Senate Passes Ayotte Amendment Requiring Pentagon Audit

Press Release

The U.S. Senate today unanimously approved an amendment offered by U.S. Senator Kelly Ayotte (R-NH) that would require the Department of Defense to provide an expedited accounting of its finances by September 30, 2014. The Pentagon is currently one of two cabinet-level departments that is not prepared to undergo an audit.

Offered as an amendment to the Fiscal Year 2012 National Defense Authorization Act, which the Senate is debating this week, Senator Ayotte's measure would ensure the Pentagon completes a validated full statement of budget resources (SBR) listing the funds the department received, the funds that were obligated, and what funds were ultimately spent. Her amendment is based on legislation she introduced earlier this month - the Department of Defense Audit Readiness Act of 2011 (S. 1790) - with Senator John McCain (R-AZ). A vote on final passage of the defense authorization bill could come as early as Thursday.

"With our nation facing a serious fiscal crisis, we must closely scrutinize spending at every federal agency, including the Pentagon. The Defense Department must be auditable to ensure that we're responsible stewards of taxpayer money," said Senator Ayotte, an Armed Services Committee member. "To distinguish between necessary defense budget cuts and reductions that would harm our troops and threaten readiness, we need reliable financial data and effective business processes and systems. I applaud Secretary Panetta's commitment to achieve audit readiness by 2014, and my amendment will help ensure the Pentagon meets this critical goal."

On October 13, Secretary of Defense Leon Panetta announced that he had directed the Department of Defense to cut in half the time it will take to achieve audit readiness for the SBR. Senator Ayotte's amendment would codify Secretary Panetta's commitment to achieve this important goal.

During a Senate Armed Services Readiness Subcommittee hearing in July, Senator Ayotte expressed concern that the Pentagon needs more reliable data and financial management processes to fully evaluate areas of potential savings. The Defense Department's inability to be audited could limit its ability to successfully implement management controls and efficiency initiatives, achieve savings, and redirect increasingly scarce defense dollars to higher priorities.

Source