Page:United States Statutes at Large Volume 124.djvu/4334

 124 STAT. 4308 PUBLIC LAW 111–383—JAN. 7, 2011 (1) REVIEW REQUIRED.—Not later than 120 days after the date of the enactment of this Act, the Under Secretary of Defense (Comptroller) shall review options for providing appro- priate incentives to the military departments, Defense Agencies, and defense field activities to ensure that financial statements are validated as ready for audit earlier than September 30, 2017. (2) OPTIONS REVIEWED.—The review performed pursuant to paragraph (1) shall consider changes in policy that reflect the increased confidence that can be placed in auditable finan- cial statements, and shall include, at a minimum, consideration of the following options: (A) Consistent with the need to fund urgent warfighter requirements and operational needs, priority in the release of appropriated funds. (B) Relief from the frequency of financial reporting in cases in which such reporting is not required by law. (C) Relief from departmental obligation and expendi- ture thresholds to the extent that such thresholds establish requirements more restrictive than those required by law. (D) Increases in thresholds for reprogramming of funds. (E) Personnel management incentives for the financial and business management workforce. (F) Such other measures as the Under Secretary con- siders appropriate. (3) REPORT.—The Under Secretary shall include a discus- sion of the review performed pursuant to paragraph (1) in the next semiannual report pursuant to section 1003(b) of the National Defense Authorization Act for Fiscal Year 2010 (Public Law 111–84; 123 Stat. 2439; 10 U.S.C. 2222 note) and for each option considered pursuant to paragraph (2) shall include— (A) an assessment of the extent to which the implementation of the option— (i) would be consistent with the efficient operation of the Department of Defense and the effective funding of essential Department of Defense programs and activities; and (ii) would contribute to the achievement of Depart- ment of Defense goals to prepare auditable financial statements; and (B) a recommendation on whether such option should be adopted, a schedule for implementing the option if adop- tion is recommended, or a reason for not recommending the option if adoption is not recommended. SEC. 882. REVIEW OF OBLIGATION AND EXPENDITURE THRESHOLDS. (a) PROCESS REVIEW.—Not later than one year after the date of the enactment of this Act, the Chief Management Officer of the Department of Defense, in coordination with the Chief Manage- ment Officer of each military department, the Director of the Office of Performance Assessment and Root Cause Analysis, the Under Secretary of Defense (Comptroller), and the Comptrollers of the military departments, shall complete a comprehensive review of the use and value of obligation and expenditure benchmarks and propose new benchmarks or processes for tracking financial performance, including, as appropriate— Deadline. 10 USC 2222 note. Deadlines.