It's no surprise at all that the Defense Department has once again failed its yearly audit. Until the Pentagon tries to pioneer a new system of accounting for its vast assets and equipment — rather than continuously depending on outdated methods — it will repeat these failures year after year. Not only is the US military working with ancient auditing systems, but it's also spending more money to conduct these reviews — almost a billion dollars a year — than private companies who have no issues getting their books in order.
The Defense Department is one of the largest organizations in the world and auditing its vast web of assets and equipment across the globe is an extremely difficult undertaking. While the department received the same topline grade as last year, it continues to make incremental progress toward a clean audit. While this doesn't mean the DOD has lost its assets, the Pentagon knows that its outdated auditing systems are causing an unnecessary mess and is working toward modernizing as quickly as possible.