Reuters Investigates - UNACCOUNTABLE: The Pentagon's bad bookkeeping - 0 views
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MILES OF AISLES: At the Defense Logistics Agency's giant storage facility outside Harrisburg, Pennsylvania, lack of reliable information on what's there makes it hard to throw out excess inventory. REUTERS/TIM SHAFFER
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Part 2: For two decades, the U.S. military has been unable to submit to an audit, flouting federal law and concealing waste and fraud totaling billions of dollars
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At the DFAS offices that handle accounting for the Army, Navy, Air Force and other defense agencies, fudging the accounts with false entries is standard operating procedure, Reuters has found. And plugging isn’t confined to DFAS (pronounced DEE-fass). Former military service officials say record-keeping at the operational level throughout the services is rife with made-up numbers to cover lost or missing information.
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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. And every month, they encountered the same problem. Numbers were missing. Numbers were clearly wrong. Numbers came with no explanation of how the money had been spent or which congressional appropriation it came from. “A lot of times there were issues of numbers being inaccurate,” Woodford says. “We didn’t have the detail … for a lot of it.”
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The data flooded in just two days before deadline. As the clock ticked down, Woodford says, staff were able to resolve a lot of the false entries through hurried calls and emails to Navy personnel, but many mystery numbers remained. For those, Woodford and her colleagues were told by superiors to take “unsubstantiated change actions” - in other words, enter false numbers, commonly called “plugs,” to make the Navy’s totals match the Treasury’s. Jeff Yokel, who spent 17 years in senior positions in DFAS’s Cleveland office before retiring in 2009, says supervisors were required to approve every “plug” - thousands a month. “If the amounts didn’t balance, Treasury would hit it back to you,” he says.
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Nothing new here. Remember when Donald Rumsfeld announced the day before 9-11 that the Pentagon could not account for $2.3 trillion? https://www.youtube.com/watch?v=oj1rT4bszWg It was the same way in Viet Nam. During my entire 27 months there, we could not be issued socks. We had to write home to ask family or friends to buy socks and send them to us. They could buy them at military surplus stores in the U.S., regulation Army field socks with cushion soles, but we couldn't get them from the Army. "An army travels on its feet," but no socks. Socks were not the only supply chain failures, of course. If you can't manage to get socks to your soldiers because they've been declared surplus, maybe you'd have problems accounting for expenditures too, ya' think?