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GAO-04-731R 1 (2004-05-17)

handle is hein.gao/gaocrptaqgq0001 and id is 1 raw text is: SGAO Accountability * Integrity * Reliability United States General Accounting Office Washington, DC 20548 May 17, 2004 Congressional Defense Committees Subject: DOD Business Systems Modernization: Limited Progress in Development of Business Enterprise Architecture and Oversight of Information Technology Investments The Department of Defense's (DOD) long-standing business systems problems adversely affect the economy, effectiveness, and efficiency of its business operations and have resulted in a lack of adequate transparency and appropriate accountability across all of its major business areas. To help the department transform its operations, we recommended' in 2001 that DOD develop an enterprise architecture to guide and constrain its almost $20 billion annual investment in business systems and that it establish the investment controls needed to implement this architecture. In July 2001, DOD initiated a program to, among other things, develop a DOD business enterprise architecture (architecture). This effort is an essential part of the Secretary of Defense's broad initiative to transform the way the department works and what it works on. Because DOD is one of the largest and most complex organizations in the world, overhauling its business operations and supporting systems represents a huge management challenge. In fiscal year 2003, DOD reported that its operations involved over $1 trillion in assets, nearly $1.6 trillion in liabilities, approximately 3.3 million military and civilian personnel, and disbursements of over $416 billion. To support its business operations, DOD reported that it relies on about 2,300 business systems, including accounting, acquisition, logistics, and personnel systems. The department requested about $19 billion-about $4.8 billion for business systems 'U.S. General Accounting Office, Information Technology: Architecture Needed to Guide Modernization of DOD's Financial Operations, GAO-01-525 (Washington, D.C.: May 17, 2001). 2The Business Management Modernization Program is the department's business transformation initiative; it encompasses defense policies, processes, people, and systems that guide, perform, or support all aspects of business management-including development and implementation of the business enterprise architecture. The Under Secretary of Defense (Comptroller) established a DOD- wide program management office called Business Modernization and Systems Integration (BMSI), to oversee and manage the program. 3Business 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. GAO-04-73 1R DOD Business Systems Modernization

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