Finance

Defence finance and accounting service

Defence finance and accounting service

Defence finance and accounting service is an agency in United States known as DFAS under the DOD Department of Defence which was established under the control, direction and authority in 1991 of the Under Secretary of Defence /chief financial officer which was to get the financial management cost reduced and strengthen and also strengthen the operations within the DOD. It has its headquarter in Indianapolis, IN.

READ: Financial management

The defence finance and accounting service has the responsibility of making payments to its employees and vendors, contractors, service makers. One of the purpose of defence finance and accounting service is to provide finance intelligence, accounting information and business strategy to the decision makers of Department of Defence. The financial statements, standardizations, processes and operation, modernization and consolidation of department of defence are all prepared by the defence finance and accounting service.

The agency defence finance and accounting service was founded in 1991 and this was prior to the three military departments and major agencies of the government developing and implementing the financial management, accounting and budgeting. These three departments are the air force department, departments of army and the department of navy.

Defence finance and accounting service

It was these operations among them that lead to the incapability of the specialised system to communicate well with each other. Within the federal government, independent accounting and financing systems which were up to 878 were being maintained in 1990 and this was what lead to the creation of defence finance and accounting service by Dick Cheney which was the secretary of defence as at then and this was to get the financial management cost reduced and strengthen and also strengthen the operations within the DOD and to provide finance intelligence, accounting information and business strategy to the decision makers of Department of Defence. provide finance intelligence, accounting information and business strategy to the decision makers of Department of Defence has its consolidation began in 1992 and this consolidation is into 26 defence finance and accounting service centres of 300 fields which got the workforce reduced from twenty-seven thousand workers to thirteen thousand workers.

READ: Ministry of finance

In 1994, defence finance and accounting service started paying all civilian employees of Department of Defence. Defence finance and accounting service was established as the number four estate human resources regional service centre in 1995.

In 1998, the military which got consolidated pay the operations and direct it towards one system and in year 2000, the first financial statement audit which its opinion was unmodified was suggested. Defence finance and accounting service received this unmodified opinion on audit was received in 2002 for the Defence Contract Audit Agency and the Defence Commissary Agency. Defence finance and accounting service in 2003 was selected to be part of the three governmental entities making them to be four in provision of payroll and salary services to the United States government.

Defence finance and accounting service portal was named among top ten government best internets in the world by the Nielsen Norman Group. In 2005, the defence finance and accounting service was realigns into ten sites by the Base Realignment and Closure. This causes many sites to be integrated into many major centres.

More than three hundred installation levels have been consolidated into nine Defence finance and accounting service sites and the number of system in use then was reduced to 111 from 330 and this happened after Defence finance and accounting service ‘s inception and the wounded in action programme was initiated in 2006 for the provision of real time financial assistance to service members who get wounded.

The debit card programme was implemented in 2007 and it was supported by the family of the wounded warrior which helps in funds provision to these families of the wounded warriors. Audit Readiness Directorate was created in 2010 and defence finance and accounting service achieved the unmodified audit opinion for the 17th time   and this was for the financial statements of the WCF.

READ: Capital one auto financing

There are some related agencies like Defence finance and accounting service under the Department of Defence which parents it, these related agencies are the Defence finance and accounting service out of service debt management centre and Defence finance and accounting service garnishment operation centres. These agencies are also the he Defence finance and accounting service subordinate agencies.

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Harish Yadav

Finance and market analyst and chief writer on howtofinance. Passionate to read books and articles on marketing and accounting. Also edits other articles and publish them here.

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