One of the challenges facing the Department of Defense this year is the FIAR mandate.
The Financial Improvement and Audit-Readiness (FIAR) Plan has evolved and matured over the years; but, the current deadlines and regulations were set by Congress in the National Defense Authorization Act of 2010. The FIAR mandate requires that the DoD needs to be able to produce fully auditable financial statements by the end of September 2017.
The challenge here is that in order to have “fully auditable financial statements” the DoD will be required to capture and account for all serialized assets — a complete inventory of all Department property — not an easy task for such an enormous organization.
The IUID Challenge
A central element to the FIAR initiative is capturing and reporting on all of the unique asset information for all government property. To date, there is approximately 32.7 million serialized and non-serialized assets that have been reported to the IUID Registry, which has also become the master data source for government furnished property (GFP), but an estimated 100 million assets remain unregistered — and this number is increasing. What’s more, over 60 percent of the inventoried records are inaccurate or incomplete making the goal of asset Existence and Completeness for audit readiness even more difficult to achieve within the short timeframe leading up to the deadline.
As the September deadline gets closer and closer, military personnel and contractors are scrambling to comply with FIAR regulations in light of the scarcity of time and resources required to accurately report their assets while meeting military asset identification and reporting requirements. Asset identification policies like the Item Unique Identification (IUID) have been created to simplify and streamline the process of accounting for assets. Furthermore, iRAPT and the IUID Registry have become the DoD e-Commerce systems that are the gateway to reporting assets to all branches of the military.
In our latest eBook, we explain exactly what FIAR means for the Department of Defense, the Defense contracting community and, as a result, what this means for your branch of the services or business. Learn more about the 2017 deadlines and how to stay ahead of the FIAR compliance curve.