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DOD Financial Management: Navy Needs to Fully Address Strategic Planning and Systems Migration Leading Practices , April , 2026

April 2026

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From the report: “In response to its December 2020 acknowledgment that it had wasted billions of dollars sustaining redundant and obsolete IT systems, the Department of the Navy initiated an effort to modernize, consolidate, and retire its systems. The Navy reports that this initiative has resulted in terminating at least 11 legacy systems and saved more than $100 million. In addition, the Navy announced in January 2026 that it had completed its effort to migrate remaining Navy commands to Navy Enterprise Resource Planning, its financial system of record.

Fully adhering to leading practices for strategic and migration planning could strengthen the Navy’s systems modernization. Regarding strategic planning, the Navy met two of three leading practices and partially met one. For example, the Navy demonstrated that the portion of its Navy Financial Management Strategy associated with financial management systems aligned with relevant Navy and DOD-level strategic plans. However, the Navy did not fully implement performance measurement approaches for seven of the nine fiscal year 2025 metrics that it identified for this portion of its financial management strategy.”

Authors - Government Accountability Office (GAO)

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Government Accountability Office (GAO)

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