The Pentagon appears to be missing hundreds of millions of dollars.
The Pentagon appears to be missing hundreds of millions of dollars.
Politico reports that Ernst & Young recently performed an independent audit of the Defense Logistics Agency and found that there's apparently no way to account for roughly $800 million in construction spending. It was also determined that the financial management of the department, which serves as the purchasing agent for the Pentagon, seems to lack the means and methods required to accurately track the massive expenditures it handles. The DLA employs about 25,000 people, and that staff is tasked with processing approximately 100,000 spending requests per day, according to Politico. In a statement released after the audit, the agency noted it is "first of its size and complexity in the Department of Defense to undergo an audit so we did not anticipate achieving a 'clean' audit opinion in the initial cycles."
DLA also said it will be using the audits to craft "corrective action plans." That is similar to the plan of action the Under Secretary of Defense (Comptroller/Chief Financial Officer), David Norquist, described during an August interview with Defense News. He characterized the audit as a "great opportunity," and said, "Part of my goal is pushing the audit forward so we can get those findings, and then using that process to help drive change." Future plans aside, the missing money revelation comes as the Trump administration is reportedly pressing lawmakers to stretch the military's defense budget beyond the limitations set in existing law. It is seeking a defense spending allowance of $716 billion for fiscal year 2019, notes The Hill.
