Elements of sound finance

According to the new study "Transforming Department of Defense Financial Management: A Strategy for Change," the following are crucial to transforming DOD's approach:

Leadership: Make fixing financial systems a top priority.

Incentives: Address the existing disincentives within DOD for fixing financial management problems.

Accountability: Set a transformation framework with clear measurements, timeframes and assigned personal responsibilities and authorities.

Organizational alignment: The Defense secretary should give the DOD comptroller the assignment and authority to implement an integrated, departmentwide program for transformation.

Change certain rules: Work with Congress and the Bush administration to address regulations and laws that hinder changes.

Change enterprise practices: Modify the current emphasis on the "uniqueness" of DOD components and focus on standardization of core accounting requirements and increased use of commercial financial management systems.