The FIAR Directorate, a program management office, is responsible for managing the FIAR Plan and ensuring that DoD-wide financial improvement efforts continue to mature and are integrated with transformation activities across the Department. Among its responsibilities, the FIAR Directorate develops and issues detailed financial improvement and audit preparation methodologies and guidance, also known as the FIAR Guidance.
The FIAR Guidance provides instructions for implementing a consistent, Department-wide plan for achieving the Department's financial improvement and audit readiness objectives. In accordance with the National Defense Authorization Act of Fiscal Year 2010, Section 1003, the FIAR Directorate developed this guidance for reporting entities and service providers working toward the goal of audit readiness. It defines the department's goals, priorities, strategy, and methodology for becoming audit ready. Furthermore, this guidance details the roles and responsibilities of reporting entities and service providers, and prescribes the specific procedures they should follow to achieve audit readiness.
A clear, comprehensive strategy for achieving audit readiness is critical to ensuring that limited resources are assigned effectively to facilitate sustained and measurable progress. The FIAR strategy provides a critical path for the Department because it balances the need to demonstrate short term accomplishments (Wave 1) against the long-term goal of achieving an unqualified opinion on the Department's financial statements (Wave 4). The first three waves should be performed concurrently because they focus on both of the USD(C)'s priorities, budgetary information and mission critical asset information.
For a detailed description of the specific steps each reporting entity must take to address the requirements of each wave (i.e., identify key risks of material misstatement, financial reporting objectives and key supporting documentation), please click on each wave in graphic below.
The FIAR Methodology (Methodology) provides a step-by-step approach to achieving improved financial information and audit readiness. Reporting entities should focus their audit readiness efforts on improving their processes, controls, and related documentation based on the results of the application of the Methodology.
The Methodology contains phases and key tasks for achieving improved financial information and audit readiness. The phases and key tasks, which can be applied uniformly regardless of the size, materiality or scope of an assessable unit, are as follows:
About FIAR Guidance
FIAR Guidance, November 2013
Tools, Templates, and Workproducts
FM Online (CAC Restricted)
Services Audit Readiness Websites