The Great Audit

By Elizabeth Newell

The watchdog group Project on Government Oversight is hailing legislation introduced by Republican senators John McCain, Ariz., Tom Coburn, Ok., and Charles Grassley, Iowa, that would set firm deadlines for the Defense Department to undergo a complete audit of its financial statements.

"It's only fitting at a time when we are calling for increased fiscal responsibility from companies that we demand the same from the Department of Defense," said POGO Executive Director Danielle Brian.

In introducing the 2009 Department of Defense Financial Accountability Act, the senators said they find it unacceptable that the department, with a base budget of over half a trillion dollars, has never been fully audited. Accounting problems at Defense have cost taxpayers about $13 billion in a single year, according to the Government Accountability Office.

"The consequences of not having an audited financial statement in the Department of Defense is costing lives," Coburn said in a statement. "The waste from this lack of financial accountability, estimated in the billions, results in fewer weapons and less resources for our troops in combat. The Constitution demands financial accountability throughout the government, and the Financial Accountability Act will finally force the Department of Defense to comply with this requirement."