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MEMORANDUM FOR ALL MAJCOM/FM/FMF
FROM: SAF/FMFC
SUBJECT: Financial Records Retention

23 May2016

The Department of Defense (DoD), Financial Management Regulation, Volume 1, Chapter 9 has been updated to reflect the new financial records retention requirement for DoD. The requirement mandates that all financial transactions and supporting documentation be maintain for 10 years.
Congress has mandated that the DoD have auditable financial statements in place by 30 Sep 2017. In an effort to achieve auditability, an Independent Public Auditor (IPA) is performing audits within the Air Force (AF). The IPA has identified several common problems specifically related to AF financial documentation such as:

1. Lack of or incomplete documentation to support internal controls for certification/approval of transactions (i.e. authorization of approval, DD577)
2. Lack of or incorrect evidence of receipt and acceptance
3. Lack of or incomplete evidence of contractual agreements and related contract documents (i.e. contract and/or funding documents)
4. Lack of or incomplete evidence offimding authority
5. Failure to submit key supporting documents (i.e. inability to locate and/or provide sufficient documentation in timely manner)

If no evidence of a financial event exists, the auditor cannot validate that the transaction was properly approved by the appropriate official or if the transaction was properly executed. It is imperative that AF have the ability to consistently provide documented evidence of financial events.

For transactions that are entered in Defense Enterprise Accounting and Management System (DEAMS) users should always attach appropriate transaction supp01iing documentation (excluding authorization of approval, DD577, DD2875, etc).

If you require assistance or have further questions regarding this topic, please contact your MAJCOM. MAJCOMs please contact MSgt Arkeisha Lawrence, DSN 612-5608, arkeisha.s.lawrence.mil@mail.mil.

//signed//
Eric I. Cuebas
Director, Air Force Accounting and
Finance Office

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1. Department of Defense (DoD) 7000.14-R, Financial Management Regulation, Volume 1, Chapter 9 (dated February 2016)