DOD: Pentagon Audit to Cost $367M, Additional $551M to Correct Issues

Aerial View of the Pentagon. (Photo/Reuters)

January 11, 2018
OAN Newsroom

The Pentagon begins it’s first ever full-scale audit, delivering on a campaign promise made by President Trump.

Department of Defense Under Secretary David Norquist revealed the projected cost of the audit before the House Armed Services Committee on Wednesday.

He said the process could cost the DOD roughly $367 million in 2018 with about half the budget being used to pay independent accounting firms.

More than 1,000 auditors are set to review the Pentagon’s estimated $2.4 trillion in assets, which include personnel supplies and bases.

Lawmakers claim this is an important step in reducing waste and improving accountability.

Under Secretary of Defense (Comptroller) David L. Norquist. (Photo/Defense One)

“Though not a corporation, DOD owes accountability to the American people…the tax payers deserve the same level of confidence as share-holders,” said Norquist. “The DOD’s financial statements present a true and accurate position, picture of it’s financial condition and operations.”

Norquist says the department could spend up to $551 million correcting problems discovered by the auditors.

The process is expected to be completed by November 15th.

  • Merlene Fuller

    Probably less that the congress and senate “SLUSH FUND” that should not even exist! I STILL want all those “slush funds” published for the American Citizen/tax payers to see..

  • Paul

    Question: How do you allocate more for the fix than the investigation audit when you do not know the full extent of the waste and abuse? Evidently you know what issues need correcting, so why not save 367 million?

  • CHHanks

    DOD already provides accountability to the American people. It does so by submitting a budget request every year to the members of Congress, which the American people have elected to represent their interests in the running of the government. DOD ‘s annual budget request contains detailed information on every program the DOD has, including detailed information what the programs will cost expressed in the form of the obligations the DOD will make to pay for the programs.

    Anti-Deficiency Act violations at the DOD (obligating funds without having received obligation authority from the Congress to do so) average less than 3 cents for every $100 in obligations the DOD makes every year.

    Mr. Norquist, as the DOD Comptroller, understands all of the above.

    The DOD is not a private-sector corporation or business trying to make money, as Mr. Norquist points out. So why is he planning to spend almost a billion dollars of taxpayer money each year to produce private-sector-style financial statements for the DOD (i.e., balance sheets and income statements) as if it were?

    He could save a lot of money for the taxpayers by just explaining “to the American people” how the annual budgeting process works – at the DOD (and everywhere else in the federal government). The reasons he’s not going to do that (just as every other DOD Comptroller for the last 27 years has chosen not to do that) are because:
    a) it would be hard; and
    b) because the Congress is quite happy, thank you, keeping the public in the dark about what “financial accountability” means in the federal government — and they would be very angry with any civil servant in the government bold enough to try to change that.

  • aldoro

    WHY should it cost so damn much. ANOTHER example of government WASTE.

    • All American

      Must be deep if it’s going to take 11 months to get the job done!
      We should all look forward to reading the detailed auditors report.
      We are going to learn even more about the Obama Error!
      It will be worth it’s weight in gold and get US back on track!

  • Marty Kirkpatrick

    First off an audit of any government agency should not cost the taxpayers a dime..there are enough over paid bureaucratic lawyers riding the books in any dept. to handle it on their off days..put them to work earning their hefty checks pro bono… we already have paid for years to have them on the job.

    • nfcapitalist

      Good point… very good point, but then… the government doesn’t even trust itself, lol!!

  • WitchWay

    ALL Government Agencies should be open for Audit at any time. It should be a random process. Another Agency that needs to be audited is the Veterans Affairs. They have never been audited either and have managed to mismanage the health and wellbeing of Veterans from the beginning.

  • I sold some F-52s to Norway, it’s great!!
    ““In November we started delivering the first F-52s and F-35 fighter
    jets,” Trump said this week during a press conference with Norwegian
    Prime Minister Erna Solberg. “We have a total of 52 and they’ve
    delivered a number of them already a little ahead of schedule.” MAGA!

    • Oh……F-52s only exist in Call of Duty. Can we send copies of Call of Duty to Norway?

  • No Mas

    Seems you are paying an awful lot of attorneys and accountants to do what I could do in a walk through of each department, office and closet in a year.
    What we need to do is change the budget culture of the public sector!
    They spend every dollar allotted from the prior budget or it gets cut… Their goal is to SPEND THE MONEY!

