A bill to provide for the audit of financial statements of the Department of Defense for fiscal year 2017 and fiscal years thereafter, and for other purposes.

Summary: Department of Defense Financial Accountability Act of 2009 - Requires annual audits of the financial statements of the: (1) Department of Defense (DOD); (2) Department of the Army; (3) Department of the Navy; (4) Department of the Air Force; and (5) Defense Logistics Agency. Sets forth deadlines concerning the completion of such audits and the validation of such financial statements as ready for audit.

Requires validation of the financial statements of the Departments of the Army, Navy, and Air Force and the Defense Logistics Agency as ready for audit by specified deadlines with respect to: (1) military equipment; (2) real property; (3) inventory; (4) operational material and supplies; (5) environmental liabilities; and (6) the fund balance with the Treasury.

Provides for the submission of a report to specified congressional committees if DOD or a component of DOD is unable to achieve compliance with the completion date for a requirement under this Act.

Requires semiannual reports to such committees on the financial improvement audit readiness (FIAR) plan.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Department of Defense Financial 
Accountability Act of 2009''.

SEC. 2. AUDIT OF FINANCIAL STATEMENTS OF THE DEPARTMENT OF DEFENSE.

    (a) Financial Statements of Department of Defense.--
            (1) Validation as ready for audit.--The financial 
        statements of the Department of Defense for a fiscal year shall 
        be validated as ready for audit by not later than September 30, 
        2017.
            (2) Audit.--The financial statements of the Department of 
        Defense for a fiscal year shall be audited, and an opinion 
        shall be rendered pursuant to such audit, for the first fiscal 
        year for which the financial statements are ready for audit, 
        but not later than fiscal year 2017, and for each fiscal year 
        thereafter.
            (3) Deadline for audit.--The audit of the financial 
        statements of the Department of Defense shall be completed as 
        follows:
                    (A) In the event the financial statements for a 
                fiscal year before fiscal year 2017 are ready for 
                audit, by not later than two years after the last day 
                of such fiscal year.
                    (B) In the case of the financial statement fiscal 
                year 2017, by not later than September 30, 2019.
                    (C) In the case of the financial statement for any 
                fiscal year after fiscal year 2017, by not later than 
                one year after the last day of such fiscal year.
    (b) Financial Statements of the Military Departments and DLA.--In 
furtherance of compliance with the requirements in subsection (a), the 
following requirements shall apply:
            (1) Department of the army.--
                    (A) Validation as ready for audit.--The financial 
                statements of the Department of the Army for a fiscal 
                year shall be validated as ready for audit by not later 
                than March 31, 2017.
                    (B) Audit.--The financial statements of the 
                Department of the Army for a fiscal year shall be 
                audited, and an opinion shall be rendered pursuant to 
                such audit, for the first fiscal year for which the 
                financial statements are ready for audit, but not later 
                than fiscal year 2017, and for each fiscal year 
                thereafter.
                    (C) Deadline for audit.--The audit of the financial 
                statements of the Department of Army shall be completed 
                as follows:
                            (i) In the event the financial statements 
                        for a fiscal year before fiscal year 2017 are 
                        ready for audit, by not later than two years 
                        after the last day of such fiscal year.
                            (ii) In the case of the financial statement 
                        fiscal year 2017, by not later than September 
                        30, 2019.
                            (iii) In the case of the financial 
                        statement for any fiscal year after fiscal year 
                        2017, by not later than one year after the last 
                        day of such fiscal year.
            (2) Department of the navy.--
                    (A) Validation as ready for audit.--The financial 
                statements of the Department of the Navy for a fiscal 
                year shall be validated as ready for audit by not later 
                than March 31, 2016.
                    (B) Audit.--The financial statements of the 
                Department of the Navy for a fiscal year shall be 
                audited, and an opinion shall be rendered pursuant to 
                such audit, for the first fiscal year for which the 
                financial statements are ready for audit, but not later 
                than fiscal year 2016, and for each fiscal year 
                thereafter.
                    (C) Deadline for audit.--The audit of the financial 
                statements of the Department of Navy shall be completed 
                as follows:
                            (i) In the event the financial statements 
                        for a fiscal year before fiscal year 2016 are 
                        ready for audit, by not later than two years 
                        after the last day of such fiscal year.
                            (ii) In the case of the financial statement 
                        fiscal year 2016, by not later than September 
                        30, 2018.
                            (iii) In the case of the financial 
                        statement for any fiscal year after fiscal year 
                        2016, by not later than one year after the last 
                        day of such fiscal year.
            (3) Department of the air force.--
                    (A) Validation as ready for audit.--The financial 
                statements of the Department of the Air Force for a 
                fiscal year shall be validated as ready for audit by 
