Defense Department Fails Seventh Consecutive Audit

The Department of Defense (DoD) has failed its seventh consecutive financial audit, continuing a pattern since audits became mandatory in 2018. This year, of the 28 entities audited, only nine received unmodified opinions, while 15 received disclaimers, indicating insufficient information for a precise financial assessment. Despite the recurring audit failures, DoD officials, including Under Secretary Michael McCord and Defense Secretary Lloyd Austin, emphasize ongoing improvements and commitment towards achieving a clean audit by 2028. Progress is noted with increased unmodified opinions compared to prior years, and reforms are being implemented to enhance financial integrity and transparency. The audits, which involved around 1,700 auditors and cost $178 million, examined approximately $4.1 trillion in assets and $4.3 trillion in liabilities. Recommendations from auditors include enhanced monitoring and standardized processes to better align with accounting standards.