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'Humiliated': Pentagon fails 7th audit in a row

'Humiliated': Pentagon fails 7th audit in a row

The DOD has never passed the fiscal test, but has plenty of excuses as to why.

Reporting | QiOSK

Unable to account for the entirety of its more than $824 billion budget, the Pentagon has failed its seventh consecutive annual budget audit.

Technically, the Pentagon received a disclaimer of opinion, meaning it failed to provide auditors with sufficient data. Of the 28 reporting entities undergoing audits, 9 received an “unmodified” audit opinion, or a clean audit, 15 received disclaimers and thus did not pass, and another three are pending a final decision.

A final entity received a “qualified opinion,” meaning auditors claimed budget misstatements or omissions were present, but that the finances presented were still generally reliable.

Pentagon officials claim progress on budget transparency issues and aim to achieve a clean audit in 2028, as required by the 2024 National Defense Authorization Act. Indeed, Under Secretary of Defense (Comptroller) and Chief Financial Officer Michael McCord stressed that the Defense Department “has turned a corner in its understanding of the depth and breadth of its [financial] challenges,” despite the disclaimer of opinion received.

"The Department continues to need the sustained investment, senior leadership commitment, and the support of our partners in Congress, federal regulators, the audit community, and our military and civilian personnel to accomplish its audit goals," McCord said. “An unmodified audit opinion has always been the Department's primary financial management goal, and with their help, I know it is achievable."

Others aren’t convinced. “Our Pentagon can’t 'fully account' for a budget that’s worth over $824 billion after they fail their 7th consecutive audit,” Tennessee Congressman Tim Burchett wrote on X. “They should be humiliated.”

Critically, the Pentagon, which only became legally obligated to complete audits in 2018, has never passed one. Furthermore, it was unable to sufficiently document 63% of its almost $4 trillion in assets last year. And yet, the chronically runaway Pentagon budget is only slated to grow. Namely, the 2025 defense budget’s expected to sit at just over $833 billion, which, while less than the originally proposed $849.8 billion budget, is still about $8.6 billion more than the current one.

Zooming out, U.S. involvement in conflicts overseas has only escalated as war continues in Ukraine and deepens in the Middle East. Ultimately, these conditions do little to promote or reflect defense budget accountability or restraint.


Top photo credit: An aerial view of the Pentagon, in Washington, District of Columbia. (TSGT ANGELA STAFFORD, USAF/public domain)
Reporting | QiOSK
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