(D) the scope of work assigned to the fi-
nancial and business management workforce of 
the component. 
(b) INCLUSION OF INFORMATION IN REPORT.—The 
Under Secretary shall include information on any measure 
initiated pursuant to this section in the next semiannual 
report pursuant to section 1003(b) of the National De-
fense Authorization Act for Fiscal Year 2010 (Public Law 
111–84; 123 Stat. 2439; 10 U.S.C. 2222 note) after such 
measure is initiated. 
(c) EXPIRATION.—This section shall expire on Sep-
tember 30, 2017. 
(d) DEFINITION.—In this section, the term ‘‘compo-
nent of the Department of Defense’’ means any organiza-
tion within the Department of Defense that is required 
to submit an auditable financial statement to the Sec-
retary of Defense. 
SEC. 302. MEASURES REQUIRED AFTER FAILURE TO 
ACHIEVE AUDITABILITY. 
(a) IN GENERAL.—The Secretary of Defense shall 
ensure that corrective measures are immediately taken to 
address the failure of a component of the Department of 
Defense to achieve a financial statement validated as 
ready for audit by September 30, 2017.
(b) MEASURES REQUIRED.—Not later than 180 days 
after the date of the enactment of this Act, the Secretary 
shall develop and issue guidance detailing measures to be 
taken in accordance with subsection (a). Such measures 
shall include— 
(1) the development of a remediation plan to 
ensure the component can achieve a financial state-
ment validated as ready for audit within 1 year; 
(2) additional reporting requirements that may 
be necessary to mitigate financial risk to the compo-
nent; 
(3) delaying the release of appropriated funds 
to such component, consistent with the need to fund 
urgent warfighter requirements and operational 
needs, until such time as the Secretary is assured 
that the component will achieve a financial state-
ment validated as ready for audit within 1 year; 
(4) specific consequences for key personnel in 
order to ensure accountability within the leadership 
of the component; and 
(5) such other measures as the Secretary con-
siders appropriate. 
(c) DEFINITION.—The term ‘‘component’’ of the De-
partment of Defense means any organization within the
Department of Defense that is required to submit an 
auditable financial statement to the Secretary of Defense. 
SEC. 303. REVIEW OF OBLIGATION AND EXPENDITURE 
THRESHOLDS. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that— 
(1) Department of Defense program managers 
should be encouraged to place a higher priority on 
seeking the best value for the Government than on 
meeting arbitrary benchmarks for spending; and 
(2) actions to carry out paragraph (1) should 
be supported by the Department’s leadership at 
every level. 
(b) POLICY REVIEW.—Not later than 180 days after 
the date of the enactment of this Act, the Chief Manage-
ment Officer of the Department of Defense, in coordina-
tion with the Chief Management Officer of each military 
department, shall review and update as necessary all rel-
evant policy and instruction regarding obligation and ex-
penditure benchmarks to ensure that such guidance does 
not inadvertently prevent achieving the best value for the 
Government in the obligation and expenditure of funds. 
(c) PROCESS REVIEW.—Not later than 1 year after 
the date of the enactment of this Act, the Chief Manage-
ment Officer, in coordination with the Chief Management