Subcommittee on Government Operations Chairman Pete Sessions and Ranking Member Kweisi Mfume are scrutinizing the Department of Defense's financial management practices as it works towards achieving a clean audit. They have requested a bipartisan briefing from DOD Secretary Pete Hegseth to discuss the department's updated efforts in addressing financial management issues and its progress toward a clean audit by December 2028, with a plan expected by the end of June 2025.
"DOD spending comprises nearly half of the federal government’s discretionary spending and its physical assets make up more than 70 percent of the government’s physical assets. The failure to fully account for these assets and spending results in gaps in DOD’s operational readiness and the financial strength of the entire federal government," stated Sessions and Mfume. "Experts from the DOD Office of the Inspector General, and the Government Accountability Office (GAO) detailed the challenges that DOD faces and necessary actions to increase the likelihood of achieving a clean audit opinion by the mandated deadline of December 31, 2028."
The Subcommittee's investigation into DOD's discretionary spending aims to address ineffective financial management hindering clean audits. A hearing was held on April 29, 2025, to assess DOD's progress. The department has failed seven financial audits since being required to do so in 1990, with only the U.S. Marine Corps obtaining a clean audit opinion. The House Committee on Oversight and Government Reform will continue examining how DOD can better manage taxpayer dollars.
"In correspondence received in lieu of attendance, we were assured 'that working towards a ‘clean audit’ is among the Department’s top priorities.' As stated in previous hearings, if DOD is to achieve a clean audit opinion by December 2028, significant progress must be made by fiscal year 2026. Based on testimony before the Subcommittee, there is still a lot of work ahead for the Department. To assist the Committee’s oversight of this matter, we request a briefing on DOD’s efforts to address outstanding issues related to financial management and plans for achieving a clean audit opinion for the Department, by June 27, 2025," concluded Sessions and Mfume.
