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WASHINGTON, Dec. 7, 2017 — The Defense Department is starting the first agencywide financial audit in its history, Pentagon officials announced today.
Defense Department Comptroller David L. Norquist and chief Pentagon spokesperson Dana W. White spoke during the Pentagon news conference, in which they also addressed the possibility of a government shutdown when the continuing resolution that has been keeping the government running expires tomorrow.
Norquist said he received the DoD Office of Inspector General's notification that the financial statement audit begins this month.
Taxpayer Confidence
The audit is massive. It will examine every aspect of the department from personnel to real property to weapons to supplies to bases. Some 2,400 auditors will fan out across the department to conduct it, Pentagon officials said.
originally posted by: Thorneblood
a reply to: Konduit
......The call for this audit began in 2009/2010 by Senator Tom Coburn who has since left due to Cancer and was mandated by Congress.
Friday, May 16th, 2014 Department of Defense (DoD) Comptroller Robert F. Hale told the Senate Committee on Homeland Security and Governmental Affairs this week that the department is “on track to achieve audit readiness for all our financial statements by 2017.”
originally posted by: Thorneblood
a reply to: WhatTheory
No, it's not......just google it instead of jumping to conclusions. Or go visit my original thread on the topic, it would have happened either way thanks in large part to this man.
originally posted by: ClovenSkyIt is amazing that they can lose more money than their entire allocated budget. I guess this farce is easy to get away with when they deal with money that is simply 0s & 1s on a monitor.
The problem of waste at the Pentagon goes back decades. DOD remains the sole federal agency that has not achieved a clean audit under the Chief Financial Officers Act of 1990. In 2010, Congress established September 2017 as the deadline for a review by independent financial auditors.
Obama signed the Budget Control Act, which "is a resurrection of a much older law, known as Gramm-Rudman-Hollings," into law on August 2, 2011, Harrison writes. The BCA placed budget caps on the federal government for a decade (ending in fiscal year 2021). And while nobody spends money on defense like the U-S of A, the BCA takes roughly $1 trillion (over a period of 10 years) away from what the president had requested for the defense budget.
As reports and news articles about waste and abuse at the Pentagon pile up, prominent voices from across the political spectrum – from Bernie Sanders to Ted Cruz to Grover Norquist – are expressing support for a full audit of DoD. In a 2013 video message to the whole of the defense department, then secretary of defense Chuck Hagel told employees that the department’s non-compliance was “unacceptable”. During this past election cycle, both the Democratic and Republican platforms called for the Pentagon’s audit.
Since the BCA was enacted, both sides have attempted to blame the other. For example, during this election season, both parties have included statements on the BCA in their party platforms. The Republican Party Platform for 2016 says, “We support lifting the budget cap for defense and reject the efforts of Democrats to hold the military’s budget hostage for their domestic agenda.” And the Democratic Party Platform for 2016 says, “We support a smart, predictable defense budget that meets the strategic challenges we face, not the arbitrary cuts that the Republican Congress enacted as part of sequestration.” In truth, the BCA passed with bipartisan majorities in both chambers. In the House,174 Republicans and 95 Democrats voted for it; in the Senate, 28 Republicans and 45 Democrats voted for it; and President Obama ultimately signed it into law. Without bipartisan support, this bill would not have become law. Both sides share responsibility for enacting the BCA—and finding a way out of it.
But despite broad support, the issue has remained stagnant in Washington. “I really can’t figure it out,” Democratic party representative for California Barbara Lee told the Guardian. When legislators get around to tackling waste, they “go after domestic agencies and community organizations, but they never go after the Pentagon,” she said. Since 2013, she has introduced bipartisan legislation that would financially penalize DoD for not receiving a clean audit. “Quite frankly, they should have been audit-ready decades ago, after Congress passed the initial audit law in the early 90s,” Republican representative for Texas Michael Burgess, co-sponsor of the Audit the Pentagon Act along with Lee, told the Guardian. People have “accepted that the Department of Defense is expensive and that that’s how business has to be done. But I don’t accept that.”
This bill establishes consequences if the Department of Defense (DOD) fails to obtain an audit with an unqualified opinion of its financial statements.
The bill provides additional authorities and flexibility if DOD obtains an audit. If DOD obtains the audit, the bill provides that the financial statements are no longer covered by specified reporting requirements.
The bill also authorizes DOD to transfer and reprogram specified funds. If DOD fails to obtains an audit for FY2016, the bill establishes additional qualifications for the Under Secretary of Defense (Comptroller) and other specified DOD financial management officials. The bill also permits the Deputy Secretary of Defense to prescribe additional duties and powers for the officials.
If DOD does not obtain an audit for FY2018, the bill: (1) cancels the transfer authority provided by this Act, (2) establishes a Chief Management Officer to be responsible for the management and administration of DOD, and (3) transfers jurisdiction of the Defense Finance and Accounting Service from DOD to the Department of the Treasury.
For failing to obtain an audit for fiscal years after FY2017, the bill cancels the reprogramming authority provided by this Act and prohibits DOD from using funds for certain weapons, weapons systems, or platforms being acquired as a major defense acquisition program. The bill requires DOD to amend acquisition guidance to place specified restrictions and limitations on the procurement of certain Enterprise Resource Planning business systems.
If DOD does not obtain an audit for FY2018, the bill: (1) cancels the transfer authority provided by this Act, (2) establishes a Chief Management Officer to be responsible for the management and administration of DOD, and (3) transfers jurisdiction of the Defense Finance and Accounting Service from DOD to the Department of the Treasury.