If the DOD obtains an audit, the financial statements would no longer be covered by specified reporting requirements, and DOD would be authorized to transfer and reprogram certain funds.
However, if DOD fails to get an audit for fiscal year 2016, there would be additional qualifications for DOD financial management officials prescribed by the legislation, and the DOD could require additional requirements and powers for the officials.
Failure to obtain an audit for fiscal year 2016 would result in:
The cancellation of the transfer authority this legislation provides for;
A Chief Management Officer being appointed to oversee the management and administration of the DOD;
The transfer of jurisdiction of the Defense Finance and Accounting Service from DOD to the Department of the Treasury.
For failing to obtain an audit for fiscal years after 2017, the reprogramming authority this bill provides for would be canceled, and DOD would be prohibited from using funds for certain weapons systems, or platforms being acquired as a major defense acquisition program.
The DOD would be required to amend its acquisition policies to place restrictions and limitations on the procurement of certain Enterprise Resource Planning business systems.