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Pentagon fails sixth audit in a row

Pentagon fails sixth audit in a row

Kyiv • UNN

Nov 18 2023, 03:34 PM • 2388 views

This time, 1,600 auditors combed through the US Department of Defense's $3.8 trillion in assets and $4 trillion in liabilities.

The Pentagon has failed its annual audit for the sixth year in a row, US Department of Defense Comptroller Mike McCord said, UNN reports citing The Hill.

Of the 29 separate audits, the ministry passed only seven this year, the same as the year before, McCord said on Wednesday.

One more received a "qualified" rating - one step below passing - while three are still ongoing and 18 received unsatisfactory ratings, with no fraud found, he said.

For an overall audit to be approved, all audits must pass.

McCord said that while "cases are showing progress," overall "it's not enough."

U.S. Defense Secretary Lloyd Austin "believes we need to do more and move faster," but that successful audits are still a long way off, he added.

Federal law since the early 1990s has required mandatory audits of all government agencies. The Pentagon only started audits in 2018 and has achieved only incremental improvements each year.

This time, 1,600 auditors combed through $3.8 trillion in assets and $4 trillion in liabilities, making about 700 site visits. They found that half of the DoD's assets were unaccounted for.

The audit process is challenging for the Pentagon because of the enormous size and scope of the department. The US Department of Defense covers more than half of US discretionary spending, and its assets are very diverse, including personnel, supplies, bases, and weapons.

Pentagon Response

Asked on Thursday whether the failed inspection sends a bad signal to both U.S. adversaries and allies, Deputy Pentagon Press Secretary Sabrina Singh said the effort is "an ongoing and continuing process."

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While these were not the results we wanted, we certainly learn every time we are tested,

Julia Shramko

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