(1) VALIDATION AS READY FOR AUDIT- The financial statements of the Department of Defense for a fiscal year shall be validated as ready for audit by not later than September 30, 2017.
(2) AUDIT- The financial statements of the Department of Defense for a fiscal year shall be audited, and an opinion shall be rendered pursuant to such audit, for the first fiscal year for which the financial statements are ready for audit, but not later than fiscal year 2017, and for each fiscal year thereafter.
(3) DEADLINE FOR AUDIT- The audit of the financial statements of the Department of Defense shall be completed as follows:
(A) In the event the financial statements for a fiscal year before fiscal year 2017 are ready for audit, by not later than two years after the last day of such fiscal year.
(B) In the case of the financial statement fiscal year 2017, by not later than September 30, 2019.
(C) In the case of the financial statement for any fiscal year after fiscal year 2017, by not later than one year after the last day of such fiscal year.
(b) Financial Statements of the Military Departments and DLA- In furtherance of compliance with the requirements in subsection (a), the following requirements shall apply:
(1) DEPARTMENT OF THE ARMY-
(A) VALIDATION AS READY FOR AUDIT- The financial statements of the Department of the Army for a fiscal year shall be validated as ready for audit by not later than March 31, 2017.
(B) AUDIT- The financial statements of the Department of the Army for a fiscal year shall be audited, and an opinion shall be rendered pursuant to such audit, for the first fiscal year for which the financial statements are ready for audit, but not later than fiscal year 2017, and for each fiscal year thereafter.
(C) DEADLINE FOR AUDIT- The audit of the financial statements of the Department of Army shall be completed as follows:
(i) In the event the financial statements for a fiscal year before fiscal year 2017 are ready for audit, by not later than two years after the last day of such fiscal year.
(ii) In the case of the financial statement fiscal year 2017, by not later than September 30, 2019.
(iii) In the case of the financial statement for any fiscal year after fiscal year 2017, by not later than one year after the last day of such fiscal year.
(2) DEPARTMENT OF THE NAVY-
(A) VALIDATION AS READY FOR AUDIT- The financial statements of the Department of the Navy for a fiscal year shall be validated as ready for audit by not later than March 31, 2016.
(B) AUDIT- The financial statements of the Department of the Navy for a fiscal year shall be audited, and an opinion shall be rendered pursuant to such audit, for the first fiscal year for which the financial statements are ready for audit, but not later than fiscal year 2016, and for each fiscal year thereafter.
(C) DEADLINE FOR AUDIT- The audit of the financial statements of the Department of Navy shall be completed as follows:
(i) In the event the financial statements for a fiscal year before fiscal year 2016 are ready for audit, by not later than two years after the last day of such fiscal year.
(ii) In the case of the financial statement fiscal year 2016, by not later than September 30, 2018.
(iii) In the case of the financial statement for any fiscal year after fiscal year 2016, by not later than one year after the last day of such fiscal year.
(3) DEPARTMENT OF THE AIR FORCE-
(A) VALIDATION AS READY FOR AUDIT- The financial statements of the Department of the Air Force for a fiscal year shall be validated as ready for audit by not later than September 30, 2016.
(B) AUDIT- The financial statements of the Department of the Air Force for a fiscal year shall be audited, and an opinion shall be rendered pursuant to such audit, for the first fiscal year for which the financial statements are ready for audit, but not later than fiscal year 2016, and for each fiscal year thereafter.
(C) DEADLINE FOR AUDIT- The audit of the financial statements of the Department of the Air Force shall be completed as follows:
(i) In the event the financial statements for a fiscal year before fiscal year 2016 are ready for audit, by not later than two years after the last day of such fiscal year.
(ii) In the case of the financial statement fiscal year 2016, by not later than September 30, 2018.
(iii) In the case of the financial statement for any fiscal year after fiscal year 2016, by not later than one year after the last day of such fiscal year.
(4) DEFENSE LOGISTICS AGENCY-
(A) VALIDATION AS READY FOR AUDIT- The financial statements of the Defense Logistics Agency for a fiscal year shall be validated as ready for audit by not later than September 30, 2017.
(B) AUDIT- The financial statements of the Defense Logistics Agency for a fiscal year shall be audited, and an opinion shall be rendered pursuant to such audit, for the first fiscal year for which the financial statements are ready for audit, but not later than fiscal year 2017, and for each fiscal year thereafter.
(C) DEADLINE FOR AUDIT- The audit of the financial statements of the Defense Logistics Agency shall be completed as follows:
(i) In the event the financial statements for a fiscal year before fiscal year 2017 are ready for audit, by not later than two years after the last day of such fiscal year.
(ii) In the case of the financial statement fiscal year 2017, by not later than September 30, 2019.
(iii) In the case of the financial statement for any fiscal year after fiscal year 2017, by not later than one year after the last day of such fiscal year.
(c) Validation as Ready for Audit of Financial Statements Regarding Particular Matters- In furtherance of compliance with the requirements in subsections (a) and (b), the following requirements shall apply:
(1) MILITARY EQUIPMENT-
(A) DEPARTMENT OF THE ARMY- The financial statements of the Department of the Army with respect to military equipment shall be validated as ready for audit by not later than December 31, 2013.
(B) DEPARTMENT OF THE NAVY- The financial statements of the Department of the Navy with respect to military equipment shall be validated as ready for audit by not later than September 30, 2014.
