{"id":48370,"date":"2025-12-19T22:54:07","date_gmt":"2025-12-19T22:54:07","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2025\/12\/19\/pentagon-fails-financial-audit-for-8th-year-in-a-row\/"},"modified":"2026-08-08T16:57:00","modified_gmt":"2026-08-08T16:57:00","slug":"pentagon-fails-financial-audit-for-8th-year-in-a-row","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/pentagon\/2025\/12\/19\/pentagon-fails-financial-audit-for-8th-year-in-a-row\/","title":{"rendered":"Pentagon fails financial audit for 8th year in a row"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">The <a href=\"https:\/\/www.militarytimes.com\/congress\/2025\/12\/17\/senate-passes-major-policy-bill-authorizing-900-billion-for-pentagon\/\" target=\"_blank\" rel=\"\" title=\"https:\/\/www.militarytimes.com\/congress\/2025\/12\/17\/senate-passes-major-policy-bill-authorizing-900-billion-for-pentagon\/\">Pentagon<\/a> failed its financial audit for the eighth consecutive year, the Defense Department said Friday, highlighting the ongoing systemic challenge the nation\u2019s largest federal agency faces in fully accounting for its assets. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The <a href=\"https:\/\/www.militarytimes.com\/news\/your-military\/2025\/12\/17\/pentagon-escalates-probe-into-sen-mark-kelly-over-lawful-orders-video\/\" target=\"_blank\" rel=\"\" title=\"https:\/\/www.militarytimes.com\/news\/your-military\/2025\/12\/17\/pentagon-escalates-probe-into-sen-mark-kelly-over-lawful-orders-video\/\">department<\/a> has received a failing grade on every audit since <a href=\"https:\/\/www.militarytimes.com\/global\/asia-pacific\/2025\/12\/18\/us-preps-massive-weapons-package-for-taiwan-valued-at-over-10-billion\/\" target=\"_blank\" rel=\"\" title=\"https:\/\/www.militarytimes.com\/global\/asia-pacific\/2025\/12\/18\/us-preps-massive-weapons-package-for-taiwan-valued-at-over-10-billion\/\">Congress<\/a> mandated annual reviews beginning in 2018, and is the only one of the government\u2019s 24 major agencies never to pass. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In the <a href=\"https:\/\/comptroller.war.gov\/Portals\/45\/Documents\/afr\/fy2025\/DoD_FY25_Agency_Financial_Report.pdf\" target=\"_blank\" rel=\"\" title=\"https:\/\/comptroller.war.gov\/Portals\/45\/Documents\/afr\/fy2025\/DoD_FY25_Agency_Financial_Report.pdf\">Department of Defense Agency Financial Report for fiscal year 2025<\/a>, auditors identified 26 material weaknesses and two significant deficiencies in the department\u2019s financial reporting. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Among the shortcomings were omissions in the <a href=\"https:\/\/www.jsf.mil\/aboutus\" target=\"_blank\" rel=\"\" title=\"https:\/\/www.jsf.mil\/aboutus\">Joint Strike Fighter Program<\/a>, the Pentagon\u2019s multifaceted effort to develop an affordable strike aircraft for the Air Force, Marine Corps, Navy and allied nations. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Auditors determined the Pentagon failed to report assets in the program\u2019s Global Spares Pool, and did not accurately record the property. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe DOD could not provide or obtain accurate and reliable data to verify the existence, completeness or value of its Global Spares Pool assets for the Joint Strike Fighter Program,\u201d according to the report. \u201cAs a result, the omission of the Joint Strike Fighter Program Global Spares Pool assets resulted in a material misstatement on the Agency-Wide Financial Statements.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Defense Secretary Pete Hegseth said the department remains committed to annual financial audits and is actively conducting a comprehensive review of its budget. The Pentagon reported $4.65 trillion in assets and $4.7 trillion in liabilities, located across all 50 states and more than 40 countries.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe department cannot resolve decades of war, neglect of America\u2019s defense industrial base and soaring national debt through unchecked spending,\u201d Hegseth said in a statement released with the audit. \u201cWe are dedicated to openly sharing audit results and using them as a guide for continuous improvement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe believe this report clearly illustrates that progress and our unwavering dedication to ensuring every taxpayer dollar is used effectively and efficiently to strengthen our national defense.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The department\u2019s chief financial officer, Jules Hurst, wrote in a letter included in the report that the Pentagon aims to resolve \u201ccritical issues\u201d and achieve an \u201cunmodified\u201d audit opinion by 2028.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>DOD is the only one of the government\u2019s 24 major agencies never to 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