Navigating Priorities: Budget Strategy, Audit Success & Navy's Tech Evolution

Original Broadcast 4/13/25

Presented by KPMG

On this edition of Fed Gov Today, host Francis Rose explores how agencies are adapting to constrained budgets under a full-year continuing resolution, the Pentagon’s progress toward audit readiness, and the Navy’s updated vision for information superiority. Former government leaders Tom Harker and Dave Mader offer insight into financial strategy amid shifting priorities. Joseph Nave of KPMG shares the keys to audit success, spotlighting the Marine Corps’ achievements. Navy CIO Jane Rathbun closes the show with a deep dive into ISV 2.0, the Navy’s evolving data-centric digital transformation plan.

Financial Flexibility and Strategic Forecasting in a Continuing Resolution Year

Tom Harker, Former Assistant Secretary of Financial Management and Comptroller of the Navy, and Dave Mader, Former Controller at the Office of Management and Budget and now Director for Business Development at the Partnership for Public Service, break down the implications of the full-year continuing resolution on agency operations. They discuss how agencies can remain agile, realign priorities, and prepare for the fiscal changes coming with the FY26 budget.

Key Takeaways:

• CR Provides Flexibility—but Uncertainty Remains: Agencies are operating under a full-year continuing resolution (CR), which offers some flexibility but limits new initiatives and shifts in funding priorities.

• Strategic Planning Essential for FY26: CFOs must proactively model and strategize to adapt to expected reductions in civilian agency budgets and evolving White House priorities.

• Potentially Record-Breaking Q4: Due to compressed timelines and shifting priorities, Q4 of FY25 may be one of the busiest ever for budget execution and workforce adjustments.

The Marine Corps Model: Leading the Way to Audit Readiness

Joseph Nave, Principal at KPMG, outlines how the Marine Corps’ achievement of a clean audit opinion for two consecutive years serves as a blueprint for other Defense Department entities. He emphasizes leadership accountability, cross-functional coordination, and a sustained culture of audit readiness as critical success factors.

Key Takeaways:

• Tone at the Top Drives Success: Clear, unified messaging from leadership about the importance of audit readiness is vital for achieving and sustaining clean audit opinions.

• Sustainability Requires Modernization: Maintaining audit readiness depends on workforce training, modern IT systems, and revisiting outdated policies.

• Audit Culture Must Be Institutionalized: Agencies must embed audit practices into their daily operations, shifting mindsets from one-time compliance to continuous readiness.

ISV 2.0: The Navy’s Strategic Leap into a Data-Centric Future

Jane Rathbun, Chief Information Officer of the Navy, details the rollout of the Navy’s Information Superiority Vision (ISV) 2.0. With pillars of “Optimize, Secure, Decide,” ISV 2.0 builds on lessons from the past five years, prioritizing data-centric architectures, cybersecurity from design to disposal, and decision advantage at the tactical edge—all aligned with evolving technology and administration priorities.

Key Takeaways:

• ISV 2.0 Reflects a Shift Toward Data and AI: The Navy’s updated digital strategy emphasizes a data-centric approach to enable faster, more informed decision-making at every level.

• Security Starts at the Design Phase: The “Secure” pillar shifts focus from reactive defense to proactive lifecycle cybersecurity integration across all systems.

• Modern Platforms Enable Tactical Edge Capability: Initiatives like Flank Speed and Zero Trust architecture demonstrate the Navy’s commitment to delivering robust, agile IT ecosystems that support both warfighting and business needs.