(C) DEPARTMENT OF THE AIR FORCE- The financial statements of the Department of the Air Force with respect to military equipment shall be validated as ready for audit by not later than March 31, 2016.
(2) REAL PROPERTY-
(A) DEPARTMENT OF THE ARMY- The financial statements of the Department of the Army with respect to real property shall be validated as ready for audit by not later than December 31, 2013.
(B) DEPARTMENT OF THE NAVY- The financial statements of the Department of the Navy with respect to real property shall be validated as ready for audit by not later than March 31, 2014.
(C) DEPARTMENT OF THE AIR FORCE- The financial statements of the Department of the Air Force with respect to real property shall be validated as ready for audit by not later than September 30, 2014.
(D) DEFENSE LOGISTICS AGENCY- The financial statements of the Defense Logistics Agency with respect to real property shall be validated as ready for audit by not later than March 31, 2015.
(3) INVENTORY-
(A) DEPARTMENT OF THE ARMY- The financial statements of the Department of the Army with respect to inventory shall be validated as ready for audit by not later than March 31, 2017.
(B) DEPARTMENT OF THE NAVY- The financial statements of the Department of the Navy with respect to inventory shall be validated as ready for audit by not later than December 31, 2013.
(C) DEPARTMENT OF THE AIR FORCE- The financial statements of the Department of the Air Force with respect to inventory shall be validated as ready for audit by not later than September 30, 2016.
(D) DEFENSE LOGISTICS AGENCY- The financial statements of the Defense Logistics Agency with respect to inventory shall be validated as ready for audit by not later than September 30, 2015.
(4) OPERATING MATERIAL AND SUPPLIES-
(A) DEPARTMENT OF THE ARMY- The financial statements of the Department of the Army with respect to operating material and supplies shall be validated as ready for audit by not later than March 31, 2017.
(B) DEPARTMENT OF THE NAVY- The financial statements of the Department of the Navy with respect to operating material and supplies shall be validated as ready for audit by not later than March 31, 2016.
(C) DEPARTMENT OF THE AIR FORCE- The financial statements of the Department of the Air Force with respect to operating materials and supplies shall be validated as ready for audit by not later than September 30, 2016.
(5) ENVIRONMENTAL LIABILITIES-
(A) DEPARTMENT OF THE ARMY- The financial statements of the Department of the Army with respect to environmental liabilities shall be validated as ready for audit by not later than December 31, 2013.
(B) DEPARTMENT OF THE NAVY- The financial statements of the Department of the Navy with respect to environmental liabilities shall be validated as ready for audit by not later than March 31, 2010.
(C) DEPARTMENT OF THE AIR FORCE- The financial statements of the Department of the Air Force with respect to environmental liabilities shall be validated as ready for audit by not later than December 31, 2011.
(D) DEFENSE LOGISTICS AGENCY- The financial statements of the Defense Logistics Agency with respect to environmental liabilities shall be validated as ready for audit by not later than September 30, 2017.
(6) FUND BALANCE WITH THE TREASURY-
(A) DEPARTMENT OF THE ARMY- The financial statements of the Department of the Army with respect to the fund balance with the Treasury shall be validated as ready for audit by not later than September 30, 2010.
(B) DEPARTMENT OF THE NAVY- The financial statements of the Department of the Navy with respect to the fund balance with the Treasury shall be validated as ready for audit by not later than December 31, 2010.
(C) DEPARTMENT OF THE AIR FORCE- The financial statements of the Department of the Air Force with respect to the fund balance with the Treasury shall be validated as ready for audit by not later than December 31, 2011.
(D) DEFENSE LOGISTICS AGENCY- The financial statements of the Defense Logistics Agency with respect to the fund balance with the Treasury shall be validated as ready for audit by not later than September 30, 2011.
(d) Performance of Audits and Validations- Any audit or validation as ready for audit of a financial statement required under subsections (a) through (c) may be performed by an independent auditor qualified for the performance of such audit or validation, as the case may be.
(1) IN GENERAL- In the event the Department of Defense or a component of the Department of Defense is unable to achieve compliance with a requirement in subsection (a), (b), or (c) by the completion date for such requirement otherwise specified in the applicable provision of such subsection, the Secretary of Defense or the head of the component, as applicable, shall submit to the appropriate committees of Congress, not later than 30 days after the completion date otherwise so specified, a report setting forth the following:
(A) A statement of the reasons why compliance with the requirement was not achieved by the completion date for the requirement.
(B) A description of the actions to be taken to achieve compliance with the requirement.
(C) A proposed completion date for achievement of compliance with the requirement.
(2) CONSTRUCTION- Nothing in this subsection shall be construed to waive any deadline for the completion of a requirement under subsections (a) through (c).
(1) IN GENERAL- Not later than May 15 and November 15 each year, the Under Secretary of Defense (Comptroller) shall submit to the appropriate committees of Congress a report on progress under the financial improvement audit readiness (FIAR) plan during two calendar year quarters ending March 31 and September 30, respectively, of such year.
(2) ELEMENTS- Each report under paragraph (1) shall include, for the two calendar year quarters covered by such report, the following with respect to the portion of such report relating to priority segments:
(A) A detailed description of any deficiencies identified during discovery.
(B) A description of the actions to be taken to remedy any deficiency so identified.
(C) A deadline for the completion of any actions set forth under subparagraph (B).