The United States Army's finances are so jumbled it had to make trillions of dollars of improper accounting adjustments to create an illusion that its books are balanced. The Defense Department's Inspector General ... said the Army made $2.8 trillion in wrongful adjustments to accounting entries in one quarter alone in 2015, and $6.5 trillion for the year. The amounts dwarf the Defense Department's entire budget. The forced" adjustments rendered the statements useless because "DoD and Army managers could not rely on the data in their accounting systems when making management and resource decisions." [This] is the latest example of the severe accounting problems plaguing the Defense Department for decades. As a result, there has been no way to know how the Defense Department - far and away the biggest chunk of Congress' annual budget - spends the public's money. "Where is the money going? Nobody knows," said Franklin Spinney, a retired military analyst for the Pentagon. For years, the Inspector General - the Defense Department's official auditor - has inserted a disclaimer on all military annual reports. The accounting is so unreliable that "the basic financial statements may have undetected misstatements that are both material and pervasive." DFAS [Defense Finance and Accounting Services] also could not make accurate year-end Army financial statements because more than 16,000 financial data files had vanished from its computer system.
Latest
Latest News
Each news summary is created according to strict standards. Here's how we do it.
Each summary is created using a consistent editorial procedure. The target length is approximately 16 lines of 11-point Arial text in a 650-pixel-wide column. Up to 25% of a summary may be set in bold to emphasize the most important ideas. Summaries are composed of verbatim excerpts presented in the same sequence as they appear in the original news source, with very minor editorial additions. Where material has been omitted between excerpts, the omission is indicated with ellipses (...). Any words added by an editor for clarity or context appear in [brackets]. Our original news editor was Fred Burks. Tod Fletcher edited most summaries from 2007 through 2014, and Mark Bailey has served as news editor since 2014.