Pentagon will get failing grade in its second audit

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WASHINGTON (Information) – The Pentagon has failed a complete audit for a second 12 months, although an official mentioned it has made progress towards fixing accounting discrepancies that would nonetheless take years to resolve.

Final 12 months, Appearing Secretary of Protection Patrick Shanahan mentioned the Pentagon had failed here its first-ever complete audit, receiving an opinion of “disclaimer,” a technical time period utilized by auditors for findings that don’t meet accounting requirements.

“As anticipated, we are going to obtain an total disclaimer once more this 12 months,” Deputy Below Secretary of Protection Comptroller Elaine McCusker informed reporters on Thursday forward of the discharge of the audit end result late on Friday.

A 1990 federal regulation mandated that U.S. authorities companies be audited. Particular person Pentagon applications have undergone audits, however the Pentagon had not confronted a complete audit till final 12 months.

Protection officers and out of doors specialists have mentioned it might be years earlier than the Protection Division is ready to repair its accounting gaps and errors and go an audit.

McCusker mentioned “the audit did what we wanted and wished it to do. It examined the fixes we made, did extra in-depth critiques and supplied us with extra findings. We’re making progress.”

By means of a sequence of web site visits and samples, 1,400 auditors examined the techniques and record-keeping processes on weapons techniques, army personnel and property at some 600 websites around the globe, finishing 24 standalone audits, in addition to the general audit.

One unit, the Protection Commissary Company, improved its audit outcomes to obtain a passing grade for the primary time, McCusker mentioned.

The Pentagon mentioned it was capable of shut greater than 550 of the problems raised by auditors within the 2018 audit, or 23 p.c of the findings.

The Division of Protection has three million workers in 160 nations at greater than four,500 websites on 30 million acres of land, McCusker mentioned.

Reporting by Mike Stone; Modifying by Greg Mitchell and Dan Grebler