Uncontrollable -- Pentagon and Corporate Contractors Too Big to Audit
http://www.huffingtonpost.com/ralph-nader/uncontrollablepentagon-an_b_9499050.html?utm_hp_ref=politicsUncontrollable -- Pentagon and Corporate Contractors Too Big to Audit
Ralph Nader
03/18/2016 12:27 pm ET | Updated 1 day ago
The Reuters report put this colossal dereliction simply: "A law in effect since 1992 requires annual audits of all federal agencies--and the Pentagon alone has never complied."
All $585 billion and more, e.g., for the Afghanistan and Iraq conflicts, of your money--not just unaudited, but, in the sober judgment of the Government Accountability Office (GAO) of the Congress, this vast military budget is year after year UNAUDITABLE. That means that the Congressional auditors cannot obtain the basic accounting data to do their job on your behalf.
Auditing the Department of Defense receives left/right support, from Senator Bernie Sanders (Dem. VT) to Senator Ted Cruz (Rep. TX).
H.R. 942, the "Audit the Pentagon Act of 2014," is supported by both Democrats and Republicans in the House of Representatives. In the statement announcing this legislation, the sponsors declared "The Treasury Department's Financial Report of the US Government for fiscal year 2012 shows the DOD yet again has nothing to audit--its books are a mess. In the last dozen years, the Pentagon has broken every promise to Congress about when DOD would pass an audit. Meanwhile, Congress doubled Pentagon spending."
Hiraeth
(4,805 posts)gregcrawford
(2,382 posts)... those who will slither out from under their rocks to spew invective just to hear their heads ratttle, but Nader is not expressing an opinion, he's just reporting facts that are available to anyone.
Eisenhower warned us, but nobody listened; there was too much money to be made by sending our sons and daughters to die for a lie, again, and again, and again...
DetlefK
(16,423 posts)Step 1: Cap the salary of everybody at the DoD (EACH AND EVERYBODY) at let's say $80,000 a year. All bonuses or otherwise additional payments of course already included in those $80,000.
Step 2: Freeze the salaries into place. The DoD does not have the authority to change the salaries (including bonuses and other additional payments) of anybody for any reason until a successful audit has been completed, submitted to the appropriate authorities and accepted by those authorities.
When the yearly salary of Generals goes down to $80,000 from $180,000 a year, let's see if somebody gets motivated to get the DoD auditable.
https://www.military-ranks.org/army/general-pay
nitpicker
(7,153 posts)(snip)
GAO found the following:
Certain material weaknesses in internal control over financial reporting and other limitations on the scope of its work resulted in conditions that prevented GAO from expressing an opinion on the accrual-based consolidated financial statements as of and for the fiscal years ended September 30, 2015, and 2014. About 34 percent of the federal governments reported total assets as of September 30, 2015, and approximately 19 percent of the federal governments reported net cost for fiscal year 2015 relate to three Chief Financial Officers Act agenciesthe Department of Defense (DOD), the Department of Housing and Urban Development, and the U.S. Department of Agriculturethat received disclaimers of opinion on their fiscal year 2015 financial statements.
Significant uncertainties (discussed in Note 23 to the consolidated financial statements), primarily related to the achievement of projected reductions in Medicare cost growth, and a material weakness in internal control over financial reporting, prevented GAO from expressing an opinion on the sustainability financial statements, which consist of the 2015 Statement of Long-Term Fiscal Projections (a new comprehensive basic financial statement that provides information on the federal governments long-term financial condition); the 2015, 2014, 2013, 2012, and 2011 Statements of Social Insurance; and the 2015 and 2014 Statements of Changes in Social Insurance Amounts. About $27.9 trillion, or 67.0 percent, of the reported total present value of future expenditures in excess of future revenue presented in the 2015 Statement of Social Insurance relates to Medicare programs reported in the Department of Health and Human Services 2015 Statement of Social Insurance, which received a disclaimer of opinion.
(snip)
Three major impediments continued to prevent GAO from rendering an opinion on the federal governments accrual-based consolidated financial statements: (1) serious financial management problems at DOD that prevented its financial statements from being auditable, (2) the federal governments inability to adequately account for and reconcile intragovernmental activity and balances between federal entities, and (3) the federal governments ineffective process for preparing the consolidated financial statements. Efforts are under way to resolve these issues, but strong and sustained commitment by DOD and other federal entities, as well as continued leadership by the Department of the Treasury (Treasury) and the Office of Management and Budget (OMB), are necessary to implement needed improvements.
(snip)
While the near-term outlook has improved, the comprehensive long-term fiscal projections presented in the Statement of Long-Term Fiscal Projections, and related information in Note 24 and in the unaudited Required Supplementary Information section of the Fiscal Year 2015 Financial Report of the United States Government, show that absent policy changes, the federal government continues to face an unsustainable long-term fiscal path.
(snip)
nitpicker
(7,153 posts)1. Ashton "Ash" Carter is now the Secretary of Defense.
2. All Congressional bills that did not pass both houses at the end of that congressional session die: thus H.R. 942 of that session expired when the new Congressional session began in early 2015. And any bill introduced since then will expire in early January 2017 if not passed and presented to the President.