Major Pentagon agency does not have paperwork for more than $800million

A rep for Defense Logistics Agency, one of the US Defense Department’s biggest agencies, confirmed Monday that they could not account for more than $800 million that had been budgeted for various construction projects.

2016 audit result were first reported by Politico. Ernst & Young accounting firm found that the DLA had erroneously accounted for $465 million specified amount to be financed for the Army Corps of Engineers and other agencies projects. The audit found that the DLA had little or no documentation for another $384 million in spending projects.

The DLA, a supply order processor autonomously for the armed forces and related federal agencies, said it was not surprised by the result.

“DLA is the first of its size and complexity in the Department of Defense to undergo an audit, so we did not anticipate achieving a ‘clean’ audit opinion in the initial cycles,” the agency said in a statement. “The key is to use auditor feedback to focus our remediation efforts and corrective action plans, and maximize the value from the audits. That’s what we’re doing now.”

Sen. Chuck Grassley, R-Iowa, outspoken critic of the Pentagon’s spending, expressed disbelief that the agency would be able to fix the bookkeeping gaff.

“If you can’t follow the money, you aren’t going to be able to do an audit,” he told Politico in an interview.

“The [Pentagon] feeder systems can’t provide data. They are doomed to failure before they ever get started”, Grassley continued.

Previous Reuters had reported Defense Dept. to have “lost” $6.5 trillion in 2015 due to “wrongful budget adjustments.” Nearly half of that alarming sum, $2.8 trillion, was lost in just one quarter. Reuters said that the Army “lacked the receipts and invoices to support those numbers [the adjustments] or simply made them up” for the purpose to “create an illusion that its books are balanced.”

Officially, the DOD confirmed that its banking statements for 2015 were “materially misstated.”