    • Sure, Not

      Agreed, that’s a big part of the problem.

  • landy fincannon

    The spurious claim the the DOD is
    not a corporation is laughable.
    Everything and I mean everything is a corporation.

    Flash back. September 10 2001.
    Donald Rumsfeld announced that 2.3 trillion went un accounted for at the pentagon.
    August 18, 2016 6.5 trillion goes missing from the pentagon.
    This is going to be interesting.

  • JL Ziegler

    Completely agree with lawmakers claim that, “this is an important step in reducing waste and improving accountability.” Ultimatly not as expensive in the long run.

    Time to be accountable and translucent. Everybody’s watching. 😎

  • Slowpoke

    Does this mean that it is less expensive to let them run amok?

    • nfcapitalist

      That’s hilarious…. good post!!

  • Johnny Mountain

    How does this clown know it will take $551 Million Dollars to correct things if the audit hasn’t been done yet ? How independent are the auditors? How much access will they truly have ?

    • nfcapitalist

      Yeah… what he said.

      Seriously… auditors get $551 million because the president simplified the tax code… again, hilarious!!

  • internettoughguy

    The United States already has a military budget higher than the next nine highest military budgets in the world combined. How much more does the Freedumb Caucus think we need to spend,

    • Sheriff Bart

      The Yankees just got Stanton , and they’re still looking for more . Go for the gusto , I say. Just having a little fun on a Thursday.

  • Gary Vogt

    Ya’ll just wait till Trump orders an audit of Fanny/Freddy Mac. Talk about a black hole. DOD is just child’s play to that stuff. I am 72 and don’t EVER remember and outside audit of anything in government

    • nfcapitalist

      Audit all members of government starting with congress and ending with the dog pound.

      • internettoughguy

        Including Trump?

        • Jerri Johnson Piacentini

          EVERY BUSINESS and rX payer in Americ has Govt in their beewax…every year. Why in the hell is FIRST time audit….such a problem to you…that ya INSTANTLY point fingers at President Trump??? Ya ought to be PLEASED he is looking out for OUR money. What a jerk statement …. is why this countty is so jacked up!! Liberals. Ugh.

          • nfcapitalist

            Don’t know what you replied to because that creature is ‘This user is blocked,’ but agree with you anyway.

          • Living in the Times

            They may just be blocked on your screen but not hers. Did you block them, ever? When you block a user, it only disappears from your screen not the OAN screen for other commenters.

          • GGma

            Thx, good to know

          • Living in the Times

            No problem!

          • nfcapitalist

            I know, I know… jeesh, just a bit of a suggestion, totally roll of eyes… lol!

          • GGma

            Agree

          • scott

            ITG is a troll.

          • aldoro

            Another liberal idiot that doesn’t know ANYTHING about government. SNOWFLAKE

        • Miguelito

          They have been auditing DJT every year for 7 consecutive years. Do you think they did a shabby job with Obama in charge for 8 years. I think that may be a lot globalist.

          • I’m all set for my visit to the World Economic Forum at Davos, Switzerland!!

        • Jose Arias

          your an idiot Trump is even taking a paycheck you snow flake

      • GGma

        And previous administration!

        • nfcapitalist

          But I think we are talking about the previous administration… they’re still here in the form of unelected bureaucrats.

    • Slowpoke

      …or auditing the Fed!!

    • Sure, Not

      For years Rand Paul has been pushing to audit the Federal Reserve. There could be some scary skeletons hiding in that closet, maybe more so than Fannie/Freddy.

  • nfcapitalist

    B2 bombers and 200 support crew sent to Guam… nuclear capable?

    Look here… an F100 Super Saber from the 1960s was… nuclear capable… this mean an F18 Hornet isn’t ‘nuclear capable?’

    Maybe we do need to review the staff at the Pentagon because there should always be a swarm of fighter-bombers on ready pad stand by with Mk28 & 43s ready to annihilate our enemies.

  • Transpare

    The DOD is a black hole of taxpayer dollars. I’ll be interested to see the results of this audit.
    If they publish?

  • nfcapitalist

    Might’ve done a trial run on the Department of Justice and FBI… seeings how outside money seems to be financing some of our unlawful investigative and enforcement policies.

    • scott

      Now that’s something I would like to see done!