The 2024 audit of Department of Defense (DOD) highlights notable progress towards achieving the financial goals set for 2028. Despite a general assessment of non-compliance, significant progress has been made in understanding and resolving financial challenges. Thirteen entities received unmodified audit opinions, marking an improvement over the previous year’s results. Led by the Secretary of Defense, continued efforts are focused on reducing material weaknesses and strengthening financial transparency, demonstrating a collective desire to take the necessary steps to achieve a modified audit opinion by 2028.
The audit financial 2024 of the Department of Defense (DOD) highlighted significant progress towards achieving the objectives set for 2028. Despite a “denial of opinion” status on the financial statements, the DOD recorded improvements continued each year, with nine entities obtaining unmodified audit opinions. For the first time, the Defense Threat Reduction Agency has also reached this level of auditing. DOD Finance Officer Mike McCord highlighted the growing commitment to overcoming weaknesses identified materials, mainly linked to the reconciliation fund balances with the Treasury. Pressure from Congress to achieve an unmodified audit by 2028 remains strong, and DOD must step up its efforts to meet this deadline.
DOD 2024 audit reveals progress toward 2028 goals
The financial report of Department of Defense (DOD) for Fiscal Year 2024 has been released, revealing significant progress since audits began in 2018. Although the report indicates a opinion of non-compliance of the DOD financial statements, it shows constant improvement. THE chief accountant Mike McCord emphasized that the DOD leadership team is committed to achieving a unqualified audit opinion by 2028. This is part of an effort to address persistent financial challenges, incorporating rigorous audits each year.
High-performance entities facing audits
For the year 2024, a total of 28 entities were audited, generating varied opinions. Of these entities, nine received unqualified audit opinion, which demonstrates a consistent improvement compared to the previous year’s results. Results from three other entities are pending, but forecasts indicate a similar positive trend. The emphasis is on hard work to eliminate material weaknesses in audits, a process that McCord describes as essential to succeeding in meeting the federal government’s financial commitments.
Future prospects and challenges ahead
The coming years promise to be crucial for the DOD, which must meet the demands of Congress. By 2028, the department aims to intensify its efforts to reach the milestone of unqualified opinion audits. With a goal of reducing material weaknesses, current initiatives represent fundamental steps towards achieving this long-term goal. McCord noted that more substantial work is needed, but results so far show a positive trajectory toward achieving the audited objectives.
