Accounting News

Tuesday, October 18, 2011
DOD Looks to Improve Accounting

The Department of Defense has vowed to clean up their accounting systems. With an annual budget of $670 billion they are notorious for lack on fiscal control. They have a project underway for a new accounting system but it won't be finished until 2017 and may cost an additional one billion dollars. That is assuming they don't have any more cost overruns or delay. And to expect that is a pipe dream.

In a test audit of the Marine Corps. of just $4 billion in war spending ended very badly. Two billion could not be verified and more was misreported. The Army has spent four billion over the last 15 years on a system call the Global Combat Support System. It was designed to replace outdated accounting systems but is still yet to go online.

It is hard to say if the DOD needs more or less money when it can't account for its current budget. Lets hope that the congressional investigations underway bring some semblance of control to their accounting.