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Army Audit


The United States Army is the most lethal and capable ground combat force in history, defending the Nation and serving the American people for over 243 years. Today, our Army stands ready to deter, and if necessary, defeat any adversary that threatens our Nation’s security or vital national interests. We are thankful to Congress for providing us the resources required to build this current state of readiness.

The Army’s 2018 Annual Financial Report (AFR) reflects the outcome of the Army’s inaugural comprehensive audit. For the first time in Army history, a full audit by an independent public accountant was conducted, which reflects our enduring commitment to fiscal responsibility and accountability.

Over the past seventeen years, the Army provided the majority of forces fighting in Iraq and Afghanistan. Over that time, strategic competitors modernized their armies in an attempt to reduce the overmatch of the U.S. military. Rapid rates of technological change and the proliferation of advanced technologies have added further complexity to the security environment. In response to these changing conditions, the 2018 National Defense Strategy (NDS) issued a mandate to build a more lethal force.

In support of the NDS, the Army published the Army Vision in June of 2018, which articulates the future end state needed to ensure our overmatch against all potential adversaries. As described in the Army Vision: “The Army of 2028 will be ready to deploy, fight and win decisively against any adversary, anytime and anywhere, in a joint, multi-domain, high-intensity conflict, while simultaneously deterring others and maintaining our ability to conduct irregular warfare.” In pursuit of this Vision, Army resources are focused around three priorities: Readiness, Modernization, and Reform.

Readiness ensures the Army’s ability to deploy, fight, and win our Nation’s wars. The Army made great gains in readiness this year, increasing the number of fully-ready Brigade Combat Teams by over 30 percent. We also improved equipment readiness across the Army, increased munitions supplies, and expanded our pre-positioned stocks.

In addition to building readiness, we are taking needed measures to modernize the Army. The establishment of Army Futures Command (AFC) allows us to unify our entire modernization enterprise under one command. AFC will allow us to better partner with academia and the private sector in order to find innovative solutions to fulfill our six modernization priorities.

To enable continued advancements in readiness and modernization, the Army is implementing a series of reforms. Army reform efforts will free up time, money, and manpower to ensure they are going into the highest priority activities that produce the greatest benefit to the force. We will continue to reallocate resources towards our priorities to ensure that our budget remains aligned with the NDS and the Army Vision.

As has been the case throughout history, the U.S. Army stands prepared to answer the Nation’s call. All throughout the Total Army – Regular Army, National Guard, and Reserve – our Soldiers and civilian professionals remain committed to stewarding the efficient use of our resources. With sustained, adequate, and timely budgetary support from Congress, we will continue to maintain the ready and lethal Army that America needs.

           Fiscal Year 2019 United States Army Annual Financial Report