiscal year as required by section 3521(e) of title 31. “(b) Annual Report on Audit.— The Secretary shall submit to Congress the results of the audit performed in accordance with subsection (a) for a fiscal year by not later than March 31 of the following fiscal year.” .John S. McCain National Defense Authorization Act for Fiscal Year 2019
Pub. L. 115–232 div. A title X § 1002(a)(1)(A) · 132 Stat. 1636
Changed · 10 U.S.C. § 240a
Pub. L. 115–232 renumbered section 251 of this title as this section
Source evidence
Code amendment note
Pub. L. 115–232 renumbered section 251 of this title as this section.Enacted provision · exact public law section
(A) In general.— Chapter 9A of title 10, United States Code, 10 USC 240a–240f. is amended by redesignating sections 251 through 254b as sections 240a through 240f, respectively.National Defense Authorization Act for Fiscal Year 2024
Pub. L. 118–31 div. A title X § 1061(g) · 137 Stat. 136
Struck · 10 U.S.C. § 240a
Pub. L. 118–31 struck out subsec. (a) designation and heading before “The Secretary”
Struck · 10 U.S.C. § 240a
Pub. L. 118–31 struck out subsec. (b). Text of subsec. (b) read as follows: “The Secretary shall submit to Congress the results of the audit performed in accordance with subsection (a) for a fiscal year by not later than March 31 of the following fiscal year.”
Source evidence
Code amendment note
Pub. L. 118–31 struck out subsec. (a) designation and heading before “The Secretary” and struck out subsec. (b). Text of subsec. (b) read as follows: “The Secretary shall submit to Congress the results of the audit performed in accordance with subsection (a) for a fiscal year by not later than March 31 of the following fiscal year.”Enacted provision · exact public law section
(g) Audit of Department of Defense Financial Statements.— Section 240a of title 10, United States Code, is amended— (1) by striking “(a) Annual Audit Required.—”; and (2) by striking subsection (b).
4 of 4 references resolved to an enrolled provision
Editorial Notes
Amendments2018–2023 · 2 rounds
2023
Pub. L. 118–31 struck out subsec. (a) designation and heading before “The Secretary” and struck out subsec. (b). Text of subsec. (b) read as follows: “The Secretary shall submit to Congress the results of the audit performed in accordance with subsection (a) for a fiscal year by not later than March 31 of the following fiscal year.”
2018
Pub. L. 115–232 renumbered section 251 of this title as this section.
Statutory Notes and Related Subsidiaries
Use of Technology Using Artificial Intelligence To Facilitate Audit of the Financial Statements of the Department of Defense for Fiscal Year 2026
Pub. L. 119–60, div. A, title X, § 1007, , 139 Stat. 1029, provided that:
“(a) Use of AI Technology for Audits.—
The Secretary of Defense, the Secretary of the Army, the Secretary of the Navy, and the Secretary of the Air Force shall encourage, to the greatest extent practicable, the use of technology that uses artificial intelligence or machine learning for the purpose of facilitating audits of the financial statements of the Department of Defense.
“(b) Implementation of AI Technology for Audits.—
The Director of the Chief Digital and Artificial Intelligence Office of the Department, in coordination with the Under Secretary of Defense for Research and Engineering and the Inspector General of the Department, shall oversee the adoption of artificial intelligence and machine learning technologies in support of financial management and enterprise business operations.”
Similar provisions were contained in the following prior act:
Requirement for Unqualified Opinion on Department of Defense Financial Statements
Pub. L. 118–31, div. A, title X, § 1005, , 137 Stat. 379, provided that: “The Secretary of Defense shall ensure that the Department of Defense has received an unqualified opinion on the financial statements of the Department by not later than .”
Review and Recommendations on Efforts To Obtain Audit Opinion on Full Financial Statements
Pub. L. 115–91, div. A, title X, § 1006, , 131 Stat. 1544, provided that:
“(a) In General.—
The Secretary of Defense may establish within the Department of Defense a team of distinguished, private sector experts with experience conducting financial audits of large public or private sector organizations to review and make recommendations to improve the efforts of the Department to obtain an audit opinion on its full financial statements.
“(b) Scope of Activities.—
A team established pursuant to subsection (a) shall—
“(1) identify impediments to the progress of the Department in obtaining an audit opinion on its full financial statements, including an identification of the organizations or elements that are lagging in their efforts toward obtaining such audit opinion;
“(2) estimate when an audit opinion on the full financial statements of the Department will be obtained; and
“(3) consider mechanisms and incentives to support efficient achievement by the Department of its audit goals, including organizational mechanisms to transfer direction and management control of audit activities from subordinate organizations to the Office of the Secretary of Defense, individual personnel incentives, workforce improvements (including in senior leadership positions), business process, technology, and systems improvements (including the use of data analytics), and metrics by which the Secretary and Congress may measure and assess progress toward achievement of the audit goals of the Department.
“(c) Reports.—
“(1) Report on establishment of team.—
If the Secretary takes action pursuant to subsection (a), the Secretary shall, not later than , submit to the congressional defense committees [Committees on Armed Services and Appropriations of the Senate and the House of Representatives] a report on the team established pursuant to that subsection, including a description of the actions taken and to be taken by the team pursuant to subsection (b).
“(2) Report on determination not to establish team.—
If as of , the Secretary has determined not to establish a team authorized by subsection (a), the Secretary shall submit to the Committees on Armed Services of the Senate and the House of Representatives on that date a report on the determination, including an explanation and justification for the determination.”
Credits
2017–2023 · 3 acts
- 2017Added Pub. L. 115–91, div. A, title X, § 1002(b)(1), , 131 Stat. 1538, § 251
- 2018renumbered § 240a, Pub. L. 115–232, div. A, title X, § 1002(a)(1)(A), , 132 Stat. 1945
- 2023amended Pub. L. 118–31, div. A, title X, § 1061(g), , 137 Stat. 400.
Show as published
(Added Pub. L. 115–91, div. A, title X, § 1002(b)(1), , 131 Stat. 1538, § 251; renumbered § 240a, Pub. L. 115–232, div. A, title X, § 1002(a)(1)(A), , 132 Stat. 1945; amended Pub. L. 118–31, div. A, title X, § 1061(g), , 137 Stat. 400.)