Defense Department Struggles with Financial Reporting Controls Amidst Audit Cycle

The Pentagon has failed its eighth consecutive audit, restating its goal for a clean audit by 2028. The yearly audit identified 26 material weaknesses and two significant deficiencies in the department’s controls for financial reporting in fiscal 2025. According to a DoD report released today, the department did not report the F-35 Joint Strike Fighter program’s assets in the global spares pool, resulting in a misstatement. Defense Secretary Pete Hegseth said the department remains committed to rigorous annual financial statement audits. The comptroller stated that significant progress was made in FY25 but acknowledged more work is needed to meet its goals.