On Friday, the Pentagon failed its seventh consecutive audit, reportedly indicating that the nation’s largest government agency is still unable to completely account for its more than $824 billion budget.
However, officials remain optimistic about their progress toward a clean audit in 2028.
The Department of Defense technically received a disclaimer of opinion, which indicates that it did not provide auditors with sufficient information to form an accurate opinion.
The objective is to obtain a clear audit opinion, which certifies that the financial statements are accurate, without any modifications.
A qualified opinion indicates that the finances are generally reliable, despite the presence of omissions and concerns.
Independent audits were conducted by 28 entities operating under the Pentagon, which collectively comprise the Defense Department’s report card.
Of those, nine received an unmodified audit opinion, one received a qualified opinion, 15 received disclaimers, and three opinions are still pending.
The Pentagon anticipates that the ultimate number of clean or qualified audits will be approximately equivalent to that of the previous year.
Since the agency was legally required to conduct audits in 2018, the Pentagon has never successfully completed one.
An exhaustive inventory of the Defense Department’s extensive array of systems continues to pose a significant obstacle to auditing.
The 2024 National Defense Authorization Act mandates that the Pentagon achieve a spotless audit by 2028.
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