Incident: Financial Data Errors in US Army's Accounting System: Impact and Response

Published Date: 2016-08-23

Postmortem Analysis
Timeline 1. The software failure incident happened in the third quarter of 2015 and continued throughout the year 2015 as per the audit report mentioned in Article 46656. Therefore, the estimated timeline for the software failure incident would be: - Month and Year: Third quarter of 2015 to the end of 2015
System The software failure incident reported in Article 46656 highlighted financial errors within the US Army's accounting systems. The specific systems that failed in this incident were: 1. Defense Finance and Accounting Service (DFAS) computer system - More than 16,000 files vanished from the DFAS computer system due to a flaw in the computing software [46656].
Responsible Organization 1. Defense Department accounting employees failing to prioritize fixing the glitches in the systems that partly caused the mistakes [46656].
Impacted Organization 1. The US Army [46656]
Software Causes 1. Failure to prioritize fixing glitches in the systems that caused mistakes by Defense Department accounting employees [46656] 2. Flaw in the computing software leading to the disappearance of more than 16,000 files from the computer system of the Defense Finance and Accounting Service (DFAS) [46656]
Non-software Causes 1. Failure to prioritize fixing glitches in the systems that caused mistakes [46656] 2. More than 16,000 files vanished from the computer system of the Defense Finance and Accounting Service (DFAS) due to a flaw in the computing software [46656]
Impacts 1. The financial errors in the Army's accounting software led to adjustments totaling $6.5 trillion for the year, causing the Army's finances to be "materially misstated" [46656]. 2. The unreliable data in the accounting systems hindered financial managers from making accurate management and resource decisions [46656]. 3. More than 16,000 files vanished from the computer system of the Defense Finance and Accounting Service (DFAS) due to a flaw in the computing software, contributing to the errors in the financial statements [46656].
Preventions 1. Implementing robust data validation processes to ensure the accuracy and reliability of financial data entered into the accounting systems [46656]. 2. Conducting regular audits and reviews of the accounting systems to identify and rectify any glitches or faults that could lead to errors in financial statements [46656]. 3. Enhancing training and education for Defense Department accounting employees to prioritize fixing system glitches and errors that contribute to financial mistakes [46656]. 4. Implementing a more secure and reliable backup system to prevent the loss of critical financial files, such as the 16,000 files that vanished due to a flaw in the computing software [46656].
Fixes 1. Prioritizing fixing glitches in the systems that caused the mistakes by Defense Department accounting employees [46656]. 2. Identifying and correcting the root causes of the errors by the Army [46656]. 3. Implementing a stronger review process for supporting documentation of budget entries [46656].
References 1. The Defense Department’s Office of Inspector General 2. Army spokesman Dov Schwartz 3. Defense Finance and Accounting Service (DFAS) (mentioned indirectly as the source of the vanished files due to a flaw in the computing software) [46656]

