Managing the money: Independent auditors validate the commissary agency’s ability to account for its FY ’23 finances

FORT GREGG-ADAMS, Va. – When it comes to money, the Defense Commissary Agency (DeCA) delivers millions of dollars in patron savings annually while accurately accounting for every dollar received and spent. That’s the assessment of independent auditors who validated the agency’s fiscal year (FY) 2023 financial statements with an unmodified opinion.

DeCA’s unmodified opinion, its 22nd in the last 23 years, means a third-party examination has determined the agency’s financial house is in order, said John Hall, DeCA’s director and CEO.

“Being able to demonstrate to Congress, the Department of Defense and the American taxpayer that we are responsible stewards of the finances entrusted to us is a significant testament to the strength of the commissary benefit,” Hall said. “An unmodified opinion means we are transparent and effective as we deliver a vital benefit for our military community.” 

The following is a snapshot of DeCA’s financial highlights for FY 2023:

• DeCA surpassed mandated 25 percent patron savings (25.5 percent) which returned $1.6 billion to shoppers.

• Commissaries generated more than $4.6 billion in annual sales and $4.9 billion in total revenue.

• DeCA increased sales by 9.6 percent and foot traffic in commissaries surged over 7 percent versus FY 2022.

• DeCA generated $240.9 million in surcharge revenue. Congress has mandated collection of the surcharge (currently 5 percent) to pay for commissary construction, equipment and maintenance.

• The agency also processed 64.5 million transactions in its stores.

For the more than 12,000 commissary employees in 13 countries, an unmodified opinion stamps what they do in delivering the benefit, said Stephan Davis, the agency’s chief financial officer.

“All our commissary employees worldwide have played a part in this unmodified opinion,” Davis said. “Every day we demonstrate how serious we are about being accountable and auditable when we properly certify time and attendance, account for products in our stores and warehouses, and manage sales transactions at the front end.”

The independent auditor, CliftonLarsonAllen (CLA), looks at about 500 actions that demonstrate the integrity of DeCA’s internal financial processes and controls and its interactions with external partners, the Defense Finance and Accounting Service and the Defense Logistics Agency.

Finally out of the shadows of COVID-19 pandemic restrictions that limited some of CLA auditors to virtual assessments, “the audit process has returned to normal,” said Robert Strimple, chief of the compliance and reporting branch in DeCA’s resource management directorate. “For the first time since COVID, we were able to complete formal inventories at our overseas locations.”

Strimple added that the auditors are responsible for obtaining sufficient, appropriate evidence to support their opinion. The organization being audited must show it has an effective system of internal processes and controls with detailed records that comply with accounting standards. 

Like all defense agencies, DeCA is aligned with the DOD Consolidated Financial Statement Audit, which means the agency’s financials are part of the Defense Department’s process. Throughout the fiscal year, DeCA provides DOD’s Financial Improvement and Audit Readiness Office with required data to keep the Department informed of the agency’s financial management.

For DeCA, the auditing process starts when CLA auditors review the agency’s financial statements and all related internal controls and transactions at commissaries and the agency headquarters at Fort Gregg-Adams, Virginia.

“DeCA’s ability to sustain an unmodified opinion demonstrates the agency’s commitment and passion to serve our military community,” said Rosie Leonard-Greer, DeCA’s director of accounting. “It is truly an honor and a privilege to help carry out DeCA’s mission and show we do so under great scrutiny.”

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About DeCA: The Defense Commissary Agency operates a worldwide chain of commissaries providing groceries to military personnel, retirees and their families in a safe and secure shopping environment. Commissaries provide a military benefit, saving authorized patrons thousands of dollars annually on their purchases compared to similar products at commercial retailers. The discounted prices include a 5-percent surcharge, which covers the costs of building new commissaries and modernizing existing ones. A core military family support element, and a valued part of military pay and benefits, commissaries contribute to family readiness, enhance the quality of life for America’s military and their families, and help recruit and retain the best and brightest men and women to serve their country.