Under the authority, direction, and control of the Secretary of Defense, the USD(C) is the principal advisor and assistant to the Secretary and Deputy Secretary of Defense for budgetary and fiscal matters (including financial management, accounting policy and systems, budget formulation and execution, and contract audit administration and organization), DoD program analysis and evaluation, and general management improvement programs.  In addition, the USD(C) is the Chief Financial Officer of the Department of Defense. In the exercise of this responsibility, the USD(C) shall:

  l  Administer the planning, programming, and budgeting system of the DoD.

  l  Supervise and direct the formulation and presentation of Defense budgets, the interactions with the Congress on budgetary and fiscal matters, and the execution and control of approved budgets; and maintain effective control and accountability over the use of all financial resources of the DoD.

  l  Establish and supervise the execution of uniform DoD policies, principles, and procedures (including terminologies and classifications, as necessary) for:

        --  Budget formulation and execution; financial management programs and systems; accounting and disbursing systems; cash and credit management; debt collection; financial progress and statistical reporting; and technical, organizational, and administrative matters related to contract audit.

        --  Relationships with financial institutions, including those operating on DoD installations in the United States and overseas.

        --  International financial matters, including the adequacy of international financial agreements.

        --  Education, training, and career development of comptroller and financial management personnel.

        --  Prices for transactions involving the provision of goods and services by DoD Components, including sales to foreign governments.

        --  Access to DoD budgetary material and other records by the General Accounting Office (GAO).

  l  Provide for the design, development, and installation of management improvement programs and systems throughout the DoD by:

        -- Improving general management practices within the Department by analyzing current practices, identifying improvements that will result in management efficiencies, measuring cost savings, and implementing changes.

        -- Developing and overseeing implementation of total cost per output standards for the DoD to be used for budget, management, and productivity improvement purposes.

        -- Establishing and maintaining a management control program to control waste, fraud, and mismanagement.

  l  Advise and assist the Secretary and Deputy Secretary of Defense on administration and organization of the contract audit function within the DoD.

  l  Establish and supervise uniform DoD policies, principles, and procedures for administrative matters related to contract audit.

  l  Analyze resource requirements and use of personnel to accomplish the contract audit needs of the DoD.

  l  Coordinate and interface with other DoD Components having interest in the contract audit mission and related activities, including the Under Secretary of Defense for Acquisition, Technology and Logistics, the Inspector General of the DoD, the Military Departments, and the Defense Logistics Agency.

  l  Interact with the Congress on issues involving the contract audit function of the DoD, including interface with the GAO on pertinent audits.

  l  Conduct analyses, develop plans, provide advice, recommend changes, and issue guidance on DoD contract audit organization structure and management practices.

  l  Interact with the Defense industry on major areas of concern involving contract audit activity.

  l  Perform such other activities in the area of contract audit as the Secretary or Deputy Secretary of Defense may prescribe.

    The above functions are carried out with the support of the following key OSD personnel:

  l  Principal Deputy Under Secretary of Defense (Comptroller)

    In addition, the USD(C) exercises authority, direction, and control over the following:

  l  The Defense Contract Audit Agency (DoDD 5105.36)

  l  The Defense Finance and Accounting Service (DoDD 5118.5)

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