WASHINGTON,
D.C. – U.S. Representative Jan Schakowsky (D-IL), the top Democrat on the
Government Efficiency Subcommittee, today called for a hearing to examine
the latest round of financial abuses and accounting mismanagement at the
Defense Department.
The
General Accounting Office (GAO) found that the Pentagon is having difficulty
correcting its accounting books (Report --
Canceled DOD Appropriations: Improvements Made but More Corrective Actions
Are Needed. GAO-02-747, July 31). According to GAO, the Defense
Department is unable to reconcile “closed” or “canceled” appropriations
accounts for fiscal year 2000 as required by a 1990 law, which states that
appropriation accounts must be closed within five years. Congress
passed that law to ensure that the Pentagon is not spending money for purposes
not approved by the legislators.
The
GAO report found that it would require 2300 staff hours, or ten years,
“to correct the accounting for all of the affected fiscal year 2000 transactions.”
GAO added, "The substantial time and resources it takes to sort through
DOD's complex accounting processes to correct these types of errors is
yet another reason why DOD has to ensure that it accurately records transactions
the first time around."
“I
am troubled that the accounting at the Defense Department looks so much
like the deceptive accounting used by Enron and WorldCom. DOD was
using accounting gimmicks to circumvent the law. GAO may be pleased
that these adjustments have been reduced by 80%, but I want to know when
all illegal adjustments have been stopped,” said Schakowsky.
“I
will be calling for hearings on this and other abuses at the Defense Department
as soon as Congress returns in September. The Defense department
must be held accountable to the American taxpayers for its budget gimmicks,”
added Schakowsky.
Schakowsky
is the ranking Democrat on the Government Reform Subcommittee on Government
Efficiency, Financial Management, and Intergovernmental Relations.
The subcommittee has examined abuses with the Pentagon’s credit and travel
cards programs and others that have wasted millions of taxpayer dollars. |