Sanders, Grassley, and Wyden Decry Pentagon’s Wasteful Spending and Inability to Pass an Audit
Today, the Government Accountability Office (GAO) issued a report, “DOD Needs to Improve System Oversight,” commissioned by Sens. Bernie Sanders (I-Vt.), Chuck Grassley (R-Iowa), and Ron Wyden (D-Ore.).
The Department of Defense (DOD) spends billions each year to improve its accounting systems, but this investment has failed to produce better systems. These systems cannot generate reliable and complete information. They cannot even perform the most elementary task in the book: to capture and post transactions to the correct accounts. These systems do not comply with statutory requirements, and therefore DOD has remained on GAO’s high-risk list for financial management for nearly 30 years. DOD’s inability to bring these systems up to required standards is a root cause of the Pentagon’s long trail of audit failures.
The inability of the multi-trillion dollar Pentagon enterprise to account for the money it spends is unacceptable. The absence of reliable financial data and adequate internal controls leaves the door wide open to widespread waste, fraud, and abuse. That is why, for many years, Sens. Sanders, Grassley, and Wyden along with Sen. Mike Lee (R-Utah), have pushed the Audit the Pentagon Act, which would require the DOD to finally pass a full independent audit. Under the bill, each branch of the military and component of the DOD that fails to obtain a clean audit opinion would return one percent of its budget to the Treasury.
Today’s GAO report highlights continuing DOD shortcomings and renews calls for more accountability. While DOD has begun the process of migrating to new systems, its guidance for this process lacks controls to ensure their systems comply with statutory requirements. Furthermore, DOD has frequently shifted the leadership responsibilities for improving its business and financial systems, exacerbating delays. The Department’s Chief Financial Officer is accountable for failing to institute financial management systems that meet statutory requirements.
The senators commend GAO for their work and encourage DOD to heed the many proposals put forward to improve accountability and speed progress toward the legally-mandated clean audit. The senators will continue to actively examine legislative solutions to these ongoing problems.
Read the full GAO report here.
