Pentagon Agency Failed to Keep Track of Hundreds of Millions for Construction Projects: Internal Audit

The Pentagon’s Defense Logistics Agency failed to properly document hundreds of millions of dollars’ worth of funding for construction projects, according to an internal audit performed by the auditor Ernst & Young.

It is the first year that the audit has been performed.

The publicly available audit of agency’s general fund said the agency “lacks policies and procedures to review” construction projects and properly document the projects in its financial statements, leading to errors in reporting valued at approximately $465 million.

The Pentagon, the headquarters of the U.S. Department of Defense, located in Arlington County, across the Potomac River from Washington, D.C. is seen from the air Jan. 24, 2017. (Credit: DANIEL SLIM/AFP/Getty Images)

The Pentagon, the headquarters of the U.S. Department of Defense, located in Arlington County, across the Potomac River from Washington, D.C. is seen from the air Jan. 24, 2017. (Credit: DANIEL SLIM/AFP/Getty Images)

The auditors also said that the Defense Logistics Agency was unable to provide supporting documentation to substantiate in progress construction projects, saying that such supporting documentation was missing or “insufficient to substantiate approximately $384 million” in construction assets.

The Defense Logistics Agency acknowledged the shortfalls while saying they were working to remedy the issues…

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