Software Taxonomy of Faults

Category Option Rationale
Recurring one_organization (a) The software failure incident related to financial errors in the US Army's accounting systems, as reported in Article 46656, indicates that similar incidents have happened before within the same organization. The audit conducted by the Defense Department’s Office of Inspector General highlighted unreliable data used in preparing financial statements, leading to the possibility of the Army’s finances being materially misstated. The report also mentioned that more than 16,000 files vanished from the computer system of the Defense Finance and Accounting Service (DFAS) due to a flaw in the computing software, contributing to the errors. (b) The software failure incident related to financial errors in the US Army's accounting systems, as reported in Article 46656, does not explicitly mention similar incidents happening at other organizations. The focus of the article is primarily on the Army's accounting errors and the challenges faced in conducting a complete audit.
Phase (Design/Operation) design, operation (a) The software failure incident related to the design phase can be attributed to the glitches in the systems that partly caused the mistakes. The Inspector General largely attributed the errors to Defense Department accounting employees failing to prioritize fixing the glitches in the systems that partly caused the mistakes [46656]. (b) The software failure incident related to the operation phase can be linked to more than 16,000 files vanishing from the computer system of the Defense Finance and Accounting Service (DFAS) because of a flaw in the computing software. This flaw in the computing software led to the disappearance of a significant number of files, impacting the operation of the system [46656].
Boundary (Internal/External) within_system The software failure incident reported in Article 46656 involves financial errors within the system. The audit conducted by the Defense Department's Office of Inspector General found that the Army made trillions of dollars of accounting mistakes due to unreliable data used to prepare financial statements, leading to the possibility of materially misstated finances. The errors were largely attributed to Defense Department accounting employees failing to prioritize fixing glitches in the systems that caused the mistakes. Additionally, more than 16,000 files vanished from the computer system of the Defense Finance and Accounting Service (DFAS) due to a flaw in the computing software [46656].
Nature (Human/Non-human) non-human_actions (a) The software failure incident in this case was attributed to non-human actions, specifically a flaw in the computing software that caused more than 16,000 files to vanish from the computer system of the Defense Finance and Accounting Service (DFAS) [46656]. This flaw in the software contributed to the accounting errors and financial discrepancies reported in the audit.
Dimension (Hardware/Software) hardware, software (a) The software failure incident related to hardware: The article mentions that more than 16,000 files vanished from the computer system of the Defense Finance and Accounting Service (DFAS) due to a flaw in the computing software [46656]. (b) The software failure incident related to software: The audit conducted by the Defense Department’s Office of Inspector General found that the Army erroneously made $2.8 trillion in adjustments in the third quarter of 2015 to its Army general fund due to unreliable data used to prepare financial statements, indicating software-related issues [46656].
Objective (Malicious/Non-malicious) non-malicious (a) The software failure incident in this case does not seem to be malicious. The errors in the Army's accounting were largely attributed to glitches in the systems and a flaw in the computing software, as mentioned in the audit report by the Defense Department’s Office of Inspector General [46656]. (b) The software failure incident appears to be non-malicious, as there is no indication in the article that the errors were intentionally introduced to harm the system. The audit report highlighted unreliable data, glitches in the systems, and a flaw in the computing software as contributing factors to the financial errors [46656].
Intent (Poor/Accidental Decisions) unknown The articles do not provide specific information about a software failure incident related to poor decisions or accidental decisions.
Capability (Incompetence/Accidental) development_incompetence, accidental (a) The software failure incident related to development incompetence is evident in the article as it mentions that more than 16,000 files vanished from the computer system of the Defense Finance and Accounting Service (DFAS) due to a flaw in the computing software. This flaw in the software, which caused files to disappear, can be attributed to a lack of professional competence in the development or maintenance of the software system [46656]. (b) The software failure incident related to accidental factors is also highlighted in the article when it mentions that the errors in the accounting systems were partly caused by glitches that were not prioritized for fixing by Defense Department accounting employees. This indicates that the mistakes were introduced accidentally due to negligence or oversight in addressing known issues in the software systems [46656].
Duration unknown The software failure incident reported in Article 46656 does not specifically mention a temporary or permanent nature of the failure. The article primarily focuses on financial errors and accounting mistakes within the US Army, highlighting issues with data reliability, accounting systems, and missing files in the Defense Finance and Accounting Service's computer system. Therefore, based on the information provided in the article, it is unknown whether the software failure incident was temporary or permanent.
Behaviour crash, value (a) crash: The article mentions that more than 16,000 files vanished from the computer system of the Defense Finance and Accounting Service (DFAS) due to a flaw in the computing software, indicating a system crash [46656]. (b) omission: The article highlights that the Army often did not have the receipts or invoices needed to support figures in its budget, suggesting an omission of necessary documentation [46656]. (c) timing: The article does not specifically mention any timing-related failures. (d) value: The audit found that the Army erroneously made adjustments totaling trillions of dollars, indicating a failure in performing its intended functions correctly [46656]. (e) byzantine: The article does not mention any inconsistent responses or interactions related to the software failure incident. (f) other: The article does not provide information on any other specific behavior of the software failure incident.

IoT System Layer

Layer Option Rationale
Perception None None
Communication None None
Application None None

Other Details

Category Option Rationale
Consequence property, theoretical_consequence The consequence of the software failure incident reported in the article [46656] was primarily related to financial implications rather than direct harm to individuals. The software failure led to significant accounting mistakes within the US Army, resulting in trillions of dollars of adjustments and errors in financial statements. The errors impacted the accuracy of financial data used for management and resource decisions, potentially leading to material misstatements in the Army's finances. The audit highlighted unreliable data, missing receipts and invoices, and a flaw in the computing software that caused files to vanish from the system. The errors were attributed to glitches in the accounting systems and a lack of prioritization in fixing these issues, rather than direct consequences like harm, death, or delays to individuals. The focus was on the financial and operational implications of the software failure rather than human or physical consequences.
Domain finance, government (a) The failed system was related to the finance industry. The software failure incident involved financial errors in the US Army's accounting system, leading to trillions of dollars in adjustments and unreliable data for financial statements [46656].

Sources

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