Department of Defense struggles with financial audit failure for over three decades
- The Department of Defense has not received a clean audit opinion since the CFO Act was enacted in 1990.
- Recent investigations have uncovered significant financial discrepancies and led to settlements with major suppliers.
- There is an ongoing push for the DoD to improve financial accountability by the mandated deadline of 2028.
In the United States, the Department of Defense (DoD) has not been able to provide a clean financial audit since audits became mandatory under the CFO Act in 1990. For 33 years, the DoD has continually failed to account for and report its financial activities accurately, leading to concerns over its financial transparency and accountability. As of now, it is estimated that the DoD holds assets worth approximately $3.8 trillion, ranking it among the largest entities in the U.S., surpassed only by JPMorgan/Chase. The urgency for accountability has heightened due to the recent settlements involving Raytheon and Dell, which have raised questions about financial integrity in government contracting. The DoD is under increasing pressure not only to improve its financial governance but also to comply with the mandates imposed by the National Defense Authorization Act, aiming for an unmodified audit opinion by 2028.