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 Office of Financial Operations (FMO)


The Office of Financial Operations (FMO), under the Assistant Secretary of the Navy, Financial Management and Comptroller, acts on behalf of the Department of the Navy (DON) and is responsible for financial and accounting matters. FMO leads financial programs and activities designed to improve the way the DON does business and support the warfighter.

As Department of Defense (DoD) directives and policies are set for financial efficiency, effectiveness, and transparency, FMO reports on financial data.

FMO also develops and manages accounting and finance related programs to assist Budget Submitting Offices (BSO), Commands, and other Shared Service Providers (SSP) comply with the DoD requirements and audit response.

FMO’s support enables BSOs within each Command, and other SSPs developed to provide credible and affordable solutions to the Warfighter, to comply with DoD financial requirements.

FMO is comprised of the following divisions:

FMO-1: Operations Management Division
Provides operational and sustainment support of all Financial Improvement Audit Readiness (FIAR) related activities within the DON. Facilitates FMO business success by ensuring an overarching alignment across Divisions by maintaining continuous communications, and providing acquisition management, budgeting and resources, and analytical support to our customers.

FMO-2: Accounting & Financial Reporting Division
Governs financial data and processes and produces accurate, reliable, and timely DON Financial Reports.

FMO-3: Audit Response Division
Institutionalizes the Navy-wide financial audit response processes. Leads the financial audit response planning, execution and reporting while promoting and sustaining financial management improvements.

FMO-4: Internal Review & Evaluation Division
Manages the DON-wide initiative to standardize the methods used to execute financial business practices that result in the posting of financial transactions across the DON Commands. Also coordinates and oversees enterprise-wide audit sustainment activities through the development and management of a comprehensive evaluation program.


 Leadership Corner


Karen Fenstermacher
Deputy Assistant Secretary




​The FMO "Are you audit ready" video series is designed to introduce, explain, and reinforce key messages in support of the Department of the Navy’s (DON’s) auditability goals. Each video is centered on a core auditability concept and demonstrates actions, learning points, and/or commentary to help viewers understand how DON audit readiness is truly an "all hands effort".

How do you support audit readiness?

If the video does not play automatically, please click here to access the file on YouTube.

Audit Readiness Background

If the video does not play automatically, please click here to access the file on YouTube.

Why is Audit ReadiWhy is Audit Readiness important?: (Former U.S. Defense Secretary (SECDEF) Check Hagel)

If the video does not play automatically, please click here to access the file on YouTube.


 Quick Links

Operations and Management (FMO-1)
Accounting and Financial Reporting Division (FMO-2)
Audit Response Division (FMO-3)
Internal Review and Evaluation Division (FMO-4)
Financial Reports and Metrics Support
Transportation Incentive Program
Transportation Incentive Program Links
Regulations and Manuals
Account Finance Policies
Connect With Us!

Office of Financial Operations
915 Charles Poor Street, S.E., Bldg 157
Washington Navy Yard, D.C. 20374-5025

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