On Friday, Just the News posted an article about what is necessary for the Defense Department to pass an audit.
The article reports:
The Defense Department has been plagued by serious financial reporting issues that must be fixed for the agency to pass a full audit for the first time, the Government Accountability Office said in a new report.
“For the seventh consecutive year since the Department of Defense (DOD) was required to undergo full-scope audits, DOD received a disclaimer of opinion on its financial statement audit in fiscal year 2024, meaning DOD could not provide auditors with sufficient, appropriate evidence needed to support information in its financial statements due to ineffective systems and processes,” the GAO reported this month.
The National Defense Authorization Act for fiscal 2024 requires the agency to “receive an unmodified (clean) audit opinion by December 31, 2028.”
Despite the agency’s failure to pass a full audit, Congress again raised defense spending in fiscal 2025 to nearly $900 billion.
The defense budget could reach $1 trillion after an additional increase for fiscal 2026, based on President Donald Trump’s budget request.
The article concludes:
“DOD’s assets represent a significant portion of the federal government’s reported total assets. The ability to properly account for and report these assets would improve DOD’s ability to successfully carry out its mission and is critical to achieve an unmodified (clean) audit opinion,” the GAO report reads.
The Defense Department is the only major federal agency that hasn’t received a clean audit opinion on its financial statements.
“This not only impedes DOD’s financial transparency but that of the U.S. government as a whole,” the GAO said.
All government agencies should be required to pass an audit every year. A successful republic requires transparency.
