The U.S. Department of Defense (DOD) recently released the results of its seventh annual department-wide financial statement audit, which again resulted in a disclaimer of opinion, which U.S. Rep. Ken Calvert (R-CA) said was not a satisfactory outcome.
“We have a responsibility to the American taxpayer to use every defense dollar effectively to strengthen our national security,” Rep. Calvert, chairman of the U.S. House Appropriations Defense Subcommittee, said on Monday. “This seventh failure of the Department of Defense to achieve a clean audit undermines this commitment.”
According to the DOD on Nov. 15, teams of independent public accountants and the DOD Office of Inspector General closely examined the financial statements of the department and its reporting entities. Of the 28 reporting entities undergoing standalone financial statement audits, nine received an unmodified audit opinion, one received a qualified opinion, 15 received disclaimers, and three opinions remain pending.
A disclaimer of opinion is a type of modified audit report that an auditor issues when they are unable to obtain enough evidence to form an opinion on a company’s financial statements.
“Despite the disclaimer of opinion, which was expected, the department has turned a corner in its understanding of the depth and breadth of its challenges,” said Michael McCord, Under Secretary of Defense (Comptroller) and Chief Financial Officer. “Momentum is on our side, and throughout the department there is strong commitment — and belief in our ability — to achieve an unmodified audit opinion.”
But Rep. Calvert isn’t satisfied.
“I don’t want to hear about progress, I want a clean audit as soon as possible,” he said. “I will continue to push the department and military services to take seriously the responsibility to achieve a clean Pentagon audit.”
The congressman did say he appreciated the hard work of the U.S. Marine Corps, which he noted remains the only military service to achieve a clean audit opinion.