Defense Finance and Accounting Service (DFAS)

The (DFAS) is an agency of Finance management for defense activities. This is an agency of the U.S. Department of Defense (DOD) that was established in 1991 this agency was developed under the control of the Secretary of Defense or Chief Financial Officer these person cooperated with the DOD and then managed all the financial strategies for defense activities like military defense and more.

The headquarters of this agency is in Indianapolis, Indiana and its director is Audrey Davis. In this agency, there are about more than 12000 employees working. Their job is to maintain the activities and keep an eye on all the financial and defense activities occurring in their department. DFAS is considered the world’s largest Finance and accounting Operation. DFAS is responsible for all the employees, Vendors, Contractors, and Service member’s payments strategies and demands. It is also responsible for the preparing and annual functioning of financial and accounting statements and consolidations.

One of the most important function that was performed by Defense Finance and Accounting Service DFAS is that of handling military payments. DFAs pay all the officers of the Military DOD and also many civilian personnel, retirees, and also the main persons like Contractors and Venfors of the DOD. This also financially supports some outsider customers like electronic government. These customers include like Department of Health and Human, the Department of Energy, the Department of Veterans Affairs, the Office of the President, Foreign Parteners, the United States Media Agency of Global, and the Department of State.

Some of the main objectives that were performed by the Defense Finance and Accounting Service DFAS are the following

Accounting Services

The major objective of DFAS is to manage accounting services including financial accounting and then they report all the info to the Department of Defence DOD. In accounting services include various things like managing accurate useful and honest financial records and then they support budgeting, help in making financial decisions, and many more.

Financial Management

Financial management is the second major objective of Defense Finance and Accounting Services DFAS and it provides all the reports, analysis, and help in decision-making services by providing all the financial support to the Department of Defence DOD. All these things help DOD in taking care of the use of resources and also help them in making financial decisions.

Payment Services

DFAs provide and process all kinds of payments that are given to the defense departments for their payments like military and civilian personnel payments and they also pay to contractors and vendors. These payments include various salary payments like traveling, Reimbursements, and other financial support that is provided to the defense department.

Some of the major events that happened in the history of the DFAS agency are the following

  • In 1991, the Defense Finance and Accounting Service Agency was established
  • In 1995, the Department of Defense considered DFAS as the fourth Estate
  • In 2002, it received its first unmodified financial statement from an audit agency
  • In 2010, Audit Readiness Directorate was created in this year

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