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Army made trillions in improper accounting adjustments: audit

Army made trillions in improper accounting adjustments: audit
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The U.S. Army made trillions of dollars worth of improper accounting adjustments to cover budget problems, Reuters reported Friday.
 
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In a June report, the Inspector General of the Defense Department said that the Army made approximately $6.5 trillion of improper adjustments in 2015 alone.
 
The report called the Army's financial statements "materially misstated" and unreliable.
 
“[Department of Defense] and Army managers could not rely on the data in their accounting systems when making management and resource decisions,” the report added.
 
An Army spokesman pushed back of the findings, saying the adjustment errors are far less serious.
 
“Though there is a high number of adjustments, we believe the financial statement information is more accurate than implied in this report,” the spokesman told Reuters, adding that the changes equal approximately $62.4 billion.
 
The audit’s findings echo previous accounting issues in the Defense Department.
 
In 2013, the agency falsified financial statements as it scrambled to meet an audit deadline, Reuters said.
 
In previous years, the Defense Department auditor has even included a disclaimer on all military reports, warning that the accounting is largely unreliable.
 
"They don’t know what the heck the balances should be,” former Defense Inspector General Jack Armstrong told Reuters, adding that false adjustments to financial statements were already a problem before he retired in 2010.