Defense Management: Foundational Steps Being Taken to Manage DOD Business Systems Modernization, but Much Remains to be Accomplished to Effect True Business Transformation Page: 23 of 33
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funding is for current services or modernization; however, not all
systems may be identifiable. In particular, it is not clear what is
covered by one funding type or category referred to as "All Other."
For fiscal year 2006, this category totaled about $1.2 billion and
included, for example, about $22.6 million specifically for financial
management. According to DOD officials,26 this category in the IT
budget includes system projects that do not have to be identified by
name because they fall below the $2 million reporting threshold for
budgetary purposes.
Finally, our preliminary work indicates that DOD's fiscal year 2006
IT budget submission identifies the designated approval authority
for most systems, but not all. In particular, the approval authorities
for 57 systems in the submission were not apparent. For example,
the Navy's C2 On-the-Move Network Digital Over-the-Horizon Relay
system and the Defense Commissary Agency's Enterprise Business
System have a designated approval authority of "Other."
Full compliance with the act's conditions relative to budgetary
disclosure is an important enabler of informed budgetary decision
making and oversight. Without such disclosure, whether incorrect
system classification, or mere oversights, the department's efforts to
improve its control and accountability over its business systems
investments are hindered, and the department and the Congress are
constrained in their ability to effectively monitor and oversee the
billions of dollars spent annually to maintain, operate, and
modernize DOD's business systems.
Investment Review and Approval Requirements
The fiscal year 2005 defense authorization act specifies actions that
the department is to take regarding the review and approval of
investments in business systems. Generally, the act sets up three
requirements for the department:
26 GAO-04-615.Page 21
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United States. Government Accountability Office. Defense Management: Foundational Steps Being Taken to Manage DOD Business Systems Modernization, but Much Remains to be Accomplished to Effect True Business Transformation, text, November 9, 2005; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc292747/m1/23/: accessed April 24, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.