Pentagon Struggles with Financial Audits, Aims for Improvement by 2028
The Pentagon has failed its annual audit for the seventh consecutive year, though it reports incremental improvements in financial management. The audit, which examined $4.1 trillion in assets and $4.3 trillion in liabilities, resulted in nine entities receiving a clean audit opinion, one receiving a qualified opinion, and 15 receiving failing grades. The Department of Defense aims to achieve a clean audit by 2028, but challenges remain, particularly in accounting for material items. The DoD Inspector General has highlighted issues such as inadequate financial controls and outdated systems.