Ernst & Young Wins $414 Million Air Force Financial Statement Audit Contract

Ernst & Young LLP has been awarded a labor-hour contract worth up to $414 million to audit the Department of the Air Force’s General Fund and Working Capital Fund financial statements. The Defense Finance and Accounting Service awarded the contract, with work to be performed in McLean, Virginia, and an expected completion date of Dec. 31, 2027.

Air Force Financial Statement Audit Details

Ernst & Young will audit the two funds that report the Air Force’s financial activity: the General Fund, which covers broad service operations, and the Working Capital Fund, which accounts for activities that recover costs through sales or charges. The work centers on whether amounts in the financial statements are supported by evidence and whether the relevant financial controls and records can be relied upon.

A related audit-services procurement describes financial-statement audits and attestation work conducted through planning, internal-control review, testing and reporting. Its supporting justification calls for work under government financial-audit standards and the Government Accountability Office/Council of the Inspectors General on Integrity and Efficiency Financial Audit Manual. The broader framework also covers audit-readiness and remediation validation, agreed-upon procedures and examinations under Statement on Standards for Attestation Engagements No. 18.

The assignment comes after the Air Force’s 2025 financial report recorded a disclaimer of opinion on its General Fund statements: Ernst & Young could not obtain sufficient appropriate evidence to reach an audit opinion. The Air Force’s General Fund and Working Capital Fund were both among the Defense Department reporting entities that received disclaimers that year, according to Government Accountability Office testimony.

Award and Contractor Background

The award resulted from a competitive acquisition that received one quote. Ernst & Young also holds an earlier Air Force audit contract with a potential value of $245.4 million and a scheduled performance end of Dec. 31, 2026. That contract covers the General Fund and Working Capital Fund statements for fiscal years 2022 through 2026, as well as attestation work for the Defense Enterprise Accounting and Management System.

The related procurement justification says six agreements with independent accounting firms were awarded in June 2021. The government subsequently extended the ordering period for five of them through June 2028 to maintain audit-services capacity while it competed further Defense Department audit work.

This award was disclosed by the DoW in its daily press release. Additional contract details will be available on HigherGov in approximately 90 days under HQ042327FE004 after the contract is formally disclosed by the government.