To help improve financial transparency and spending decisions, KPMG is helping a U.S. government defense agency overhaul its finance systems.
This government agency has protected millions of Americans for over 200 years. To continue its critical role in national security, it needed to meet the requirements of a new government mandate, becoming auditable and accountable.
Rather than work toward a quick fix for audit, however, the agency embarked on a financial and organizational transformation—one that could prove sustainable and accountable over time and cover four areas: people, processes, data and systems.
Its existing financial systems were not only outdated and inaccurate, they were disparate, spanning 98 different data systems. These inefficiencies made it difficult to make the best strategic decisions. To meet its new responsibilities and enact organizational change, the government agency would have to evolve—it would have to operate like a business.
The agency should be able to improve financial transparency and spending decisions, and transition from a reactive “business” to a proactive one. On a path to robust, sustainable development it can:
Making a sea change in financial processes
Dating back to the birth of the United States, this government agency has relied on its strength and intelligence to protect millions of Americans. But like many government organizations, it found that with the rise of technology there were other ways it needed to safeguard the nation. To do so, it needed to transform the way its legacy finance systems functioned to gain greater insight into its spending patterns and make more strategic decisions.
KPMG is working side by side with the agency, pulling data from its 98 systems to drive more comprehensive reporting and encourage better business decisions based on new overviews. By considering decisions from a wide angle, the agency will be able to identify previously unknown challenges involving audit requirements and compliance, and improve operations around internal controls and data flow and extraction.
At the time this story was written, the project was growing and evolving to cover everything from quality reviews to assessment work and accounting support. With every step, a closer and more meaningful relationship emerges. With the launch of the project’s second phase, change is arriving in the front office of the organization where the strategy promises to touch the agency’s work several years ahead of the audit ready deadline.
With a trusted advisor in KPMG, working shoulder to shoulder with our clients, the agency can continuously monitor and develop its systems for a proactive approach to ongoing regulatory and technological change.
This government agency was ready to take on the task of becoming audit ready, but the project evolved into so much more. By looking at issues in all areas, auditability becomes a byproduct of a transparent, successful business.
By working with a team that is well-versed in the nuances of both audit and government, this agency can better identify how to get current and stay current with changing regulations in order to proactively plan for the future.
KPMG complies with the auditor independence rules of the AICPA, SEC, PCAOB and DOL. As a result, some services described herein may not be available to our audit clients. KPMG audit clients should check with their respective lead audit partner for more information.