The Defense Department’s Inspector General found that the U.S. Army made 6.5 Trillion in Adjustments to its 2015 accounting entries to make it look as if their books were balanced. These types of accounting discrepancy have existed for many decades, and although they have tried many times to upgrade to new accounting software and processes, they still fall short of reasonable accountability.
Military commanders have even admitted that it is hard to allocate resources and funding for operations because they don’t know how much money they really have.
Many of the errors derived from purchases with no receipts to show for the items purchased, which army officials admit is one of the reasons it is so difficult to account for the missing items. Other reasons for the inability to accurately account for the funds are from Accountants inability to catch the discrepancies as well as software malfunctions in programming.
If the accounting wasn’t bad enough, the Department of Defense has lost Billions of dollars worth of assets: $500 million in weapons lost in Yemen; $300 Million dollars unaccounted for Afghanistan reconstruction; $80 Million in failed R&D research for Armoured Suits; $1 Billion in received damaged aircraft; and the list goes on.
Congress has stepped in to make the Army accountable for its poor bookkeeping and set a September 30th Deadline to prepare for an audit, but it is doubtful, with the significant accounting problems that burden the Army, that it probably won’t be ready.