The Department of Defense received a disclaimer of opinion from its inspector general regarding its financial statements, which means the agency has yet to achieve a clean audit, according to Mike McCord, chief financial officer of the DOD.
Scope of the FY2024 DOD Financial Audit
McCord made the remarks following the release of the latest agency-wide financial statement audit, the DOD reported Sunday. The audit for fiscal year 2024 is the agency’s seventh since 2018.
The examination was carried out by the DOD Office of Inspector General and teams of independent public accountants. The work covered 28 different reporting entities, with each undergoing stand-alone financial statement audits.
Results of the Audit
Of those standalone assessments, nine entities received unmodified audit opinions, including the Defense Threat Reduction Agency, for which the achievement was a first. One reporting entity received a qualified opinion while 15 others received disclaimers of opinion.
The remaining three opinions are pending.
Despite the disclaimers, McCord expressed optimism about the DOD’s performance in the audits, saying, “I believe the department has turned a corner in its understanding of its challenges, and more importantly in addressing them.”
“Momentum is on our side, and throughout the department there is strong commitment — and belief in our ability — to achieve an unmodified audit opinion,” he added.
Cost of the Audit
The FY2024 audit is estimated to have cost the DOD about $178 million. The agency nevertheless considers the expense “a highly positive investment in transparency, accountability, and efficiency for the American people.”
