• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Digital News Updates
  • Home
  • News
  • Politics
  • Business

Pentagon still can’t pass audit despite years of trying

November 20, 2024

(The Center Square) – The U.S. Department of Defense’s annual audit once again resulted in a disclaimer.

That means the federal government’s largest agency – with a budget of more than $840 billion – can’t fully explain its spending. The disclaimer this year was expected. And it’s expected again next year. The Pentagon previously said it will be able to accurately account for its spending by 2027.

“Despite the disclaimer of opinion, which was expected, the Department has turned a corner in its understanding of the depth and breadth of its challenges,” said Michael McCord, undersecretary of defense and chief financial officer. “Momentum is on our side, and throughout the Department there is strong commitment – and belief in our ability – to achieve an unmodified audit opinion.”

Of the 28 reporting entities undergoing standalone financial statement audits, nine got an unmodified audit opinion, one got a qualified opinion, 15 got disclaimers and three opinions remain pending.

“The Department continues to need the sustained investment, senior leadership commitment, and the support of our partners in Congress, federal regulators, the audit community, and our military and civilian personnel to accomplish its audit goals,” McCord said. “An unmodified audit opinion has always been the Department’s primary financial management goal, and with their help, I know it is achievable.”

In February, a Congressional watchdog said it was again unable to determine if the federal government’s consolidated financial statements were reliable, largely due to problems at the Pentagon. The U.S. Government Accountability Office, which is Congress’ research arm, said it was hampered by “serious financial management problems at the Department of Defense,” among other issues.

Each year, teams of independent public accountants audit the department’s $4.1 trillion in assets and $4.3 trillion in liabilities.

The DOD Office of Inspector General audits the department’s overall or consolidated financial statements in support of that independent public accounting firms audit the individual military services and other DOD reporting entities, including the defense agencies that are all pieces of that overall audit that IG looks at. The overall DOD audit is comprised of or supported by 28 separate audits of these different components, McCord said.

“This result was not a surprise and I know that on the surface it doesn’t sound like we’re making progress,” he said. “However, that is not the case … The department has improved from less than 7% to over 82% of its funding being free of material weaknesses.”

By Brett Rowland | The Center Square

Filed Under: Featured, Home Featured, News

Related Articles:

  • President Trump Signs Senator Sheehy’s Aerial Firefighting Bill Into Law
  • Senator Daines Leads Bipartisan Push to Celebrate “Great Outdoors Month”
  • Here’s how American taxpayers will be impacted if the ‘big, beautiful bill’ fails
  • Sheehy Introduces Legislation to Compensate Service Members Discharged Over COVID Vaccine Mandate
  • Gianforte Appoints Marta Bertoglio as Department of Commerce Director
  • Montana Attorney General Launches Investigation into Lee Enterprises Following Cyberattack

Primary Sidebar

Digital News Updates Logo

Recent News Posts

  • North Dakota to Celebrate Grand Opening of Theodore Roosevelt Presidential Library
  • Montana Attorney General Launches Investigation into Lee Enterprises Following Cyberattack
  • VA slams Democrat governor for falsely claiming vets could be denied care
  • Montana State names 2025 presidential scholars

Recent Politics Posts

  • Gianforte Praises Supreme Court Ruling
  • Zinke Urges Interior Secretary to Act on Projected Low Flathead Lake Levels
  • Senator Daines Leads Bipartisan Push to Celebrate “Great Outdoors Month”
  • Sheehy Introduces Legislation to Compensate Service Members Discharged Over COVID Vaccine Mandate

Recent Business Posts

  • Bridger Aerospace Welcomes Executive Order to Reshape Wildland Firefighting
  • Gianforte Appoints Marta Bertoglio as Department of Commerce Director
  • Daktronics to Announce Q4 and Fiscal 2025 Results on June 25
  • Performance Engineering Earns National Honors

Copyright © 2025 Digital News Updates, All Rights Reserved.