Pentagon’s first-ever audit fails, no evidence of fraud or abuse
ABILENE, Texas —
Earlier this month, the Pentagon failed its first-ever audit, but that is not coming as a surprise to U.S. Congressman Mike Conaway.
Conaway told KTXS News that he expected it to fail because the system is not set up to be audited.
Here is what KTXS News found out about the audit of the Pentagon.
Approximately $400 million was spent on the Pentagon audit.
600 Department of Defense organizations were visited for the audit.
Of those 600 Department of Defense organizations, auditors sent over 40,000 requests for documentation and tested over 90,000 sample items.
Conaway has been working on the audit for nearly eight years and he said that he is not shocked that the audit failed.
"The first one was always going to be the hardest. They now have a road map of what's left to be done to get to that clean opinion," Conaway said.
Conaway said that the Department of Defense is the largest spender in the federal government with operations around the world and auditing a system that large is always going to be tough.
"I understand more than most of them on the hill just how much work has gone into getting us to this point. Just the dedication of men and women in uniform, the civilians, contractors and others that have been working toward this constantly for the last eight years or so to make this happen," Conaway said.
Because of the audit, over 2,000 Notice of Findings and recommendations were issued to let the organizations know what needs to be fixed.
The Department of Defense’s Office of the Inspector General shared some of the areas of weakness.
Those areas of weakness include:
-IT weaknesses, such as inadequate controls over access, system changes and security management of the IT systems
-Insufficient systems and controls to provide assurance on the existence, completeness and valuation of property and equipment
-Incomplete universe of transactions (for example, one DoD Component could not provide a detailed list of equipment for auditors to test)
-Corrective action plans that had not been developed to address material weaknesses
The Department of Defense shared that there is no evidence of fraud or abuse.
The audit of the Pentagon will be a yearly audit and it is expected to not cost as much to conduct in the future with the Department of Defense improving its business systems and financial systems.