GAO Cannot Audit Federal Government, Cites Department Of Defense Problems

[unhappycamper]

http://www.huffingtonpost.com/2013/01/18/gao-audit-federal-government-defense_n_2507097.html



GAO Cannot Audit Federal Government, Cites Department Of Defense Problems
Luke Johnson
Ryan Grim
Posted: 01/18/2013 6:30 pm EST | Updated: 01/18/2013 7:55 pm EST

WASHINGTON -- The Government Accountability Office said Thursday that it could not complete an audit of the federal government, pointing to serious problems with the Department of Defense.

Along with the Pentagon, the GAO cited the Department of Homeland Security as having problems so significant that it was impossible for investigators to audit it. The DHS got a qualified audit for fiscal year 2012, and is seeking an unqualified audit for 2013.

The report released by the GAO on Friday indicates serious accounting problems at two of the largest government agencies: the Pentagon and the Department of Homeland Security. The Department of Defense has a net cost of $799.1 billion to the federal budget, while the Department of Homeland Security has a net cost of $48.7 billion.

"The U.S. Government Accountability Office (GAO) cannot render an opinion on the 2012 consolidated financial statements of the federal government because of widespread material internal control weaknesses, significant uncertainties, and other limitations," the agency said. "As was the case in 2011, the main obstacles to a GAO opinion on the accrual-based consolidated financial statements were: Serious financial management problems at the Department of Defense (DOD) that made its financial statements unauditable. The federal government’s inability to adequately account for and reconcile intragovernmental activity and balances between federal agencies. The federal government’s ineffective process for preparing the consolidated financial statements."

[djean111]

1. In other words, the DOD will continue to suck up more and more money with impunity.

No accountability.
And veterans' care will continue to be used as a whipping boy so it can be cut.
I would like to find out I am overly cynical on this, but reading about a brand new warship that cost over 3/4ths of a billion dollars that the DOD admits would not withstand, say, an ATTACK, makes me think I am right.

[unhappycamper]

3. 3/4 of a billion dollars for a ship ain't nothing

Zumwalt-class destroyers cost at least $5 billion dollars (we're building three of them). Hell, Aegis-class destroyers cost at least $1.8 billion before you start adding people, systems and weapons.

Virginia-class submarines cost somewhere between $5 to $7 billion dollars.

The newest aircraft carrier, the USS Gerald R Ford, will cost somewhere between $16 ~ $40 billion dollars (I'm betting on the bigger number). Nimitz-class carriers usta cost around $4.5 billion dollars sans people and aircraft. The last one of its class, the USS G.H.W. Bush, cost $6.8 billion dollars (most of the extra $2+ billion dollars was for overtime).

National Security cutters cost at least $580 million dollars.

And people wonder why our economy is in the shitter.......

[dballance]

2. If These Were Private Corps. The CEO and CFO Would Be Subject to Jail

and heavy fines. Why the hell the GAO can just throw up its hands and say "can't do it" baffles me. Take some of DoD's almost $800 billion from them and hire some forensic accounts and auditors and go at them like a buzz-saw. Of course, I know the GAO doesn't have the authority to do that probably - just wishful thinking.

[Scuba]

4. No one could have predicted that.