The audit, a colossal task considering the department's $3.8 trillion in assets and $4 trillion in liabilities, resulted in a "disclaimer of opinion," signifying a lack of sufficient financial data for auditors to form an opinion. The Pentagon has been unable to provide a comprehensive audit, maintaining its status as the only U.S. government agency with such a record.
The result did not come as a surprise as the DOD's assets are vast and decentralized covering 50 states and more than 4,500 sites around the world.
Pentagon Comptroller Michael McCord acknowledged the immense challenge of auditing the department's vast financial holdings.
"Auditing the department’s $3.8 trillion in assets and $4 trillion in assets and another $4 trillion in liabilities is a massive undertaking. The process cost approximately $187 million to conduct," he said. "But the improvements and changes we are making every day as a result of these audits positively affect every soldier, sailor, airman, Marine, guardian and DOD civilians.”
McCord pointed to three areas of progress.
The first is the movement toward a resolved fund balance with the Treasury Department to help prevent fraud. The second is the increasing use of automated programs, or bots, for rote tasks, freeing up accountants' time for more important work. Lastly, since Russia invaded Ukraine in early 2022, the DOD has put a magnifying glass on its stockpiles while offering support.
Audit issues underscore the Pentagon's internal financial control woes
In 2022, the Pentagon could only account for 39 percent of its $3.5 trillion in assets. This failure underscores persistent issues with internal financial control, including inaccurate budget estimates and widespread overspending in the war department. (Related: Pentagon demands $842B budget as America prepares for war against China.)
One notable example is the F-35 program, which has exceeded its initial budget by $165 billion. Despite its substantial cost, the F-35 faces criticism for its inability to perform its designated tasks effectively.
The Pentagon plans to acquire over 2,400 F-35s for the Air Force, Marines and Navy, with an estimated lifetime cost of $1.7 trillion, making it the most expensive weapons project in Pentagon history.
A 2021 assessment of the F-35 revealed 800 unresolved defects, showcasing the program's challenges.
Additionally, there are concerns about the Pentagon's shipbuilding initiative aimed at preparing for potential conflicts with China.
While the Pentagon estimates an average annual cost of $27 billion between 2023 and 2052, the Congressional Budget Office argues that the true cost will exceed $31 billion, underlining potential underestimations by the Navy.
In 2019 alone, the Pentagon made $35 trillion in accounting adjustments, surpassing the entire U.S. economy's size.
The Pentagon budget, rife with waste, includes overcharges for spare parts, dysfunctional weapons systems and prolonged military engagements with extensive human and economic consequences.
Despite these challenges, major U.S. defense contractors like Lockheed Martin, Raytheon, Boeing and Northrop Grumman continue to profit.
The defense budget, projected to reach $1 trillion by 2027, has expanded due to geopolitical events such as the Ukraine-Russia conflict and the Gaza conflict.
President Joe Biden's recent request for $106 billion in supplemental funding, including substantial support for the Department of Defense, further contributes to the escalating defense budget.
This substantial budget increase occurs as the U.S. grapples with a soaring deficit, exceeding $33 trillion, attributed to increased government spending and higher interest payments.
The Federal Reserve's aggressive interest rate hikes aim to combat inflation resulting from stimulus measures during the Wuhan coronavirus (COVID-19) lockdowns in 2020 and 2021.
Watch this clip discussing the truth about the U.S. military.
This video is from the channel The Prisoner on Brighteon.com.
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