The Pentagon was unable to fully account for its massive $824 billion budget, marking its seventh straight audit failure. Despite this, officials expressed optimism that the department of defense "has turned a corner" in comprehending its financial hurdles.
The auditors issued a disclaimer of opinion, indicating they received insufficient data to make an accurate assessment of the accounts.
From the department of defense's (DoD) 28 standalone audited entities, 9 secured unmodified opinions, 1 received a qualified opinion, 15 were given disclaimers, whilst 3 opinions are still awaiting completion, according to FOX News.
With an aim to secure a clean audit by 2028, under secretary of defense (Comptroller) and chief financial officer Michael McCord said that the organisation "has turned a corner in its understanding of the depth and breadth of its challenges."
"Momentum is on our side, and throughout the Department there is strong commitment—and belief in our ability—to achieve an unmodified audit opinion," McCord said.
The national defense authorization act requires the achievement of an unmodified audit opinion.
During a Friday briefing, McCord disputed characterising the outcome as a failure, noting they had "about half clean opinions." "So if someone had a report card that is half good and half not good, I don't know that you call the student or the report card a failure," he remarked.
The financial statements underwent thorough examination by independent public accountants and the DoD Office of Inspector General.
McCord affirmed in his statement that the route to achieving a clean audit is well-defined. "Significant work remains and challenges lie ahead, but our annual audit continues to be a catalyst for department-wide financial management reform, resulting in greater financial integrity, transparency, and better-supported warfighters," he concluded.