“In November 2022, DOD failed its fifth consecutive audit, unable to account for sixty-one percent of its $3.5 trillion in assets.”

Deepening Concerns Over DOD’s Asset Management Failures Following Fifth Consecutive Unsuccessful Audit

An examination of the Department of Defense’s unchecked waste, fraud, and mismanagement beyond the context of UAP phenomena

In November 2022, the U.S. Department of Defense (DOD) faced yet another significant setback: its fifth consecutive annual financial audit failed, revealing a troubling inability to accurately account for a substantial portion of its assets. Specifically, the department could not account for 61% of its total assets, amounting to approximately $2.14 trillion out of a total of $3.5 trillion. This persistent trend underscores deeper systemic issues in financial oversight and asset management that extend far beyond recent discussions about unidentified aerial phenomena (UAP).

Unraveling the Scope of the DOD’s Financial Accountability Challenges

Recognizing the severity of these failures, members of Congress are actively investigating the underlying causes and implications. House Committee on Oversight and Accountability Chairman James Comer (R-Ky.) and Subcommittee Chairman Pete Sessions (R-Texas) have issued formal inquiries to Defense Secretary Lloyd Austin. Their goal is to obtain comprehensive insights into the department’s financial management practices, ongoing efforts to implement previously recommended improvements, and the specific challenges hindering accurate asset tracking.

In a communication to Secretary Austin, the lawmakers emphasized the gravity of the situation:

“The Committee on Oversight and Accountability is investigating the Department of Defense’s failure to prevent waste, fraud, and abuse. In November 2022, DOD failed its fifth consecutive audit, unable to account for sixty-one percent of its $3.5 trillion in assets. The GAO also reports ongoing deficiencies in tracking government-furnished property in the possession of contractors. This ongoing inability to properly account for assets jeopardizes military readiness and represents a flagrant disregard for taxpayer funds, even as the department receives nearly a trillion dollars annually.”

Persistent Oversight Failures and Their Broader Impacts

The Department of Defense’s struggles with financial accountability have long been recognized as a critical risk factor. The Government Accountability Office (GAO) has repeatedly listed DOD’s financial management and contractor oversight as high-risk areas, highlighting recurring deficiencies that undermine transparency and operational efficacy.

In its January 2023 report, the GAO underscored the magnitude of the problem, stating that DOD remains unable to reliably track and account for hundreds of billions of dollars worth of government-furnished property—such