auditor have the meanings given those terms in section 3521(e) of title 31, United States Code. (2) The term qualified , with respect to the audit status of a financial statement, includes the characterization modified. (3) The term unqualified , with respect to the audit status of a financial statement, includes the characterizations clean and unmodified. (b) Reduction To Encourage Financial Accountability If, by March 2 of a fiscal year, the Department of Defense has not submitted a financial statement for the previous fiscal year, or if, by such date, such financial statement has been submitted but has not received either an unqualified or a qualified audit opinion by an independent external auditor, the discretionary budget authority available for the Department of Defense shall be reduced by .5 percent. (c) Application of reduction Consistent with applicable laws, the Secretary of Defense shall apply any reduction under subsection (b)— (1) proportionately to each Department of Defense account (other than an account listed in subsection (e) or an account for which a waiver is made under subsection (f))