Enterprise Resource Planning Systems Schedule Delays and Reengineering Weaknesses Increase Risks to DoD's Auditability Goals.

摘要

We conducted this audit in response to a congressional request. Our overall objective was to evaluate six Enterprise Resource Planning (ERP) systems that we identified as necessary for DoD to produce auditable financial statements. The six ERP systems experienced cost increases of $8.0 billion and schedule delays ranging from 1.5 to 12.5 years during system development and implementation. As a result of the schedule delays, DoD will continue using outdated legacy systems and diminish the estimated savings associated with transforming business operations through business system modernization. In addition, the impact of schedule delays increases the risk that DoD will not achieve an auditable Statement of Budgetary Resources by FY 2014 or accomplish its goal of full financial statement audit readiness by FY 2017. The DoD Deputy Chief Management Officer (DCMO) and the Chief Management Officers (CMO) of the Military Departments (DoD officials) did not verify that business processes were streamlined and efficient as required by Public Law 111-84, 'National Defense Authorization Act For Fiscal Year 2010,' Section 1072, 'Business Process Reengineering,' October 28, 2009. This occurred because DoD officials relied on the Program Management Offices' self compliance assertions when they certified and approved funding of $302.7 million, instead of reviewing the business processes and verifying the accuracy, completeness, and reliability of the Program Management Office submissions. As a result, there is an increased risk the ERP systems will incur additional delays and cost increases to ensure the systems are as streamlined and efficient as possible. We recommend that the DoD DCMO and CMOs of the Army, Navy, and Air Force develop procedures to review business processes and limit funding to programs that are not demonstrating adequate business process reengineering.