1. Short title This Act may be cited as the Defense Spending Accountability Act . 2. Effect of failure to meet deadlines for validation of financial statements of the Department of Defense as ready for audit and for submission of full audit on financial statements of the Department of Defense for fiscal year 2018 (a) Pay reduction for failure To meet deadlines Subject to subsection (b), but notwithstanding any other provision of law, the annual rate of pay for each Department of Defense position listed in subsection (c)— (1) beginning with the first pay period commencing on or after the deadline specified in section 1003(a)(2)(A)(ii) of the National Defense Authorization Act for Fiscal Year 2010 ( Public Law 111–84 ; 10 U.S.C. 2222 note), and for each pay period thereafter, shall be reduced by 5 percent if the financial statements of the Department of Defense are not validated as ready for audit by that deadline; and (2) beginning with the first pay period commencing on or after the deadline specified in section 1003(a)(2)(A)(iii) of the National Defense Authorization Act for Fiscal Year 2010 ( Public Law 111–84 ; 10 U.S.C. 2222 note), as added by section 1003(b) of the National Defense Authorization Act for Fiscal Year 2014 ( Public Law 113–66 ; 127 Stat. 842), and for each pay period thereafter, shall be reduced by 10 percent if a full audit of the financial statements of the Department of Defense for fiscal year 2018 is not completed by that deadline. (b) Due process protections (1) Notice and opportunity to respond At least 30 days before a reduction in pay takes effect under paragraph (1) or (2) of subsection (a) for a Department of Defense position listed in subsection (c), the Secretary of Defense shall— (A) notify the individual occupying the position of the imminent pay reduction