What does SHORT TITLE. of S 3902 do?

This bill is formally titled the ``Reviewing Every Check and Each Invoice Purchasing Troops' Supplies Act'' or the ``RECEIPTS Act''.

What does FINDINGS. of S 3902 do?

This section outlines findings related to the Department of Defense's (DoD) financial management and audit readiness. It notes that the DoD has not consistently complied with requirements to publish financial statements and provide auditable financial information, as mandated by the Constitution, Title 31 of the U.S. Code, and the Federal Financial Management Improvement Act of 1996. The Government Accountability Office has placed the DoD's financial management on its 'High-Risk' list due to issues with cost control, accountability, and fraud prevention. In 2005, the DoD created a Financial Improvement and Audit Readiness (FIAR) Plan to improve financial information and achieve audit readiness. Subsequent National Defense Authorization Acts have required regular status reports on the FIAR Plan and set deadlines for audit-ready financial statements, which the DoD has not met. During a 2025 Senate hearing, the DoD's Acting Comptroller committed to achieving audit-ready budget statements by 2028.

What does ENHANCED REPROGRAMMING AUTHORITY FOLLOWING ACHIEVEMENT BY of S 3902 do?

This section modifies reprogramming authority within the Department of Defense (DoD) and its components. If the DoD obtains an unqualified audit opinion on its financial statements after fiscal year 2028, the Secretary of Defense's general transfer authority limit will be the greater of $10,000,000,000 or 1% of the DoD's total budget authority for the following fiscal year. Military departments, Defense Agencies, and Defense Field Activities also receive modified reprogramming thresholds if they obtain unqualified audit opinions after fiscal year 2028. For these entities, reprogramming thresholds without prior notice to Congress are set at $60,000,000 for procurement programs, $30,000,000 for research programs, $45,000,000 for operation and maintenance budget activities, and $30,000,000 for military personnel budget activities. This section clarifies that it does not alter other requirements for notice to Congress regarding transfers or reprogrammings. The terms 'program base amount,' 'procurement program,' 'research program,' and 'budget activity' are defined by reference to the Financial Management Regulation of the Department of Defense (DoD 7000.14R).

What does CESSATION OF APPLICABILITY OF REPORTING REQUIREMENTS REGARDING of S 3902 do?

This section outlines the cessation of specific reporting requirements related to the financial statements of the Department of Defense. The reporting requirements cease for a military department upon the issuance of an unqualified audit opinion on its financial statements. The reporting requirements cease for the Department of Defense when an unqualified audit opinion is issued on its financial statements, including those of its military departments and other reporting entities defined by the Office of Management and Budget. The reporting requirements that cease include those mandated by sections 892(b) of the Ike Skelton National Defense Authorization Act for Fiscal Year 2011, 1003(b) of the National Defense Authorization Act for Fiscal Year 2010, 817(d) of the Bob Stump National Defense Authorization Act for Fiscal Year 2003, and 908(b) of the Defense Acquisition Improvement Act of 1986, along with related duplicate requirements.

What does ADDITIONAL DUTIES AND QUALIFICATIONS FOR FAILURE TO OBTAIN of S 3902 do?

This section outlines additional qualifications and duties for certain Department of Defense (DoD) financial management positions if the DoD fails to obtain an unqualified opinion on its financial statements for fiscal year 2028 by December 31, 2028. Specifically, it mandates that nominees for Under Secretary of Defense (Comptroller), Assistant Secretary of the Army for Financial Management, Assistant Secretary of the Navy for Financial Management, and Assistant Secretary of the Air Force for Financial Management must be Certified Public Accountants (CPAs). To qualify, nominees must have experience as a chief financial officer or equivalent in either a Federal or State agency with an unqualified audit opinion or a public company with an unqualified audit opinion. The duties and powers of the Under Secretary of Defense (Comptroller) and the responsibilities of the Assistant Secretaries will be further defined by the Deputy Secretary of Defense (acting as Chief Management Officer) or a successor official. The term 'public company' is defined as having the meaning of 'issuer' as defined in the Sarbanes-Oxley Act of 2002.

