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IIA Supports U.S. House Committee In Recommendation to Restore Navy Internal Audit Funding

Lake Mary, Fla. (Aug. 6, 2021)

LAKE MARY, Fla. (Aug. 6, 2021) – The Institute of Internal Auditors, the internal audit profession’s globally recognized advocate, educator, and provider of standards, guidance, and certifications, today applauded the U.S. House Armed Services Committee on its recommendation to reverse a proposal that would severely cut the U.S. Navy Audit Service’s budget and slash its workforce from nearly 300 to 85 worldwide.

“The courageous individuals who serve on the front lines of our national defense also serve on the front lines of some of the most pressing risks facing our government institutions,” IIA President and CEO Anthony J. Pugliese, CPA, CGMA, CITP, wrote to committee Vice Chair Rep. Elaine Luria. “They, and our country, deserve the support provided by strong oversight and governance.” Similar letters also were sent to other committee members, including Rep. Stephen Lynch, Chairman, subcommittee on National Security; Rep. Sara Jacobs; and Rep. Scott Peters.

Earlier this year, The IIA expressed “deep concern” to the Biden Administration over plans initiated by the previous administration to reduce the Navy Audit Service’s budget by 70 percent. Such severe action would leave merely one internal auditor per naval base and essentially end any effective assurance over the massive agency, whose budget was nearly $206 billion in 2020. The timing was important, according to The IIA’s Feb. 28, 2021 letter to U.S. Secretary of Defense Lloyd J. Austin III, in that the move would “disproportionately divest crucial audit resources” just as the “risks facing the Navy and our nation are increasing.”

In this week’s letter to Rep. Luria, Pugliese thanked House members for their work “in protecting our nation and preserving the integrity of our military.” The proposed reduction in audit oversight capabilities “would have set a dangerous precedent, exposing the Navy to unknown but very real risks.”

The recommendation will be presented to the full House Armed Services Committee for vote in September as part of the FY 22 National Defense Authorization Act.

Pugliese’s full letter to Rep. Luria is available on The IIA’s website.