S.Amdt. 636

SA 636. Mr. PERDUE (for himself and Mr. Wyden) submitted an amendment
intended to be proposed by him to the bill H.R. 2810, to authorize
appropriations for fiscal year 2018 for military

[[Page S4571]]

activities of the Department of Defense, for military construction, and
for defense activities of the Department of Energy, to prescribe
military personnel strengths for such fiscal year, and for other
purposes; which was ordered to lie on the table; as follows:

Strike section 1003 and insert the following:

SEC. ___. CERTIFICATIONS ON RELIABILITY OF THE FINANCIAL
STATEMENTS OF THE DEPARTMENT OF DEFENSE AND THE
MILITARY DEPARTMENTS, DEFENSE AGENCIES, AND
OTHER ORGANIZATIONS AND ELEMENTS OF THE
DEPARTMENT OF DEFENSE.

(a) Department of Defense.--Not later than September 30,
2017, and each year thereafter, the Secretary of Defense
shall certify to the congressional defense committees whether
or not the full financial statements of the Department of
Defense are reliable as of the date of such certification.
(b) Military Departments, Defense Agencies, and Other
Organizations and Elements.--
(1) In general.--Not later than September 30, 2017, and
each year thereafter, each Secretary of a military
department, each head of a Defense Agency, and each head of
any other organization or element of the Department of
Defense designated by the Secretary of Defense for purposes
of this subsection shall certify to the congressional defense
committees whether or not the full financial statements of
the military department, the Defense Agency, or the
organization or element concerned became reliable during the
fiscal year in which such certification is to be submitted.
(2) Transmittal through secretary of defense.--The
individual certifications required by this subsection shall
be transmitted to the congressional defense committees
collectively by the Secretary under procedures established by
the Secretary for purposes of this subsection.
(c) Termination on Receipt of Unmodified Audit Opinion on
Full Financial Statements.--A certification is no longer
required under subsection (a) or (b) with respect to the
Department of Defense, or a military department, Defense
Agency, or organization or element of the Department, as
applicable, after the Department of Defense or such military
department, Defense Agency, or organization or element
receives an unmodified audit opinion on its full financial
statements.

SEC. ___. STREAMLINING OF REQUIREMENTS IN CONNECTION WITH
AUDITS AND THE RELIABILITY OF THE FINANCIAL
STATEMENTS OF THE DEPARTMENT OF DEFENSE.

(a) Repeal of Limitation on Inspector General Conduct of
Audit of Unreliable Financial Statements.--Section 1008 of
the National Defense Authorization Act for Fiscal Year 2002
(10 U.S.C. 113 note) is amended by striking subseciton (d).
(b) Cessation of Applicability of Financial Improvement and
Audit Readiness Plan Requirements.--Section 1003 of the
National Defense Authorization Act for Fiscal Year 2010 (10
U.S.C. 2222 note) is amended by adding at the end the
following new subsection:
``(d) Cessation of Applicability.--This section and the
requirements of this section shall cease to be effective on
the date on which the Secretary of Defense submits to the
congressional defense committees a report setting forth a
certification that the financial statements of each
department, agency, activity, and other component of the
Department of Defense are under audit.''.

SEC. ___. RANKINGS OF AUDITABILITY OF FINANCIAL STATEMENTS OF
THE ORGANIZATIONS AND ELEMENTS OF THE
DEPARTMENT OF DEFENSE.

Not later than 30 days after the date of the enactment of
this Act, and annually thereafter, the Secretary of Defense
shall, in coordination with the Under Secretary of Defense
(Comptroller), submit to the congressional defense committees
a report setting forth a ranking of the auditability of the
financial statements of the departments, agencies,
organizations, and elements of the Department of Defense
according to the progress made toward achieving auditability
as required by law. The Under Secretary shall determine the
criteria to be used for purposes of the rankings.
______