Army’s Modernized Accounting System Fails to Record and Protect Data, IG Says

Despite spending $1.8 billion on an accounting modernization system, the Army lacks the internal controls to properly approve, verify, and reconcile its procure-to-pay (P2P) transactions, a report by the Defense Department Inspector General (IG) found.

The Army also reportedly failed to provide oversight over its Logistics Modernization Program (LMP) access templates, making data vulnerable to unauthorized use. In addition, it did not record and document business events accurately. This occurred because Army officials who managed the system did not develop effective controls to find problems and implement solutions, the IG said.

The IG made several recommendations to address these issues, ...