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7th Consecutive Audit Failure

Pentagon failed its 2024 audit - unable to account for $824 billion budget. Next audit deadline: 2028

Department of Defense

America's largest government agency providing military forces to deter war and ensure national security

$961.6B
FY 2026 Budget Request
2M+
Uniformed Personnel
6
Military Branches
7
Audit Failures

Current Leadership

Key officials leading the Department of Defense under the Trump Administration

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Pete Hegseth
Secretary of Defense
January 25, 2025 - Present

Former Fox News host and Army veteran. Facing scrutiny over security breaches and staff turnover.

DS
Deputy Secretary
Deputy Secretary of Defense
Position vacant

Second-highest ranking Pentagon official, responsible for day-to-day operations

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Michael McCord
Under Secretary & CFO
Continuing in role

Chief Financial Officer overseeing the troubled audit process and financial management

Financial Accountability Crisis

Pentagon's ongoing inability to pass financial audits

7
Consecutive Audit Failures
63%
Unaccounted Assets
$178M
Audit Cost (2024)
2028
Deadline for Clean Audit

2024 Audit Results Breakdown

Detailed results from the Pentagon's latest failed audit

Entity Audit Result Status
U.S. Army Corps of Engineers Unmodified Opinion Passed
Military Retirement Fund Unmodified Opinion Passed
Defense Finance and Accounting Service Unmodified Opinion Passed
Special Operations Command Unmodified Opinion Passed
Defense Threat Reduction Agency Unmodified Opinion Passed
Defense Health Agency Unmodified Opinion Passed
Defense Security Service Unmodified Opinion Passed
Missile Defense Agency Unmodified Opinion Passed
Defense Contract Management Agency Unmodified Opinion Passed
One Entity (Undisclosed) Qualified Opinion Qualified
Army, Navy, Air Force, Space Force Disclaimer of Opinion Failed
Defense Logistics Agency Disclaimer of Opinion Failed
Defense Information Systems Agency Disclaimer of Opinion Failed
15 Additional Entities Disclaimer of Opinion Failed

Success Rate: 32% (9 out of 28 entities received clean opinions)

Military Service Branches

Six branches of the U.S. Armed Forces under Pentagon oversight

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U.S. Army
943,100 Personnel (FY25)
Land-based military operations, combat forces, and territorial defense
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U.S. Navy
390,000 Personnel (FY25)
Naval operations, sea control, and maritime security worldwide
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U.S. Air Force
494,700 Personnel (FY25)
Air superiority, strategic bombing, and aerial reconnaissance operations
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U.S. Space Force
9,800 Personnel (FY25)
Space operations, satellite defense, and space-based military capabilities
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U.S. Marine Corps
204,800 Personnel (FY25)
Expeditionary warfare, amphibious operations, and rapid response forces
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U.S. Coast Guard
Under DHS (Wartime DOD)
Maritime law enforcement, search and rescue, and homeland security

Pentagon Audit History

Nov 2024
7th Consecutive Audit Failure
Pentagon fails to account for $824 billion budget. Only 9 of 28 entities received clean opinions. Cost: $178 million.
2023
6th Audit Failure
Continued inability to account for 63% of $3.8 trillion in assets. Archaic financial management systems cited.
2022
5th Audit Failure
Unable to account for 61% of $3.5 trillion in assets. Congressional pressure mounts.
2021
NDAA 2028 Deadline Set
Congress mandates Pentagon must achieve clean audit by end of 2028 or face consequences.
2018
First-Ever Pentagon Audit
Pentagon begins mandatory annual audits. Immediate failure to account for spending and assets.
1995
GAO High-Risk Designation
Government Accountability Office places DOD financial management on high-risk list for waste, fraud, and mismanagement.
1990
CFO Act Requirement
Federal law requires all executive branch agencies to prepare auditable financial statements.

Current Pentagon Controversies

Recent issues affecting Pentagon operations and accountability

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Security Breaches
Secretary Hegseth under fire for sharing sensitive military attack plans in insecure group chats
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Staff Turnover
Five senior advisers resigned or fired amid allegations of leaks and internal conflicts
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Audit the Pentagon Act
Bipartisan legislation to reduce funding by 0.5-1% for entities that fail audits
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Sentinel ICBM Program
Nuclear missile program 80% over budget, triggering Nunn-McCurdy Act review
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Defense Industrial Base
Concerns about contractor accountability and oversight in weapons procurement
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AI Audit Solutions
Congressional proposals to use artificial intelligence to help Pentagon pass future audits

Budget & Spending Transparency

Pentagon budget overview and spending accountability

$961.6B
FY 2026 Request
$824B
FY 2024 Budget
$205B
FY 2026 Procurement
$36.9B
Unneeded Inventory

Key Issues: The Pentagon possesses $36.9 billion worth of materials it doesn't need (58% of inventory). The Navy lost track of $3 billion in equipment over three years. Financial management systems remain archaic and inadequate for modern accountability standards. Congress has given Pentagon until 2028 to achieve clean audit or face potential funding reductions and stricter oversight.