How $21 Trillion in U.S. Tax Money Disappeared. “Full Scope Audit” of the Pentagon
1 July, 2018
This is part of our series on the unaccounted for $21 Trillion in taxpayer money. As unbelievable and absurd as that sounds, the actual total of unaccounted for money at the Pentagon is most likely significantly more than $21 trillion. The First ever “full-scope audit” of the Pentagon is presently underway. Read the first report from this series here.
The financial management systems DOD has put in place to control and monitor the money flow don’t facilitate but actually “prevent DOD from collecting and reporting financial information… that is accurate, reliable, and timely.” (p. 4)
DOD frequently enters “unsupported” (i.e. imaginary) amounts in its books (p. 13) and uses those figures to make the books balance. (p. 14)
Inventory records are not reviewed and adjusted; unreliable and inaccurate data are used to report inventories, and purchases are made based on those distorted inventory reports. (p. 7)
DOD managers do not know how much money is in their accounts at the Treasury, or when they spend more than Congress appropriates to them. (p. 5)18
Nor does DOD “record, report, collect, and reconcile” funds received from other agencies or the public (p. 6),
DOD tracks neither buyer nor seller amounts when conducting transactions with other agencies. (p. 12)
“The cost and depreciation of the DOD general property, plant, and equipment are not reliably reported….” (p. 8);
“… the value of DOD property and material in the possession of contractors is not reliably reported.” (p. 9)
DOD does not know who owes it money, nor how much. (p. 10.)
“Call it irony or call it symptomatic of the department’s way of life, but an analysis by the Project on Government Oversight notes the Pentagon has so far spent roughly $6 billion on ‘fixing’ the audit problem — with no solution in sight.
If anything, the Defense Department’s accounting practices have been getting worse.”