Defense IG criticizes business modernization

The Defense Department Inspector General's office last week issued a report criticizing DOD's Business Enterprise Architecture and calling for the department to address the issues quickly.

DOD has spent $100 million with lead contractor IBM Corp. to develop the architecture, but it has not defined what a business management IT system is or established a systems inventory that is synchronized with the modernization effort, a deputy assistant IG found in the July 10 report.

Furthermore, DOD has not established procedures for enterprise architecture workers to develop and maintain a complete list of business systems, according to David K. Steensma, deputy IG for auditing.

DOD has broken its financial framework into seven business areas: logistics, acquisition, accounting and financial management, program and budget, personnel and readiness, technology infrastructure and real property, and environmental liabilities. DOD has appointed financial managers to oversee each of the business areas.

But, 'DOD does not have a single-source repository to collect its business information, reduce the burden of multiple and costly data calls, and inform its transforming initiatives,' according to the report.

Steensma requested John Stenbit, the Defense CIO, and Defense comptroller Dov S. Zakheim to comment on the IG's recommendations by Aug. 11.


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