The Department of Defense’s inability to track its finances continues, as the Pentagon failed its seventh audit on Friday. The DoD has a massive budget of $820 billion and spent over $170 million on the failed audit.
Since 2018, Congress has mandated the Pentagon to undergo an audit each year, with the goal of the DoD passing the financial report by 2028. So far, the Department of Defense has been unable to pass the audit. While department officials say they are making progress, still, fewer than a third of the Pentagon’s agencies have passed.
“This result was not a surprise, and I know that on the surface it doesn’t sound like we’re making progress. However, that is not the case,” Michael McCord, the Pentagon’s Under Secretary of Defense and Chief Financial Officer, said. “I believe the department has turned a corner in its understanding of the challenges, and more importantly, in addressing those challenges.”
The 1,700 auditors spent $178 million reviewing 28 Pentagon agencies. Nine agencies passed, 15 received disclaimers, and three opinions remain pending. The auditors believe one agency gave misstatements preventing a final opinion from being reached.
The Marines are one agency that still have not completed their audit. In 2023, the Marines became the first of the six branches to pass an audit. The Pentagon has $4.1 trillion in assets and $4.3 trillion in liabilities.
