For the seventh year in a row, the Department of Defense (DOD) has failed its annual financial statement audit, a massive undertaking meant to ensure accountability for its $3.8 trillion in assets and $4 trillion in liabilities.
Despite the setback, Pentagon officials highlighted incremental progress and reaffirmed their commitment to securing a clean audit opinion by 2028.
The latest results, released on Nov. 15, confirmed that the DOD, once again received a disclaimer of opinion, meaning auditors could not provide assurance over the completeness and accuracy of the Pentagon’s financial records.
This year’s audit, like the six before it, exposed persistent challenges in the DOD’s financial management systems.
Teams of auditors conducted hundreds of site visits, assessing how the DOD manages taxpayer dollars across its operations, which span more than 4,000 sites in more than 160 countries.
Of the 28 sub-audits conducted across Pentagon entities that undergo standalone financial statement audits, only nine received unmodified (clean) opinions. Another entity received a qualified opinion, while 15 entities were issued disclaimers. Three audit opinions remain pending.
Secretary of Defense Lloyd Austin said that, while some progress was made in this year’s annual audit, challenges remain.
Hellbound and Down 