Is it true that the Army cooked the books and cannot account for trillions? How would something like this happen without criminal charges?

2018-03-11T12:54:52-04:00

I recently read an article which stated the Army had falsified budget records when over a trillion dollars could not be accounted for. Has anyone else heard of this? How would something like this happen without criminal charges and reief for cause of General Officers?

Response by SGM Erik Marquez made Mar 11 at 2018 1:05 PM

2018-03-11T13:05:44-04:00

MAJ Bob Firth Sir do you have a link to article? Cite? Source?
Had to articulate a response when we dont have the same info you do to review.

Response by MCPO Roger Collins made Mar 11 at 2018 1:24 PM

2018-03-11T13:24:58-04:00

Just googled this claim. It has happened nearly every year. I would bet the DODIG reports this every time with no action to reform the funds. One of the problems with Inspector Generals, good work with no authority to take action.

Response by SSG Edward Tilton made Mar 11 at 2018 2:04 PM

2018-03-11T14:04:33-04:00

You hit it on the head. The top staff get more from the contractors than their pension. They will abandon their troops, or worse, endanger them, for a kickback. In many countries they would be dragged out in cuffs, publicly shamed and then executed. Here they are welcomed into the ranks of the high priced parasites

Response by LTC Private RallyPoint Member made Mar 11 at 2018 2:27 PM

2018-03-11T14:27:36-04:00

It is not just the Army. No one in DOD has been audited. The incidents in the article are a small aspect of the issue.

Response by LTC Jason Mackay made Mar 11 at 2018 5:32 PM

2018-03-11T17:32:21-04:00

This is not the whole story. If you use Generally Accountng Practices (GAP) and you try and do something as simple as a balance sheet (assets, liabilities) and a cash flow sheet, you would have to put the value of all assets.....real estate, capital assets, equipment, etc. how do you value an M1 tank that has been through depot level rebuild like 6 times for your asset listing? In industry, that type of asset would be straight lined to zero over 10-15 years, disposed of, and a new asset programmed for use. The value of inventory on hand....including CIF. So that 25 year old e-tool, how is that valued? Most organizations would not even track that as an asset. Anything under $500 is usually considered disposable. I can write off assets as a civilian Director that would take a Brigade Commander to provide relief over.

What is the street value of Fort Hood? Do you factor in known environmental liabilities if you were to sell it? What is the commercial value of a motorpool? Does it matter that it has little to no commercial value? Go to Picatinny Arsenal, look at a temporary building built in the great depression as a storage magazine, after a small renovation it is now a R and D for explosives, then it is changed to a test facility, then to admin space, then it is an explosives lab again. Is the value zero because of asset age or is it based on original cost or is it replacement value? This is all rolled in in Long Term Fixed assets on a Balance Sheet.

How is an auditor going to process FLIPLs that are under investigation?

So in the attached article, it is that the money is not properly accounted for....meaning not expensed to the correct account in a mindless maze of T Accounts of debits and credits through tens of thousands of journal entries. Justnin the DFAS COBOL based system, there are 128 documented work around to get pay to service members so that get what we owe them. So each time you run one of those for each person who needs it, it creates an accounting ripple in the pond that now carries through to the other parts of the system.

Also in here is the accounting errors of previous years. Each FY, budgeteers have to review how many fiscal years? You in the back, yes you...correct, 5 fiscal years plus the one you are actually closing out. It is absolutely mind numbing, budgeteers combing through individual transactions to find the dreaded ULO, unliquidated obligation, money DoD owes to someone else. It is a hot mess....even though people paid the invoices as they arrived and accounted for it at the time it was spent.

https://www.jacobinmag.com/2018/01/pentagon-budget-government-spending-military

Dark Money At the Pentagon

Researchers have discovered trillions of dollars in unexplained military spending. We might never find out where it went.

Response by SGT Aric Lier made Mar 11 at 2018 5:51 PM

2018-03-11T17:51:22-04:00

3000 toilet seats hammers at 398 yes it is common, spend it or lose it

Response by SSG Private RallyPoint Member made Mar 11 at 2018 10:40 PM

2018-03-11T22:40:16-04:00

A lot of it could have been listed as 'miscellaneous expenses.' After all, when described properly, anything can be made to fit under 'miscellaneous.'

Response by MAJ Bob Firth made Mar 12 at 2018 9:37 AM

2018-03-12T09:37:38-04:00

The big issue here is the deliberate falsification of financial records. No criminal charges? Apparently this is tolerated. It seems that the Secretary of the Army should be fired and Chief of Staff relieved.

Response by MSG Charles Turner made Mar 12 at 2018 2:20 PM

2018-03-12T14:20:07-04:00

Sir,

Dont know about at the Army level but I have seen personally how books could be in error. Maybe "Cooking" the books in an incorrect description and accounting or clerical error is more appropriate. You know the old concept 'Innocent until proven guilty".

~ole Sarge~

Response by CW3 Jeff Held made Mar 12 at 2018 10:21 PM

2018-03-12T22:21:47-04:00

If that were true it would be on every network.

Response by MSG John Duchesneau made Mar 13 at 2018 2:53 AM

2018-03-13T02:53:02-04:00

The book cooking was probably done by civilian bureaucrats and not by people in uniform. Uniformed personnel, with rare exceptions, rarely have access to funds and don't do accounting.

Response by SSG Edward Tilton made Mar 13 at 2018 11:17 PM

2018-03-13T23:17:26-04:00

Isn't that part of the swamp we are supposed to be draining

Response by SSgt Jeff Martin made Mar 24 at 2018 8:36 AM

2018-03-24T08:36:39-04:00

Trillions? Billions maybe but Trillions is a lot of money to unaccount for.