After DOD Fails its Seventh Financial Audit, Sessions Seeks GAO to Address Waste, Fraud, and Abuse

WASHINGTON—Subcommittee on Government Operations and the Federal Workforce Chairman Pete Sessions (R-Texas) is requesting the U.S. Government Accountability Office (GAO) continue to support efforts to conduct oversight of U.S. Department of Defense (DOD) and its failure to prevent waste, fraud, and abuse within the Department. In a letter to GAO Comptroller General Gene Dodaro, Subcommittee Chairman Sessions requests GAO’s ongoing assistance in analyzing the results of DOD’s fiscal year 2024 audits which provides Committee investigators insight to progress in reducing waste, fraud, and abuse within the DOD.

“In September 2024 the Subcommittee on Government Operations and the Federal Workforce held a hearing to examine DOD’s financial management practices and progress towards achieving a clean audit opinion,” wrote Subcommittee Chairman Sessions. “During that hearing, we released a DOD Financial Management Scorecard with DOD earning mostly failing grades across the board. The Committee was significantly informed by the scorecard developed with GAO’s support.”

In fiscal year 2024, DOD underwent its seventh financial statement audit, and again received a disclaimer of opinion. For the seventh time consecutively, auditors were unable to “obtain sufficient, appropriate audit evidence to support an opinion.”  GAO continues to designate DOD’s financial management and business systems modernization efforts as high risk because of pervasive deficiencies in the department’s business processes, internal controls, financial reporting, and financial management systems.

“To continue informing this Committee’s oversight of DOD financial management, and given GAO’s extensive work in this area, we are requesting GAO’s ongoing assistance in analyzing the results of DOD’s Fiscal Year 2024 audits,” continued Subcommittee Chairman Sessions. “This will allow us to track DOD’s progress toward achieving a clean audit opinion as well as progress in key areas that support a clean audit—the status of DOD financial management system modernization efforts and compliance with relevant legislative requirements. This analysis and the updated scorecard will provide the Committee with a valuable monitoring tool to effectively inform the DOD oversight work of this Committee.”

Read the letter to GAO Comptroller General Dodaro here.

Read More:Hearing Wrap Up: Proactive Oversight is Necessary to Ensure DOD Moves Toward a Clean Financial Audit