DOD Financial Management: Ineffective Risk Management Could Impair Progress toward Audit-Ready Financial Statements

In 2005, the DOD Comptroller established the FIAR Directorate, consisting of the FIAR Director and his staff, to develop, manage, and implement a strategic approach for addressing financial management deficiencies, achieving audit readiness, and integrating those efforts with other initiatives. Also in 2005, DOD first issued the FIAR Plan—a strategic plan and management tool for guiding, monitoring, and reporting on the department’s ongoing financial management improvement efforts and for communicating the department’s approach to addressing its financial management weaknesses and achieving financial statement audit readiness.