The Department of War announced a refined strategy this week designed to help the agency achieve a clean audit opinion by fiscal year 2028, marking what officials described as a significant step in strengthening financial accountability and reporting.
The updated approach was outlined in a joint memo from the Office of the Under Secretary of War (Comptroller) and the Office of Inspector General. Officials said the changes are intended to streamline financial reporting and accelerate progress toward meeting the department’s audit goals.
As part of the revised plan, the department is restructuring its financial reporting process and will first focus on securing a clean opinion on its fiscal year 2027 Working Capital Fund financial statements.
“We are taking a critical step forward by first focusing on achieving a clean opinion on the FY27 Working Capital Fund financial statements,” said Michael T. Powers, deputy under secretary of War for comptroller matters. “This milestone will lay the foundation for a clean audit opinion on the FY28 agency-wide financial statements and demonstrate the Department’s accountability to the American people and Congress in responsibly managing the funds entrusted to us.”
Under the new structure, the Office of Inspector General will contract with an independent public accounting firm to conduct audits of the consolidated Defense Working Capital Fund and agency-wide financial statements.
Inspector General Platte B. Moring III said the new approach reflects meaningful progress toward complying with the legal requirement that the department achieve a clean audit opinion by 2028.
“This new composite approach to auditing and its implementation reflects meaningful progress toward compliance with the statutory mandate for the Department to achieve a clean audit opinion by 2028,” Moring said. “These refinements maintain the Inspector General’s independence while ensuring that audits meet all statutory and professional standards.”
Officials described the plan as a historic step in the department’s long-running audit effort and said it reflects a broader push to improve transparency, accountability, and trust in how taxpayer dollars are managed.
“This effort represents a historic step forward in the Department’s audit journey,” said Jules “Jay” W. Hurst III, who is performing the duties of under secretary of War, comptroller. “This strong partnership between the Inspector General and the Comptroller underscores our unified commitment to building a culture of accountability and trust, ensuring the Department meets the highest standards of transparency and integrity.”