Linda Woodford spent the last 15 years of her career inserting phony numbers in the U.S. Department of Defense's accounts. Woodford and her fellow [accountants] set about preparing monthly reports to square the Navy's books with the U.S. Treasury's. And every month ... numbers were missing. Numbers were clearly wrong. Woodford and her colleagues were told by superiors to ... enter false numbers, commonly called plugs," to make the Navy's totals match the Treasury's. Fudging the accounts with false entries is standard operating procedure. Former military service officials say record-keeping at the operational level throughout the services is rife with made-up numbers to cover lost or missing information. Plugs also are symptomatic of one very large problem: the Pentagon's chronic failure to keep track of its money-how much it has, how much it pays out and how much is wasted or stolen. The Defense Department's 2012 budget totaled $565.8 billion, more than the annual defense budgets of the 10 next largest military spenders combined, including Russia and China. How much of that money is spent as intended is impossible to determine. The Pentagon is largely incapable of keeping track of its vast stores of weapons, ammunition and other supplies. It has amassed a backlog of more than half a trillion dollars in unaudited contracts with outside vendors. [It] also has systematically ignored warnings about its accounting practices. The Pentagon is the only federal agency that has not complied with a law that requires annual audits of all government departments. That means that the $8.5 trillion in taxpayer money doled out by Congress to the Pentagon since 1996 ... has never been accounted for. That sum exceeds the value of China's economic output last year. A single [military accounting] office in Columbus, Ohio, made at least $1.59 trillion - yes, trillion - in errors, including $538 billion in plugs.