Pentagon again struggles to produce ‘clean’ audit of sprawling operations

The Pentagon’s comptroller said Tuesday that senior leadership is making steady progress in getting the Defense Department’s financial house in order, even as most military agencies and services once again failed to receive a clean bill of health in their annual audit

The Department of Defense this week announced the results of the full-scope audit, performed by the department’s independent Office of Inspector General and public accounting firms that have no connection to the military. The Pentagon has yet to pass the wide-ranging financial examination.

About 1,200 auditors conducted nearly 300 in-person site visits and more than 1,000 virtual examinations to review the Defense Department’s more than $3.2 trillion in assets and $3 trillion in liabilities, Pentagon officials said.

“Findings from the audits catalyze change by spotlighting areas that need improvement and giving department leaders the information they need to prioritize modernization efforts and effect meaningful, long-term change,” said Undersecretary of Defense Michael McCord, the Pentagon’s chief financial officer.

The Pentagon employs almost 3 million people, both civilian and military, manages one of the federal government’s largest real estate property portfolios located in all 50 states and more than 40 countries, and is responsible for more than $320 billion in inventory, more than six times the size of Walmart. – READ MORE