Pentagon Fraud and Accounting Errors: Feature and Not Bug

by | Dec 11, 2025

Pentagon Fraud and Accounting Errors: Feature and Not Bug

by | Dec 11, 2025

screenshot 2025 12 10 at 14 08 29 gao 25 108191 dod financial management accelerated timelines needed to address long standing issues and fraud risk

2028.

The plan is to spend four trillion more before they can deliver on proving where the money is going. You can’t make this up. I read the GAO reports so you don’t have to.

If fraud was a Ferris wheel, it would be shaped like the Pentagon.

The Marine Corps is the only organization to complete an audit and they comprise one percent of all DoD spending.

One percent.

As previously discussed, the Marine Corps was able to obtain and sustain a clean audit opinion in fiscal years 2023 and 2024 largely through a substantive-based audit approach and manual effort. The Marine Corps’ auditor noted that it performed a substantive-based audit approach, which included more than 70 site visits and testing of approximately 26 million assets. According to DOD, it was an all-hands effort to complete the Marine Corps audit. According to the total assets the DOD OIG reported in the fiscal year 2024 DOD agency financial report and the military service agency financial reports, the Marine Corps accounts for 1 percent of DOD’s assets.

There is one solution: freeze the pentagon spending machine until they can prove they know how to spend responsibly and provide accountability for whre the money goes.

Don’t hold your breath.

DOD’s financial management and business systems modernization has been on our High Risk List since 1995. We testified that, while DOD has taken steps to address this issue, it needs to do more in areas like action plans and demonstrating results.

Additionally, the full extent of fraud affecting DOD is unknown, so we’ve expanded this High Risk area to include fraud risk management.

Finally, DOD continues to face long-standing financial management issues as it works towards getting a “clean” audit opinion—i.e., when financial statements are presented fairly and are consistent with accounting principles.

https://files.gao.gov/reports/GAO-25-108191/index.html?_gl=1*kxb3ap*_ga*NDQ3NTE5NzMwLjE3NjUzOTMyOTQ.*_ga_V393SNS3SR*czE3NjUzOTMyOTMkbzEkZzEkdDE3NjUzOTMzMjUkajI4JGwwJGgw

Bill Buppert

Bill Buppert

Bill Buppert is the host of Chasing Ghosts: An Irregular Warfare Podcast and a contributor over time to various liberty endeavors. He served in the military for nearly a quarter century and contractor tours after retirement on occasion and was a combat tourist in a number of neo-imperialist shit-pits around the world.

He can be found on twitter at @wbuppert and reached via email at cgpodcast@pm.me.

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