**GAO-08-462T**                      Published: Feb 07, 2008. Publicly Released: Feb 07, 2008.                  

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## Highlights

The Department of Defense (DOD) has stewardship over an unprecedented amount of taxpayer money--with about $546 billion in discretionary budget authority provided thus far in fiscal year 2008, and total reported obligations of about $492 billion to support ongoing operations and activities related to the Global War on Terrorism from September 11, 2001, through September 2007. Meanwhile, DOD is solely responsible for 8 high-risk areas identified by GAO and shares responsibility for another 7 high-risk areas. GAO designated DOD's approach to business transformation as high risk in 2005. DOD's business systems modernization and financial management have appeared on the list since 1995. Deficiencies in these areas adversely affect DOD's ability, among other things, to assess resource requirements; control costs; ensure accountability; measure performance; prevent waste, fraud, and abuse; and address pressing management issues. Based on previously issued GAO reports and testimonies, this testimony focuses on the progress DOD has made and the challenges that remain with respect to overall business transformation, business systems modernization, and financial management capabilities improvements. GAO has made recommendations to improve DOD's business transformation efforts and DOD's institutional and program-specific management controls. DOD has largely agreed with these recommendations.

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## Topics

National Defense

AccountabilityDefense budgetsDefense capabilitiesDefense cost controlEnterprise architectureFinancial managementInternal controlsOrganizational changePerformance measuresPolicy evaluationProgram evaluationProgram managementReporting requirementsStrategic planningSystems conversionsSystems evaluationBusiness planningBusiness transformationProgram goals or objectives