The "Reviewing Every Check and Each Invoice Purchasing Troops' Supplies Act," or "RECEIPTS Act," addresses the Department of Defense's (DoD) long-standing failure to produce auditable financial statements, a requirement dating back to the Constitution and various federal laws. Congress finds that the DoD has consistently been on the Government Accountability Office's "High-Risk" list due to its inability to control costs, ensure accountability, and prevent waste. Despite previous initiatives and deadlines, the DoD has not achieved a clean audit opinion.

To incentivize compliance, the bill offers significant benefits if the DoD or its components achieve an unqualified audit opinion on their financial statements after fiscal year 2028. The Department of Defense would gain enhanced general transfer authority, allowing it to move up to $10 billion or 1 percent of its total budget authority in the national interest without prior Congressional notice. Similarly, individual military departments or Defense Agencies would see increased thresholds for reprogramming funds without Congressional notification. Additionally, achieving a clean audit would lead to the cessation of several existing reporting requirements related to financial statements.

Conversely, the bill imposes strict consequences if the DoD fails to obtain an unqualified audit opinion for its fiscal year 2028 financial statements by December 31, 2028. Key financial leadership positions, including the Under Secretary of Defense (Comptroller) and the Assistant Secretaries for Financial Management of the Army, Navy, and Air Force, would require nominees to be Certified Public Accountants (CPAs) with prior experience as a chief financial officer of an audited agency or public company. Their duties would also be expanded under the Deputy Secretary of Defense. Furthermore, the Secretary of Defense would be required to transfer the non-defense payroll and finance services performed by the Defense Finance and Accounting Service (DFAS) to another government entity.

The bill also mandates structural and technological reforms to improve financial accountability. It requires DFAS to amend its mission statement to reflect its joint responsibility with military services for accurate accounting and achieving an unqualified audit. Congress expresses a sense that the DoD should maximize the use of automation and artificial intelligence to prepare and audit financial statements, authorizing $300 million for this purpose, offset by terminating existing consulting contracts. Finally, the bill establishes a new DoD Audit Committee, chaired by the Deputy Secretary of Defense and composed of members including Congressional appointees, to select and oversee an independent external auditor for the Department's financial statements, explicitly excluding current financial officers from membership.