The Department of War has introduced a refined strategy to achieve a clean audit opinion by fiscal year 2028. In a joint memo published Tuesday, the Office of the Under Secretary of War (Comptroller) and the Office of Inspector General outlined upcoming changes to the department’s financial reporting structure and audit approach to ensure audit readiness.
The effort builds on prior commitments from department leadership to meet annual milestones and deliver a clean audit by 2028 or sooner.
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How Is the Pentagon Refining Its Audit Strategy?
The department is revising its financial reporting framework to streamline the audit process, initially focusing on securing a clean audit opinion for its fiscal year 2027 Working Capital Fund financial statements, according to Michael Powers, who was appointed deputy under secretary of war (comptroller) in December.
Powers said the initial objective “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.”
Jules Hurst III, performing the duties of under secretary of war (comptroller), described the initiative as a “historic step forward” in the department’s audit journey.
“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,” Hurst added.
What Role Will the Inspector General Play in the Audit Process?
Under the revised framework, the Office of Inspector General will engage an independent public accounting firm to audit the agency-wide financial statements and the consolidated Defense Working Capital Fund.
Platte Moring III, inspector general at the Pentagon, said the approach preserves the IG’s independence while ensuring compliance with statutory and professional standards.
Officials emphasized that close coordination between the comptroller’s office and the IG will be critical to sustaining momentum, improving audit outcomes and advancing a culture of transparency across the DOW.
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