GAO: Pentagon failing to track improper contractor payments

In fiscal 2011, the Pentagon reported over $1.1 billion in improper payments, which refers to either an under- or overpayment of a contractor.

ADVERTISEMENT
Senate Homeland Security and Government Affairs Chairman Tom Carper (D-Del.), who authored the 2010 law along with Sen. Susan CollinsSusan Margaret CollinsBipartisan group of lawmakers aim to reform US sugar program A bipartisan bridge opens between the House and Senate Gaming the odds of any GOP tax bill getting signed into law MORE (R-Maine), said in a statement that the report was a “troubling” reminder of the problems with the Pentagon’s accounting failures.

“The Department spends about a trillion dollars annually, but officials have no idea how much of that money it loses to waste and fraud. This is simply unacceptable,” said Carper, who had requested the report with his ranking member Tom CoburnTom CoburnFormer GOP senator: Trump has a personality disorder Lobbying World -trillion debt puts US fiscal house on very shaky ground MORE (R-Okla.) and Sen. Claire McCaskillClaire Conner McCaskillDemocratic Homeland Security members request additional DHS nominee testimony Senate panel delays vote on Trump’s Homeland Security pick Steve Israel: ‘We had a better time at the DMZ than we’re going to have tonight’ MORE (D-Mo.).

Coburn said the report was more proof that the Pentagon must be audited, something that the department is currently not capable of. The Pentagon has vowed to get ready for an audit by 2017.

The GAO report faulted the Pentagon for failing to adapt key quality assurance procedures for tracking improper payments. It said the department did not develop sampling measures for estimating improper payments, maintain key documentation to support its estimates or conduct recovery audits or a required risk assessment.