Budget Uncertainty Complicates DoD’s Audit Efforts
January 23, 2013
The Defense Department’s quest to get its financial books in order by 2017 is running into trouble.
Prolonged budget uncertainty, the threat of steep spending cuts, the failure of some financial system upgrades and a leadership shakeup at the Pentagon are complicating a complex, years-long effort to produce auditable annual financial statements for the Defense Department.
In September, Pentagon Comptroller Robert Hale complained at a congressional hearing that dealing with chronic budget uncertainty was sapping time that could be spent on audit readiness and other priorities. Like other agencies, DoD continues to face the threat of deep, across-the-board budget cuts now set to take effect at the beginning of March.
And the Pentagon has run into serious delays in fielding automated business systems essential to meeting the audit readiness goals.