The Pentagon has failed its seventh consecutive audit, once again unable to fully account for its enormous $824 billion budget.
The audit, which was released on Friday, resulted in a disclaimer of opinion, meaning the auditors could not obtain sufficient information to form an accurate judgment of the department’s financial accounts.
Out of the 28 reporting entities within the Department of Defense (DoD), only 9 received a clean audit opinion, 1 received a qualified opinion, 15 were marked with disclaimers, and 3 are still pending review.
Despite this setback, officials are optimistic about the future. Michael McCord, the Under Secretary of Defense and Chief Financial Officer, expressed confidence that the DoD has “turned a corner” in understanding its budgetary challenges.
He stated that the momentum for improvement is building and emphasized the department’s commitment to achieving a clean audit by 2028, as mandated by the National Defense Authorization Act.
During a briefing, McCord refrained from calling the results a “failure,” noting that about half of the audit opinions were clean. He likened the situation to a report card with both positive and negative marks, suggesting that the overall picture is not one of complete failure.
McCord also emphasized the importance of the audit process, which, while still a work in progress, is helping to drive financial management reform within the DoD.
This reform is aimed at improving financial integrity, increasing transparency, and providing better support for military personnel. While challenges remain, McCord assured that the DoD is committed to reaching its goal of a clean audit opinion, with continued efforts to improve its financial oversight.