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119-s-3902119th Congress

RECEIPTS Act

Sponsored By: Senator Ernst, Joni [R-IA]

Introduced

Summary

clean, auditable DoD financial statements are the bill's central goal. This bill would tie DoD authority, governance, and modernization funding to whether the Department achieves an external, unqualified audit, and it pushes automation to speed that result.

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  • Would change budget control rules for Defense leaders by raising a DoD-wide transfer limit to the greater of $10 billion or 1 percent of next-year DoD budget authority after an unqualified audit post-2028, and by setting component reprogramming thresholds such as $60 million for procurement and $45 million for operations.
  • Would impose new qualifications and duties on senior DoD financial officers if a clean audit is not achieved by 2028 and could require shifting non-defense payroll and finance work now done by the Defense Finance and Accounting Service.
  • Would authorize modernization spending to speed audits, including $150 million for automation and $150 million for business system replacements, require offsets by terminating equal contractor audit-support contracts, and create a DoD Audit Committee plus a mandated independent external auditor.

*If enacted, it would authorize up to $300 million for automation and systems replacement while requiring equal contractor offsets, making those investments budget-neutral as specified.*

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 2 benefits, 0 costs, 4 mixed.

Bigger DoD reprogramming limits

If enacted and DoD gets an unqualified audit for any year after fiscal year 2028, then in the next fiscal year the Secretary would be able to transfer the larger of $10 billion or 1% of the Department's budget authority without prior notice to Congress. If a military department or Defense agency gets a clean audit after fiscal year 2028, then in the next year that component would use higher reprogramming thresholds: $60 million for procurement program base changes, $30 million for research, $45 million for operations and maintenance budget activity changes, and $30 million for military personnel budget activity changes.

New DoD Audit Committee and auditor

If enacted, the Secretary of Defense would have to establish an Audit Committee chaired by the Deputy Secretary to select and oversee the audit of DoD financial statements. The Act would require the Department's audit to be performed by an independent external auditor. Appointees named by Armed Services Committee leaders would have to be Certified Public Accountants with federal audit experience, and certain senior DoD finance leaders would be excluded from committee membership.

CPA requirement for senior DoD finance nominees

If enacted and DoD fails to obtain an unqualified audit opinion for fiscal year 2028 by December 31, 2028, then starting January 1, 2029 nominees for Under Secretary of Defense (Comptroller) and Assistant Secretaries for Financial Management for Army, Navy, and Air Force would be required to be Certified Public Accountants. Those nominees would also need prior service as a chief financial officer or equivalent of a Federal or State agency or public company that received an unqualified audit during their service. The Deputy Secretary would also expand the Under Secretary's duties as prescribed.

Cut DoD reports and refocus DFAS

If enacted, the bill would stop certain statutory reporting requirements for a military department once that department's financial statements receive an unqualified audit opinion. The reports include annual and semi‑annual reports named in prior defense laws and some periodic acquisition reports. The bill would also require DFAS to change its mission and vision to say it is jointly responsible with the military services for accurately recording and reporting military financial transactions and for achieving a clean DoD audit.

DoD audit AI and systems funding

If enacted, the bill would authorize $150 million for automation and artificial intelligence to speed DoD financial audits and $150 million for business system replacements. Those authorizations would be in addition to other funds. If those amounts are appropriated, the Secretary would have to terminate existing contractor consulting contracts for audit and financial statement support in amounts equal to the appropriations.

Move DFAS non‑defense payroll services

If enacted and DoD fails to obtain an unqualified audit opinion for fiscal year 2028 by December 31, 2028, the Secretary of Defense would be required to transfer DFAS payroll and finance services that DFAS performs for other federal agencies to another U.S. government payroll and finance provider. The move would not include military retiree pay, the Department of Veterans Affairs, or the Executive Office of the President payroll.

Sponsors & CoSponsors

Sponsor

Ernst, Joni [R-IA]

IA • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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