Report: Pentagon Has Not Submitted to an Audit and Has Been Hiding Waste and Fraud For Two Decades



LETTERKENNY ARMY DEPOT, Chambersburg, Pennsylvania—Linda Woodford spent the last 15 years of her career inserting phony numbers in the U.S. Department of Defense's accounts.

Every month until she retired in 2011, she says, the day came when the Navy would start dumping numbers on the Cleveland, Ohio, office of the Defense Finance and Accounting Service, the Pentagon's main accounting agency. Using the data they received, Woodford and her fellow DFAS accountants there set about preparing monthly reports to square the Navy's books with the U.S. Treasury's—a balancing-the-checkbook maneuver required of all the military services and other Pentagon agencies.


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  1. After reading the linked article, I think an optimal solution for the existing problem would be to hire independent auditors on a minimum wage plus percentage of funds recovered basis.

    This would ensure that auditors that fail to find anything are compensated for their time, provide a financial incentive to quickly and accurately work through inventory and outstanding contracts, and (God help me for suggesting this) provide jobs for people out of work that goes beyond PWA-style busywork and may result in a net gain to the treasury instead of a cost.

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