Who designated DFAS as the principal agency responsible for DoD finance?

Who designated DFAS as the principal agency responsible for DoD finance?

• A. The President
• B. The Secretary of the Treasury
• C. Secretary of Defense
• D. Department of Defense Comptroller

Answer: (C)

The Secretary of Defense has the authority to designate the principal agency for DoD finance. In the DoD, financial management framework is centralized under this leadership, so appointing a single organization to handle finance functions department-wide ensures consistent policies, control, and efficiency. DFAS—the Defense Finance and Accounting Service—was designated to provide centralized payroll, disbursements, accounting, and financial reporting for the entire department, aligning activities across all DoD components. The President doesn’t assign internal DoD finance structures, and the Secretary of the Treasury oversees civilian federal finances rather than DoD internal organization. The DoD Comptroller develops and oversees financial policy and management, but the actual designation of the principal finance agency comes from the Secretary of Defense.

The Secretary of Defense has the authority to designate the principal agency for DoD finance. In the DoD, financial management framework is centralized under this leadership, so appointing a single organization to handle finance functions department-wide ensures consistent policies, control, and efficiency. DFAS—the Defense Finance and Accounting Service—was designated to provide centralized payroll, disbursements, accounting, and financial reporting for the entire department, aligning activities across all DoD components.

The President doesn’t assign internal DoD finance structures, and the Secretary of the Treasury oversees civilian federal finances rather than DoD internal organization. The DoD Comptroller develops and oversees financial policy and management, but the actual designation of the principal finance agency comes from the Secretary of Defense.