                not later than September 30, 2016.
                    (B) Audit.--The financial statements of the 
                Department of the Air Force for a fiscal year shall be 
                audited, and an opinion shall be rendered pursuant to 
                such audit, for the first fiscal year for which the 
                financial statements are ready for audit, but not later 
                than fiscal year 2016, and for each fiscal year 
                thereafter.
                    (C) Deadline for audit.--The audit of the financial 
                statements of the Department of the Air Force shall be 
                completed as follows:
                            (i) In the event the financial statements 
                        for a fiscal year before fiscal year 2016 are 
                        ready for audit, by not later than two years 
                        after the last day of such fiscal year.
                            (ii) In the case of the financial statement 
                        fiscal year 2016, by not later than September 
                        30, 2018.
                            (iii) In the case of the financial 
                        statement for any fiscal year after fiscal year 
                        2016, by not later than one year after the last 
                        day of such fiscal year.
            (4) Defense logistics agency.--
                    (A) Validation as ready for audit.--The financial 
                statements of the Defense Logistics Agency for a fiscal 
                year shall be validated as ready for audit by not later 
                than September 30, 2017.
                    (B) Audit.--The financial statements of the Defense 
                Logistics Agency for a fiscal year shall be audited, 
                and an opinion shall be rendered pursuant to such 
                audit, for the first fiscal year for which the 
                financial statements are ready for audit, but not later 
                than fiscal year 2017, and for each fiscal year 
                thereafter.
                    (C) Deadline for audit.--The audit of the financial 
                statements of the Defense Logistics Agency shall be 
                completed as follows:
                            (i) In the event the financial statements 
                        for a fiscal year before fiscal year 2017 are 
                        ready for audit, by not later than two years 
                        after the last day of such fiscal year.
                            (ii) In the case of the financial statement 
                        fiscal year 2017, by not later than September 
                        30, 2019.
                            (iii) In the case of the financial 
                        statement for any fiscal year after fiscal year 
                        2017, by not later than one year after the last 
                        day of such fiscal year.
    (c) Validation as Ready for Audit of Financial Statements Regarding 
Particular Matters.--In furtherance of compliance with the requirements 
in subsections (a) and (b), the following requirements shall apply:
            (1) Military equipment.--
                    (A) Department of the army.--The financial 
                statements of the Department of the Army with respect 
                to military equipment shall be validated as ready for 
                audit by not later than December 31, 2013.
                    (B) Department of the navy.--The financial 
                statements of the Department of the Navy with respect 
                to military equipment shall be validated as ready for 
                audit by not later than September 30, 2014.
                    (C) Department of the air force.--The financial 
                statements of the Department of the Air Force with 
                respect to military equipment shall be validated as 
                ready for audit by not later than March 31, 2016.
            (2) Real property.--
                    (A) Department of the army.--The financial 
                statements of the Department of the Army with respect 
                to real property shall be validated as ready for audit 
                by not later than December 31, 2013.
                    (B) Department of the navy.--The financial 
                statements of the Department of the Navy with respect 
                to real property shall be validated as ready for audit 
                by not later than March 31, 2014.
                    (C) Department of the air force.--The financial 
                statements of the Department of the Air Force with 
                respect to real property shall be validated as ready 
                for audit by not later than September 30, 2014.
                    (D) Defense logistics agency.--The financial 
                statements of the Defense Logistics Agency with respect 
                to real property shall be validated as ready for audit 
                by not later than March 31, 2015.
            (3) Inventory.--
                    (A) Department of the army.--The financial 
                statements of the Department of the Army with respect 
                to inventory shall be validated as ready for audit by 
                not later than March 31, 2017.
                    (B) Department of the navy.--The financial 
                statements of the Department of the Navy with respect 
                to inventory shall be validated as ready for audit by 
                not later than December 31, 2013.
                    (C) Department of the air force.--The financial 
                statements of the Department of the Air Force with 
                respect to inventory shall be validated as ready for 
                audit by not later than September 30, 2016.
                    (D) Defense logistics agency.--The financial 
                statements of the Defense Logistics Agency with respect 
                to inventory shall be validated as ready for audit by 
                not later than September 30, 2015.
            (4) Operating material and supplies.--
                    (A) Department of the army.--The financial 
                statements of the Department of the Army with respect 
                to operating material and supplies shall be validated 
                as ready for audit by not later than March 31, 2017.
