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• An assessment by the Pentagon’s inspector general has given another indication that DoD’s path to audit readiness is in serious trouble. The IG found serious deficiencies with the ways the Defense Finance and Accounting Service accumulates and reports transactions involving agencies outside the military services. Because of that, the IG said it appears “increasingly probable” that those agencies’ financial statements from prior years were misstated. The problems, in turn, will continue to call DoD’s overall financial statement into doubt until they’re fixed. Among the problems, according to the IG: DFAS doesn’t have an accurate picture of defense agencies’ financial transactions. It also lacks a clear understanding of how many divisions within each agency are supposed to be reporting those transactions. (Department of Defense Office of Inspector General)

• House Republicans are back to the drawing board on a continuing resolution past Dec. 22, since they don’t have the votes for their original plan, which funded civilian agencies to Jan. 19. House Minority Whip Steny Hoyer (D-Md.) said Republicans are discussing another version that would extend funding for all agencies through Jan. 19. It would also include some temporary extensions for the Veterans Choice Program and the Children’s Health Insurance Program. (Federal News Radio)

• House Oversight and Government Reform Committee Ranking Member Elijah Cummings (D-Md.) wants to know more about agencies’ reorganization plans. He sent a letter to OMB Director Mick Mulvaney asking for copies of each agency’s proposal, so the committee can determine if staff reductions will impact services Americans rely on. (House Oversight and Government Reform Committee)

• Five new IT oversight areas for 2018 from the House. House Oversight and Government Reform Committee members are tasking the Government Accountability Office with a series of new audits about federal IT and acquisition. In a letter to Comptroller General Gene Dodaro, lawmakers asked GAO to review best practices around the Federal IT Acquisition Reform Act (FITARA), as well as how agencies are eliminating duplicative systems under the law. Auditors also will evaluate at least 15 mission-critical IT acquisitions and the top 10 legacy system modernization programs. (House Oversight and Government Reform Committee)

• The Defense Department has released its detailed policy on transgender people in the military. The policy outlines specific rules for recruitment, saying a person must be emotionally stable for 18 months after sex reassignment surgery before joining the military. DoD will begin accepting transgender military recruits on Jan. 1.

• New additions to the Federal Salary Council. President Donald Trump has announced he’s appointing Ronald Sanders to chair the council. Sanders is the former chief human capital officer for the Office of the Director of National Intelligence. Katja Bullock will also be joining the council. She’s a longtime White House aide currently working for Gov. Larry Hogan (R-Md.).

• The Pension Benefit Guaranty Corporation has shrunk its footprint. The General Services Administration announced a new lease for the PBGC. It will consolidate its headquarters from three locations into one spot in Washington, D.C. The 15-year lease will reduce the corporation’s size by more than 35,000 rentable square feet. (General Services Administration)

• The Trump administration has handed a new assignment to the Interior Department. President Trump wants to improve the nation’s supply of critical minerals. The new policy orders Interior to create a database of geographic information, to help miners and producers of critical elements locate domestic sources of raw materials. It also orders Interior to streamline leasing and permitting, to speed up exploration and extraction. Interior and the Defense Department have 60 days to establish a list of critical minerals. (White House)

• A new policy from the Agriculture Department allows states more flexibility in the distribution and certification process for the Supplemental Nutrition Assistance Program, or SNAP. States can now get more help from contractors with verifying recipients. USDA Secretary Sonny Perdue said it will also allow for more innovation in efficiency and customer service. (Department of Agriculture)

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