Pentagon accounting problems ‘serious’: Treasury

WASHINGTON — The US administration is taking a hard look at problems in the Defense Department’s accounting, after a report called its books unauditable, the Treasury said Wednesday.

Treasury assistant secretary Richard Gregg told a Congressional panel there were “serious financial reporting issues” at the Pentagon, which in the current proposed budget before the Congress receives $553 billion, or some 15% of all US annual spending.

The remarks came after the US government watchdog the General Accounting Office (GAO) named problematic defense accounting standards as the primary reason it could not produce a full assessment of government spending in fiscal 2010.

The GAO cited “serious financial management problems at the Department of Defense (DoD) that have prevented DoD’s financial statements from being auditable.”

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