(From Federal News Radio)
An assessment by the Pentagon’s inspector general has given another indication that DoD’s path to audit readiness is in serious trouble. The IG found serious deficiencies with the ways the Defense Finance and Accounting Service accumulates and reports transactions involving agencies outside the military services. Because of that, the IG said it appears “increasingly probable” that those agencies’ financial statements from prior years were misstated. The problems, in turn, will continue to call DoD’s overall financial statement into doubt until they’re fixed. Among the problems, according to the IG: DFAS doesn’t have an accurate picture of defense agencies’ financial transactions. It also lacks a clear understanding of how many divisions within each agency are supposed to be reporting those transactions.
The DoD is a total mess. This is a shock.