Pentagon fails first-ever audit, and that’s a good thing!

The Washington Examiner ^ | November 16, 2018 | Jamie McIntyre & Travis J. Tritten

[re_tail20]

FOLLOW THE MONEY: The Pentagon has done what for years seemed impossible — it dispatched more than 1,200 auditors to examine hundreds of thousands of items at over 600 locations to figure out if taxpayer money was being used wisely. And the auditors examined if systems were effective in tracking inventory and ensuring they followed proper security practices.

With approximately $2.8 trillion in total assets, accounting for over 70 percent of the U.S. government’s total, the FY 2018 DoD consolidated audit includes over 20 standalone audits. It’s arguably one of the largest and most complex financial statement audits ever undertaken.

The result: The Pentagon came up short.

“We failed the audit, but we never expected to pass it,” said Deputy Defense Secretary Patrick Shanahan yesterday in advance of the formal release of the 236-page report. But Shanahan says just completing the audit is a huge accomplishment. “Everybody was betting against us — that we wouldn't even do the audit,” he told reporters at the Pentagon. The whole point was to find the shortcomings, so they can be fixed. “We need to put corrective action. We need to develop the plans to address the findings, and actually put corrective actions in place,” he said.

HILL REACT: Both the incoming and outgoing chairmen of the House Armed Services Committee applauded the audit and called for reforms. “As expected, this audit has uncovered a number of matters that Congress and the Pentagon must work together to address,” said the current chairman, Republican Rep. Mac Thornberry of Texas. “We must take advantage of this opportunity to continue our reform efforts and make the Pentagon more efficient and agile.”

Rep. Adam Smith, who will take the committee gavel when Democrats assume control in early January, suggested the audit is a good starting point. “If we...

[17th Miss Regt]

Rep. Adam Smith: “We can eliminate 80% of the Pentagon audit problems by cutting the defense budget by 90% next year.”

[17th Miss Regt]

Oops! “80%” = “90%”

[quasimodo_79]

I think we should cut the FBI by 90%. That oughta eliminate 80% of the deep-state problem.

[Harmless Teddy Bear]

The result: The Pentagon came up short.

I am shocked.

(not really)

But I hope they do use the process to get a handle on things.

DH's company was having to make their own drift pins. He decided to check around the yard and not only found drift pin's but track pads they swore they had had on back order for six months.

I am firmly in favor of making sure the military has the things they need. To do that you need to make sure they know what they have and also make sure it does not "walk off".

[Shark24]

Sad that a failure is considered a success. From someone who worked in that system for 8 years and did not fail an audit.

[equaviator]

Area 51.1

BIG bucks but nobody knows!

[rllngrk33]

Great, now do the rest of the Fed Gov departments starting with the one’s that hand out free money.

[wally_bert]

Those were some expensive hammers and toilet seats.

[trebb]

Sad that a failure is considered a success. From someone who worked in that system for 8 years and did not fail an audit.

I worked in that system for 39 years....the audits we "passed" were all based on inherently wasteful policies....if one found a way to save money in a single year, then the money was taken away for following years...hence, the end of year spending frenzies at all military installations....

This audit was designed to show that there's better ways of doing business....