Follow us on social

Shutterstock_1794320848-scaled

The Pentagon fails its fifth audit in a row

If the Defense Department can't get its books straight, how can it be trusted with a budget of more than $800 billion per year?

Military Industrial Complex

Last week, the Department of Defense revealed that it had failed its fifth consecutive audit.

“I would not say that we flunked,” said DoD Comptroller Mike McCord, although his office did note that the Pentagon only managed to account for 39 percent of its $3.5 trillion in assets. “The process is important for us to do, and it is making us get better. It is not making us get better as fast as we want.”

The news came as no surprise to Pentagon watchers. After all, the U.S. military has the distinction of being the only U.S. government agency to have never passed a comprehensive audit.

But what did raise some eyebrows was the fact that DoD made almost no progress in this year’s bookkeeping: Of the 27 areas investigated, only seven earned a clean bill of financial health, which McCord described as “basically the same picture as last year.”

Given this accounting disaster, it should come as no surprise that the Pentagon has a habit of bad financial math. This is especially true when it comes to estimating the cost of weapons programs.

The Pentagon’s most famous recent boondoggle is the F-35 program, which has gone over its original budget by $165 billion to date. But examples of overruns abound: As Sens. Jim Inhofe (R-Okla.) and Jack Reed (D-RI) wrote in 2020, the lead vessel for every one of the Navy’s last eight combatant ships came in at least 10 percent over budget, leading to more than $8 billion in additional costs.

And another major overrun is poised to happen soon, according to a recent report from the Congressional Budget Office.

The Navy plans to expand its ship production in an effort to maintain an edge over China, with a particular focus on a new attack submarine and destroyer ship. The Pentagon has proposed three versions of this plan at an average cost of $27 billion per year between 2023 and 2052, a 10 percent jump from current annual shipbuilding costs.

But the CBO says this is a big underestimate. The independent agency’s math says the average annual cost of this shipbuilding initiative will be over $31 billion, meaning that the Navy is underestimating costs by $120 billion over the program’s life.

As Mark Thompson of the Project on Government Oversight recently noted, these overruns “shouldn’t come as a shock” to anyone who has paid attention to DoD acquisitions in recent years. “But it does suggest a continuing, and stunning, inability by the Navy to get its ducks, and dollars, in a row,” Thompson wrote.

So will the Pentagon manage to get its financial house in order any time soon? It’s possible, if a bit unlikely.

Despite the long odds, a bipartisan group of lawmakers led by Sen. Bernie Sanders (I-Vt.) proposed a bill last year that could help make that happen. The legislation would cut one percent off the top of the budget of any part of the Pentagon that fails an audit. That means that, if the proposal had already passed, 20 of the agency’s 27 auditing units would face a budget cut this year.

Unfortunately, momentum around that bill appears to have fizzled out, leaving the Pentagon’s accountants as the last line of defense. Per Comptroller McCord, the DoD hopes to finally pass an audit by 2027, a mere 14 years after every other agency in the U.S. government blew past that milestone. That may coincide with another historical moment, according to Andrew Lautz of the National Taxpayers Union.

“[W]e could reach a $1 trillion defense budget five years sooner [than the CBO estimates], in 2027,” Lautz wrote.

Responsible Statecraft’s independent, authentic journalism promotes democratic accountability and poses a transpartisan challenge to militaristic foreign policy! Responsible Statecraft is the online magazine of the Quincy Institute(QI). Please help us lift up new voices of realism and military restraint with your 100% tax-deductible donation to the Quincy Institute in support of Responsible Statecraft. Donate here.

gualtiero boffi/shutterstock
Military Industrial Complex
Israel-Hamas deal: Talking vs. bombing, works

A woman holds a sign as the families and supporters of hostages held in Gaza by Hamas gather to raise awareness and demand their immediate release in Tel Aviv, Israel November 22, 2023. REUTERS/Shir Torem

Israel-Hamas deal: Talking vs. bombing, works

Middle East

The agreement reached today between Israel and Hamas — and brokered by Qatar and Egypt — is an important first step that will hopefully give all sides an opportunity to step back from the precipice of a larger regional conflagration, and to consider options for ending this war other than by the military destruction of one another.

The return of the hostages to Israel in exchange for the return of Palestinian prisoners is welcome news and hopefully will proceed through subsequent cycles until all the hostages have been returned. The exchange proves that solutions can only be found through diplomacy through the help of actors in the region who can talk to all sides, in this case, Qatar and Egypt.

keep readingShow less
US strikes in Iraq show risk of escalation to wider war
Photo credit: Marines disembark from a V-22 Osprey at Al Asad Air Base in Iraq in 2018 (Cpl. Jered T. Stone/ Marine Corps)

US strikes in Iraq show risk of escalation to wider war

QiOSK

The United States has conducted two retaliatory airstrikes against Iraqi militias this week after ballistic missile attacks against America’s Al Asad Air Base, the latest in a troubling tit-for-tat between the U.S. and Iran-backed militias in the region that was triggered by the Israel-Hamas conflict.

CENTCOM appears to believe that the status quo of attack and reprisal with Iraqi militias is sustainable. There’s an assumption that Washington, Iran, and Iraq’s militias understand each other’s red lines. However, this assumption comes with a lot of risks.

keep readingShow less
JFK: A man on the brink of revelation

JFK: A man on the brink of revelation

QiOSK

Sixty years ago today, President John F. Kennedy was assassinated in Dallas, Texas.

According to his biographer, Arthur Schlesinger, Kennedy’s thinking had evolved in the year before his killing. In an obituary in The Saturday Evening Post on December 14, 1963, Schlesinger said this about the president in those last months:

keep readingShow less

Israel-Gaza Crisis

Latest