Pentagon Fails Audit for 7th Year in a Row
For the seventh consecutive year, the Pentagon has failed its annual audit, which assessed over $4.1 trillion in assets and $4.3 trillion in liabilities. Despite the failing grade, Department of Defense (DoD) Comptroller Michael McCord insists progress is being made, noting improvements in tracking funds and identifying weaknesses in financial management.
Nine of the Pentagon’s 28 audited entities received a “clean” audit opinion, meaning their financial statements were deemed accurate. However, 15 entities received a “disclaimer,” as auditors were unable to verify their financial accuracy. The audit report highlights ongoing challenges, particularly with outdated financial systems and inventory management.
The DoD aims to achieve a full passing audit by 2028, as mandated by Congress. McCord believes the department is “turning a corner” and, with continued progress, hopes to meet this goal by improving financial oversight and tracking material assets more effectively.
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