Pentagon fails 7th audit in a row but says progress made

SUMMARY

The Pentagon has failed its seventh consecutive audit, unable to fully account for its $824 billion budget. Despite the setback, officials, including Under Secretary of Defense Comptroller Michael McCord, claim progress is being made, aiming for a clean audit by 2028 as mandated by the National Defense Authorization Act. The Defense Department received a "disclaimer of opinion," reflecting insufficient data for a conclusive financial review. Of 28 audited entities, nine achieved clean audits, while 15 received disclaimers. Agencies like the Defense Commissary Agency and Military Retirement Fund were commended for accurate financial reporting. Efforts to modernize financial systems and enhance interoperability continue, with McCord expressing confidence in maintaining bipartisan strategies across administrations. This year’s audit cost $178 million and involved 1,700 auditors.