{"id":35020,"date":"2018-11-15T17:04:22","date_gmt":"2018-11-15T17:04:22","guid":{"rendered":"https:\/\/one.sightlinemg.com\/c4isrnet\/uncategorized\/2018\/11\/15\/the-pentagon-failed-its-audit-but-officials-arent-surprised\/"},"modified":"2026-08-08T00:10:13","modified_gmt":"2026-08-08T00:10:13","slug":"the-pentagon-failed-its-audit-but-officials-arent-surprised","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/c4isrnet\/it-networks\/2018\/11\/15\/the-pentagon-failed-its-audit-but-officials-arent-surprised\/","title":{"rendered":"The Pentagon failed its audit, but officials aren\u2019t surprised"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">WASHINGTON \u2014 The U.S. Department of Defense \u201cfailed\u201d its first-ever audit, expected to be released Thursday, according to its No. 2 official.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But Deputy Secretary of Defense <a href=\"https:\/\/www.defensenews.com\/interviews\/2018\/11\/12\/pentagons-no-2-explains-his-lack-of-satisfaction-with-the-f-35\/\" target=_blank>Patrick Shanahan<\/a> isn\u2019t surprised at the result, saying it was widely expected the audit would find issues. The audit, concluded through the DoD\u2019s Office of Inspector General, has long been sought by lawmakers and good-government groups.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe never thought we were going to pass an audit, right? Everyone was betting against us that we wouldn\u2019t even do the audit,\u201d Shanahan told reporters Thursday at the Pentagon.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.defensenews.com\/pentagon\/2018\/11\/15\/heres-what-the-pentagons-first-ever-audit-found\/\" target=_blank><b>CLICK HERE FOR MORE DETAILS ABOUT WHAT THE AUDIT FOUND<\/b><\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cSome of the compliance issues are irritating to me because the point of the audit is to drive better discipline in our compliance with our management systems and our procedures,\u201d he added. \u201cSome of those things frustrated me because we have a job to do and just have to follow our procedures.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Among those issues are what Shanahan called \u201cinventory accuracy,\u201d or issues where the central database at the Pentagon identified inventory that simply wasn\u2019t there in the real world. He also hit on the need to be \u201cbetter\u201d at cybersecurity compliance and discipline.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The audit officially <a href=\"https:\/\/www.defensenews.com\/home\/2017\/12\/12\/dod-launches-long-awaited-audit\/\" target=\"_blank\">launched last December<\/a>, much to the relief of <a href=\"https:\/\/www.defensenews.com\/congress\/2018\/03\/07\/corker-if-pentagon-can-turn-entire-countries-into-craters-why-cant-it-audit-itself\/\" target=\"_blank\">long-annoyed members of Congress<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A 1990 law passed by Congress required audits for all government agencies. But the Pentagon has been the sole holdout, with leadership across several administrations arguing the building is too large and has too many systems that don\u2019t link up, to give any kind of helpful result that would be worth the cost.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/defensenews\/outlook\/2017\/12\/11\/pentagon-comptroller-using-the-audit-to-drive-change\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"168\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/Norquist-Cropped.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Pentagon comptroller: Using the audit to drive change<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">Accountability is what will drive us \u2014 getting the maximum value from every dollar entrusted to us. But auditing the Department of Defense is not a small matter.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">However, the Trump administration made auditing the Pentagon one of its early goals. Hiring David Norquist as the department\u2019s chief financial officer and comptroller, a decade after he completed the first-ever audit of the Department of Homeland Security, was seen as a step in the right direction.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Norquist told Defense News in late 2017 that the audit would greatly benefit the department, but not only through financial results \u2014 he expected to see new reams of data emerge from the process.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cAs you make progress on the audit and get more reliable financial information, there are cool things you can do with data analytics,\u201d Norquist <a href=\"https:\/\/www.defensenews.com\/interviews\/2017\/08\/28\/interview-david-norquist-pentagon-comptrollercfo-sets-sights-on-2019\/\" target=_blank>said then<\/a>. \u201cYou use data analytics to analyze databases to find trends and patterns. If it\u2019s reliable, then you can use that to drive a lot of changes.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Speaking more recently, Norquist added that auditors are <a href=\"https:\/\/www.defensenews.com\/pentagon\/2018\/10\/29\/pentagons-big-audit-will-inspect-for-cybersecurity-flaws-comptroller-says\/\" target=_blank>looking at cybersecurity flaws<\/a> in the department\u2019s IT systems.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Asked whether he was concerned about public reaction to the audit failure, Shanahan encouraged the focus to be on the fact that an audit of a $2.7 trillion organization could even be completed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIf I\u2019m a taxpayer, what I want to see is: \u2018You did the audit, you have all these findings. How long is it going to take for you to fix those?\u2019&#8221; he said. &#8220;Then show me next year it takes less to audit and you have fewer findings.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>After years of delays, the Pentagon has completed its first-ever audit.<\/p>\n","protected":false},"author":7,"featured_media":35639,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":16,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[106,29,16,32],"tags":[],"coauthors":[3222],"class_list":["post-35020","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-brief","category-home","category-it-networks","category-newsletters"],"acf":{"subheadline":"","legacy_arc_id":"3A6WA7LUTZHEVGRIN34VHAO2XY","arc_canonical_url":"\/pentagon\/2018\/11\/15\/the-pentagon-failed-its-audit-but-officials-arent-surprised\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The Pentagon failed its audit, but officials aren\u2019t surprised - C4ISRNet<\/title>\n<meta name=\"description\" content=\"After years of delays, the Pentagon has completed its first-ever audit.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/one.sightlinemg.com\/defensenews\/pentagon\/2018\/11\/15\/the-pentagon-failed-its-audit-but-officials-arent-surprised\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Pentagon failed its audit, but officials aren\u2019t surprised\" \/>\n<meta property=\"og:description\" content=\"After years of delays, the Pentagon has completed its first-ever 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