Pentagon is in HOT Water After Failing Fifth Audit and Losing $220 Billion in Assets
If you weren’t convinced that there is something drastically wrong with our government, then let me give you just one more reason that you can be sure that it is.
The Government Accountability Office (GAO) released a report on Tuesday that uncovered the Department of Defense’s (DOD) fifth consecutive failure to pass an audit. The agency was unable to document or account for at least $220 billion in government-furnished property, according to the Daily Caller. Despite being mandated by federal law since 1994, the DOD had long ignored this directive due to its colossal size, reported Military.com.
This past November saw the Pentagon fail its fifth audit after it could not validate 61% of its $3.5 trillion assets. To complete this year’s overall audit of the department, 1,600 auditors were gathered and numerous site visits, both physical and virtual, were conducted over a span of 220 and 750 visits respectively. An estimated cost of $218 million was expected for the entire endeavor.
Remarkably, GAO’s study also pointed out that auditors had initially alerted DOD back in 2001 about their lack of accountability over government property; yet they failed to take any meaningful action till now. In 2014, they reported GFP’s estimated value to be at least $220 billion; however, that figure is believed by many experts to be significantly lower than what is actually owed.
Additionally, one other alarming fact revealed by this report was that DOD is currently the only major federal agency unable to receive a positive audit opinion based on its financial statements. Mike McCord, who is the Pentagon comptroller, expressed his disappointment in only seeing slight progress towards achieving a clean audit this year but maintained an optimistic outlook, nonetheless. He stated that although there are still improvements needed in order for them to pass future audits with flying colors, he believes that the process is gradually making them better incrementally and that ultimately their efforts will pay off in the long term.