Corrupt Pentagon Has Never Passed a Single Audit
|January 9, 2007||Posted by Staff under Archive, Progress Report, The Progress Report|
Military Failure Rate is 100%
Taxpayers for Common Sense is the best organization that monitors excessive government spending. Here is their latest news update.
WHY CAN’T THE PENTAGON PASS AN AUDIT? The Pentagons accounting records are so convoluted and corrupt that billions of dollars cannot be accounted for, charges a new government report.
In fact, no major part of the Department of Defense (DOD) has ever passed an audit, according to recent congressional testimony by the non-partisan U.S. General Accounting Office (GAO), the investigative arm of Congress.
The Pentagon admitted that flawed business systems and practices are common within the agency and said it would take “decades” to get all of the agency books in order.
Accounting problems led the GAO in 1995 to put DOD financial management on GAOs list of agencies that are at high-risk of waste, fraud, abuse, and mismanagement.
Some of the GAOs findings are astonishing:
- About 58 percent of the material the Pentagon possesses ($36.9 billion worth) are items it does not need.
- Over the past three years, the Navy lost track of $3 billion in equipment and other items.
- At one distribution center for the Navy, there was a backlog of over 122,000 items that had not been properly processed, leading the Navy to purchase items it didnt need.
- The $600 billion Pentagon inventory of weapons systems and other items failed to include nearly $6 billion in Army communications defense equipment, $7.6 billion in Navy aircraft engines and about $7 billion in Air Force electronic pods that attach to warplanes.
The GAO testimony follows a March report by the office of the Defense Departments Inspector General that concluded that the Pentagons books were in such disarray that they couldnt be audited.
In fact, the Pentagons books are in such poor shape that the militarys money managers last year made almost $7 trillion in adjustments to their financial ledgers in an attempt in make them add up.
The Inspector General also concluded the Pentagon could not show receipts for $2.3 trillion of those changes and half a trillion dollars of the adjustments were corrections of earlier mistakes.
The Pentagon is not alone: Only 11 of 24 big federal agencies could produce reliable financial statements for last fiscal year.
Individual taxpayers must be prepared to pass an audit. There are no exceptions. Failure can lead to fines or even prison. It is high time Congress demanded the same level of accountability from the Pentagon and other high-risk agencies.
For more information, contact Keith Ashdown at (202) 546-8500 x110 or e-mail email@example.com ; TCS is at www.taxpayer.net
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