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GAO-03-877R 1 (2003-07-07)

handle is hein.gao/gaobaamgf0001 and id is 1 raw text is: 

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        Accountability * Integrity * Reliability
United States General Accounting Office
Washington, DC 20548


          July 7, 2003

          Congressional Committees

          Subject: Business Systems Modernization: Summary of GAO's Assessment of the
          Department of Defense's Initial Business Enterprise Architecture (GAO-03 -877R)

          The Department of Defense (DOD) faces financial and related management problems that are
          pervasive, complex, long-standing, and deeply rooted in virtually all business operations
          throughout the department. These problems have impeded the department's ability to
          provide complete, reliable, and timely business information to the Congress, DOD managers,
          and other decision makers. Of the 25 areas on our governmentwide high-risk list, 6 are
          DOD program areas, and the department shares responsibility for 3 other high-risk areas that
          are governmentwide in scope.1 DOD's problems in each of these areas hinder the efficiency
          of operations, and leave the department vulnerable to fraud, waste, and abuse.

          For fiscal year 2003, DOD's information technology (IT) budget request was over $26
          billion. More specifically, to support its business operations, DOD reports that it currently
          relies on about 2,300 systems, including accounting, acquisition, logistics, and personnel
          systems that will cost about $18 billion-nearly $5.2 billion for business systems2 and $12.8
          billion primarily for business systems infrastructure-in fiscal year 2003 to operate,
          maintain, and modernize. As we have previously reported,3 this environment was not
          designed to be, but rather has evolved into, an overly complex and error-prone environment,
          including (1) little standardization across DOD, (2) multiple systems performing the same
          tasks, (3) the same data stored in multiple systems, and (4) manual data entry into multiple
          systems.

          One of the seven key elements we have reported4 as necessary to successfully reform DOD's
          financial and related management challenges is establishing and implementing an enterprise

          1U.S. General Accounting Office, High-Risk Series: An Update, GAO=03-119 (Washington, D.C.: January
          2003). The nine interrelated high-risk areas that represent the greatest challenge to DOD's development of
          world-class business operations to support its forces are contract management, financial management, support
          infrastructure management, inventory management, systems modernization, weapon system acquisition, human
          capital, information security, and real property. The last three areas are governmentwide in scope.
          2Business systems include financial and nonfinancial systems, such as civilian personnel, finance, health,
          logistics, military personnel, procurement, and transportation, with the common element being the generation or
          use of financial data to support DOD's business operations.
          3U. S. General Accounting Office, DOD Financial Management: Important Steps Underway But Reform Will
          Require a Long-term Commitment, GAO-02-784T (Washington, D.C.: June 4, 2002).

          4GAO02-784T.


GAO-03-877R DOD Business Enterprise Architecture

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