What does REQUIRING THE SECRETARY OF DEFENSE TO TRANSFER NON-DEFENSE of S 3902 do?

This section mandates the transfer of certain DFAS functions if the Department of Defense (DoD) fails to receive an unqualified audit opinion on its fiscal year 2028 financial statements by December 31, 2028. The transfer would involve non-defense payroll and finance services currently performed by DFAS. These services include those provided to other federal agencies like the Department of Health and Human Services. Services for military retirees, the Department of Veterans Affairs, and the Executive Office of the President are excluded from this transfer requirement. The Secretary of Defense must coordinate the transfer with the Secretary of the Treasury and the Director of the Office of Management and Budget (OMB).

What does CHANGE IN MISSION STATEMENT FOR DFAS. of S 3902 do?

This section requires the Secretary to direct the Defense Finance and Accounting Service (DFAS) to amend its mission statement and vision. The revised mission statement and vision must incorporate the principle that DFAS is a critical part of the United States military's financial management and accounting team. DFAS is jointly responsible with the military services for accounting for military spending. This joint responsibility includes accurately recording, analyzing, summarizing, and classifying military service financial transactions. DFAS and military services share responsibility for ensuring financial transactions are recorded in the military services' financial statements. A goal is to achieve an unqualified audit opinion for the Department of Defense's financial statements.

What does AUTHORIZATION FOR ARTIFICIAL INTELLIGENCE, INCLUDING AGENTIC of S 3902 do?

This section authorizes the Department of Defense (DoD) to utilize artificial intelligence (AI) and automation for financial statement audits. Congress expresses the sense that the DoD should automate financial statement preparation and auditing to minimize contractor personnel use. The section authorizes a total of $300,000,000 in appropriations for the DoD: $150,000,000 for AI deployment and $150,000,000 for business systems replacements to improve financial statement accuracy. The Secretary of Defense is required to terminate existing contracts for consulting services related to financial statement audits, with termination amounts equal to the appropriated funds.

What does ESTABLISHMENT OF DEPARTMENT OF DEFENSE AUDIT COMMITTEE AND of S 3902 do?

This section establishes an Audit Committee within the Department of Defense to select and oversee the audit of the Department's financial statements. The Audit Committee will be chaired by the Deputy Secretary of Defense and include members from various roles within the Department of Defense, as well as individuals appointed by the Chair and Ranking Member of both the Senate and House Committees on Armed Services. Certain individuals, including the Under Secretary of Defense (Comptroller)/Chief Financial Officer, are excluded from serving on the Audit Committee. Individuals appointed by the Armed Services Committees must be Certified Public Accountants (CPAs) with experience auditing Federal agency financial statements. Section 3521(a) of title 31, United States Code, is amended to require that the audit of the Department of Defense be performed by an independent external auditor.

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A bill to provide for auditable financial statements for the Department of Defense, and for other purposes. — S. 3902

Q: What does Preamble of S 3902 do?

This bill aims to provide for auditable financial statements for the Department of Defense.

RECEIPTS Act

Last updated: 2/24/2026 · Introduced: 2/24/2026

Author: Joni Ernst (R-IA)

TL;DR (AI)

This bill aims to improve the Department of Defense's (DoD) financial management and achieve auditable financial statements.
If the DoD receives an unqualified audit opinion after 2028, the Secretary of Defense's reprogramming authority limit will increase, and military departments will have higher thresholds for transferring funds without prior congressional notice.
Upon receiving an unqualified audit opinion, specific reporting requirements related to the DoD's financial statements will cease.
If the DoD fails to achieve an unqualified audit opinion by 2028, nominees for key financial management positions must be Certified Public Accountants (CPAs) with relevant experience.
The bill mandates the transfer of certain non-defense payroll and finance services from DFAS to other federal agencies if the DoD does not receive an unqualified audit opinion by 2028.

119th Congressin committeeOfficial page

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Includes provisions on preamble, short title., and 8 more.

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