The DoD Office of Inspector General has released its latest audit on the Department of Defense’s efforts to address long-standing weaknesses in accounting for Government Property in the Possession of Contractors (GPIPC).
This new report: Audit of DoD Efforts to Remediate Financial Statement Material Weaknesses Related to GPIPC reinforces what many in the GovCon community already know: accurate property accountability remains a critical obstacle on the path to a clean DoD audit.
Government Property in the possession of Contractors has been reported as a material weakness since 2001. Furthermore, Congress increased the pressure with the 2024 National Defense Authorization Act which mandates an unmodified (clean) Agency-wide opinion by FY 2028.
According to the Inspector General, the DoD’s current corrective actions are still falling short. Defense Components continue to struggle with reconciling GPIPC balances, validating existence and completeness, and aligning their systems with DoD-wide solutions.
GFP Module Reporting
A central theme of this Inspector General report focuses on the Government Furnished Property (GFP) Module in PIEE. The DoD established the GFP Module as the enterprise solution for tracking and reporting GPIPC; however, the IG found that Components have not fully implemented it, and most Accountable Property Systems of Record (APSRs) still lack direct interfaces.
As A2B Tracking has long highlighted, visibility, automation, and system-to-system data integrity are essential for audit readiness and operational readiness. When GPIPC cannot be accurately tracked and validated, the DoD cannot rely on the data needed for financial reporting—or for warfighter support. In 2026, organizations that manage Government Property need to have a modern property management system that provides automated reporting to the GFP Module.
This Inspector General report concludes that without full adoption of the GFP Module and updated APSR interfaces, the DoD is unlikely to meet its FY 2028 audit mandate. This underscores a broader pattern seen in recent Defense updates and past audit results: the Department needs consistent, automated, and enforceable processes to manage property across the contractor ecosystem. Furthermore, DoD components need to address this weaknesses in accounting for Government Property.
For government contractors and program leaders, the message is clear: GPIPC accountability is under heightened scrutiny, and expectations for accurate, real-time GFP Module reporting continue to increase.
You can read the full Inspector General report here: Audit of DoD Efforts to Remediate Financial Statement Material Weaknesses Related to GPIPC
UC! Web can support
If you’d like to discuss how A2B Tracking’s UC! Web can automate reporting to PIEE, WAWF, GFP Module and IUID Registry to support your compliance objectives and audit readiness, A2B Tracking is here to help.
