Defense Agency, or organization or element of the Department, as applicable, after the Department of Defense or such military department, Defense Agency, or organization or element receives an audit opinion on its full financial statements. (d) Audit ready defined In this section, the term audit ready , with respect to the full financial statements of the Department of Defense, a military department, a Defense Agency, or another organization or element of the Department of Defense, means that the Department of Defense, the military department, the Defense Agency, or the organization or element has in place critical audit capabilities and associated infrastructure to successfully start and support a financial audit of its full financial statements. 1004. Failure to obtain audit opinion on fiscal year full financial statements of the Department of Defense (a) Reduction in basic pay of military Secretaries for failure to obtain audit opinion on full financial statements for fiscal years 2018 and thereafter If the Department of Defense does not obtain an audit opinion on its full financial statements for fiscal year 2018, or any fiscal year thereafter, by March 31 of the succeeding calendar year, the annual rate of basic pay payable for each Secretary of a military department for the calendar year next following such succeeding calendar year shall be the annual rate of basic pay for positions at level III of the Executive Schedule pursuant to section 5313 of title 5, United States Code, rather than the annual rate of basic pay otherwise provided for the positions of Secretary of a military department by law. (b) Review and recommendations on efforts To obtain audit opinion on full financial statements for fiscal year 2018 by March 31, 2019 (1) In general If the Department does not obtain an audit opinion on its full financial statements for fiscal year 2018 by March 31, 2019, the Secretary of Defense shall establish within the Department a team of distinguished, private sector experts with experience conducting