The Solari Report / 2018 Annual Wrap Up / Part One note) by disclosing direct Federal agency expenditures and linking Federal contract, loan, and grant spending information to programs of Federal agencies to enable taxpayers and policy- makers to track Federal spending more effectively; (2) Establish government-wide data standards for financial data and provide consistent, reliable, and searchable government-wide spending data that are displayed accurately for taxpayers and policy-makers on USASpending.gov (or a successor system that displays the data); (3) Simplify reporting for entities receiving Federal funds by streamlining reporting requirements and reducing compliance costs while improving transparency; (4) Improve the quality of data submitted to USASpending.gov by holding Federal agencies accountable for the completeness and accuracy of the data submitted; (5) Apply approaches developed by the Recovery Accountability and Transparency Board to spending across the Federal Government. 20140930 2014 FY end. $1.9B in undocumentable adjustments against Treasury at HUD. HUD Treasury 20141223 Financial Improvement and Audit Readiness (FIAR) Plan Status Report issued by the Comptroller of DOD prepared in accordance with section 1003 of the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2010. The Report addresses issues impeding the reliability of the Department of Defense financial statements. Among findings: • “Moving from audit readiness into audit is a tremendous accomplishment for the Department. Going under audit will highlight remaining deficiencies through an auditor’s lens so that corrective actions can be implemented and full audit readiness achieved by FY 2018.” • DOD OIG rescinds a clean audit opinion on USMC (United States Marine Corps) on March 23, 2015, after learning of USMC transactions in U.S. Treasury suspense accounts that had not been previously reported and included in the audit. There will not be an SBA (General Fund schedules of budgetary activity) audit in FY 2015. • Department does not achieve the September 30, 2014, SBR (statement of budgetary resources) deadline but “progress has been made.” • Nearly 90 percent of the total DOD General Fund appropriations are under audit. The remainder of General Fund appropriations not under audit are undergoing examinations or audit readiness activities. • Most legacy systems were originally designed to address operational or mission requirements. Additionally, many were built prior to the Federal Financial Management Improvement Act (FFMIA) of 1996 (Public Law 104-208), which requires financial systems to comply with the U.S. Standard General Ledger (USSGL) and Treasury Financial Manual. As a result, these systems were not designed to meet federal standards for financial systems. Attracting and retaining qualified personnel to help the Department achieve audit readiness and sustain an audit ready state has been an ongoing challenge. DoD 20150203 S&P settles the lawsuit by the Department of Justice and nineteen states’ attorneys general and the District of Columbia for $1.375B. Corporate, Enforcement 20150500 015 FY end. $6.5T in undocumentable adjustments against Treasury at Army. DoD Treasury 20150930 The Inspector General’s report for the Army in fiscal year 2015 reports $6.5 trillion in unsupported journal voucher adjustments. Unsupported journal voucher entries and adjustments, as the result of agencies’ failure to correct system deficiencies, are considered red flags for potential fraud. Of note, on the asset side of the Army General Fund is an increase of $794B in Fund Balance with Treasury and, on the liabilities side, an increase of $929 billion in Accounts Payable. There is a net $1T increase in assets resulting from unsupported journal voucher adjustments and a $1T increase in net liabilities due to unsupported journal voucher adjustments. More than 16,000 records that might reveal either the source or the destination of some of that $6.5 trillion have been “removed.” DoD 20150930 HUD “material errors” in reporting are $278.5 billion, nearly eight times the size of HUD's $36 billion budget. The explanation given in the report is as follows (see https://www.hudoig.gov/sites/ default/files/3-16-2017-HouseHearing-Wriien-Tes[monyPDF.pdf, page 4): Of the $278.5 billion in errors, $159.4 billion was due primarily to (1) incorrect data entry, (2) omission of restated balances, or (3) incorrect data provided by HUD’s component entities (FHA and Ginnie Mae). The remaining $119.1 billion were due to inappropriate rounding adjustments. We found several instances in which rounding was performed to the nearest billion and hundred billion instead of the nearest million as required. DoD 20160116 Leidos Holdings Inc. announces it has entered into a definitive agreement with Lockheed Martin pursuant to which Leidos would combine with Lockheed Martin's realigned Information Systems & Global Solutions business in a Reverse Morris Trust transaction. Coporate, DoD 20160700 Thomas Hedges, “The Pentagon Has Never Been Audited, That’s Astonishing” (The Guardian). Media, DoD 1 8 8