Conaway Response to Defense IG USMC Audit Retraction
“These developments are the difficult part of the ugly under-belly of the audit process, and to some degree are expected. That is why I have pushed the Department of Defense to begin auditing now, rather than wait until the 2017 deadline when the Department of Defense is required to be fully audit ready. Without the Department taking the steps towards financial management, they would not have uncovered these discrepancies.
“There are still many questions that need to be answered as we learn more about the nature of these transactions and their impact. As this process moves forward, the Defense and Finance and Accounting Service (DFAS) must accept responsibility for their part in these unreconciled differences and resolve them in a timely fashion. If DFAS cannot reconcile these transactions, the services will not be able to complete their individual audits, so it follows that it is imperative that these bum transactions be fixed.