DoD Financial Audits Using AI Act

Summary

Directs the Secretary of Defense to ensure the fiscal year 2024 audit of the Department of Defense's financial statements uses AI technology.

Requires the Under Secretary of Defense (Comptroller) and the Inspector General to jointly develop the necessary AI technology for facilitating these audits.

Mandates the use of this AI technology to accelerate the retirement of older financial management systems without compromising essential controls or auditing standards.

Orders the rescission and deposit of any identified surplus funds from the audit into the General Fund of the Treasury for deficit reduction.

Obliges the Secretary of Defense to brief the Senate and House Committees on Armed Services within 180 days on the audit's progress and the AI technology development.

Directs the Secretary of Defense to use AI technology for the 2024 Department of Defense audit.

H. R. 7603

To direct the Secretary of Defense to ensure that the audit of the financial statements of the Department of Defense for fiscal year 2024 is conducted using technology that uses artificial intelligence, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES March 8, 2024 Mr. Schweikert introduced the following bill; which was referred to the Committee on Armed Services, and in addition to the Committee on Appropriations, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL To direct the Secretary of Defense to ensure that the audit of the financial statements of the Department of Defense for fiscal year 2024 is conducted using technology that uses artificial intelligence, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

Requires developing AI technology to facilitate audits of Department of Defense financial statements for fiscal year 2024.

SECTION 1. USE OF TECHNOLOGY USING ARTIFICIAL INTELLIGENCE TO FACILITATE AUDIT OF THE FINANCIAL STATEMENTS OF THE DEPARTMENT OF DEFENSE FOR FISCAL YEAR 2024.

(a) Development Of AI Technology For Audits.—The Under Secretary of Defense (Comptroller) and the Inspector General of the Department of Defense shall jointly develop technology that uses artificial intelligence for the purpose of facilitating audits of the financial statements of the Department.

Ensures the audit uses new technology and accelerates retirement of older financial systems without compromising standards.

(b) Use Of Technology.—The Secretary of Defense shall ensure that—

(1) the audit of the financial statements of the Department of Defense for fiscal year 2024, as required under section 240a of title 10, United States Code, is performed using the technology developed under subsection (a); and

(2) the technology developed under subsection (a) is used to accelerate the retirement of older financial management systems used by the Department without compromising essential controls or generally accepted Government auditing standards.

Rescinds surplus funds and deposits them in the Treasury for deficit reduction.

(c) Treatment Of Surplus Funds.—Any amounts identified in such audit as being surplus to the needs of the Department of Defense by reason of future valuation and accounting errors shall be rescinded and deposited in the General Fund of the Treasury to be used for deficit reduction.

Requires the Secretary to brief Congress on audit progress and developed technology within 180 days.

(d) Briefing.—Not later than 180 days after the date of the enactment of this Act, the Secretary shall provide to the Committees on Armed Services of the Senate and House of Representatives a briefing on—

(1) the progress of the audit of the financial statements of the Department of Defense for fiscal year 2024; and

(2) the technology developed pursuant to subsection (a).