                    (B) Department of the navy.--The financial 
                statements of the Department of the Navy with respect 
                to operating material and supplies shall be validated 
                as ready for audit by not later than March 31, 2016.
                    (C) Department of the air force.--The financial 
                statements of the Department of the Air Force with 
                respect to operating materials and supplies shall be 
                validated as ready for audit by not later than 
                September 30, 2016.
            (5) Environmental liabilities.--
                    (A) Department of the army.--The financial 
                statements of the Department of the Army with respect 
                to environmental liabilities shall be validated as 
                ready for audit by not later than December 31, 2013.
                    (B) Department of the navy.--The financial 
                statements of the Department of the Navy with respect 
                to environmental liabilities shall be validated as 
                ready for audit by not later than March 31, 2010.
                    (C) Department of the air force.--The financial 
                statements of the Department of the Air Force with 
                respect to environmental liabilities shall be validated 
                as ready for audit by not later than December 31, 2011.
                    (D) Defense logistics agency.--The financial 
                statements of the Defense Logistics Agency with respect 
                to environmental liabilities shall be validated as 
                ready for audit by not later than September 30, 2017.
            (6) Fund balance with the treasury.--
                    (A) Department of the army.--The financial 
                statements of the Department of the Army with respect 
                to the fund balance with the Treasury shall be 
                validated as ready for audit by not later than 
                September 30, 2010.
                    (B) Department of the navy.--The financial 
                statements of the Department of the Navy with respect 
                to the fund balance with the Treasury shall be 
                validated as ready for audit by not later than December 
                31, 2010.
                    (C) Department of the air force.--The financial 
                statements of the Department of the Air Force with 
                respect to the fund balance with the Treasury shall be 
                validated as ready for audit by not later than December 
                31, 2011.
                    (D) Defense logistics agency.--The financial 
                statements of the Defense Logistics Agency with respect 
                to the fund balance with the Treasury shall be 
                validated as ready for audit by not later than 
                September 30, 2011.
    (d) Performance of Audits and Validations.--Any audit or validation 
as ready for audit of a financial statement required under subsections 
(a) through (c) may be performed by an independent auditor qualified 
for the performance of such audit or validation, as the case may be.
    (e) Action if Compliance Not Achieved.--
            (1) In general.--In the event the Department of Defense or 
        a component of the Department of Defense is unable to achieve 
        compliance with a requirement in subsection (a), (b), or (c) by 
        the completion date for such requirement otherwise specified in 
        the applicable provision of such subsection, the Secretary of 
        Defense or the head of the component, as applicable, shall 
        submit to the appropriate committees of Congress, not later 
        than 30 days after the completion date otherwise so specified, 
        a report setting forth the following:
                    (A) A statement of the reasons why compliance with 
                the requirement was not achieved by the completion date 
                for the requirement.
                    (B) A description of the actions to be taken to 
                achieve compliance with the requirement.
                    (C) A proposed completion date for achievement of 
                compliance with the requirement.
            (2) Construction.--Nothing in this subsection shall be 
        construed to waive any deadline for the completion of a 
        requirement under subsections (a) through (c).
    (f) Semiannual Reports on Financial Improvement Audit Readiness 
Plan.--
            (1) In general.--Not later than May 15 and November 15 each 
        year, the Under Secretary of Defense (Comptroller) shall submit 
        to the appropriate committees of Congress a report on progress 
        under the financial improvement audit readiness (FIAR) plan 
        during two calendar year quarters ending March 31 and September 
        30, respectively, of such year.
            (2) Elements.--Each report under paragraph (1) shall 
        include, for the two calendar year quarters covered by such 
        report, the following with respect to the portion of such 
        report relating to priority segments:
                    (A) A detailed description of any deficiencies 
                identified during discovery.
                    (B) A description of the actions to be taken to 
                remedy any deficiency so identified.
                    (C) A deadline for the completion of any actions 
                set forth under subparagraph (B).
    (g) Definitions.--In this section:
            (1) Appropriate committees of congress.--The term 
        ``appropriate committees of Congress'' means--
                    (A) the Committee on Armed Services and the 
                Committee on Homeland Security and Governmental Affairs 
                of the Senate; and
                    (B) the Committee on Armed Services and the 
                Committee on Oversight and Government Reform of the 
                House of Representatives.
            (2) Validation.--The term ``validation'', with respect to 
        the auditability of financial statements, means a determination 
        following an examination engagement that the financial 
        statements comply with generally accepted accounting principles 
        and applicable laws and regulations and reflect reliable 
        internal controls.