The Government Accountability Office (GAO) has reported that it is unable to provide an opinion on the reliability of the federal government’s consolidated financial statements, citing long-standing financial management problems at the Department of Defense, inadequate accounting for transactions between government agencies, and weaknesses in the process for preparing the statements.
“This is especially troubling given the significant domestic and international challenges facing our government, which place a premium on the need for accountability and transparency,” U.S. Comptroller General Gene Dodaro said. “The difficulty in providing an opinion is due to long-standing financial management problems at the Department of Defense, inadequate accounting for transactions between government agencies, and weaknesses in the process for preparing the statements.”
Pandemic relief programs have added to these problems, with continuing financial management deficiencies reported at the Small Business Administration and the Department of Education unable to adequately support the costs of its loan programs. Improper payments totaling $247 billion were also reported across several federal agencies and programs.
“The Small Business Administration had continuing financial management deficiencies in their pandemic relief programs, the Department of Education could not adequately support the costs of its loan programs, and improper payments totaling $247 billion were reported across several federal agencies and programs,” he said in a statement.
The GAO emphasizes the need for the government to address these serious financial management weaknesses and for Congress to develop a plan to put the government on a path toward long-term fiscal sustainability.
“It’s essential that the federal government has complete and accurate financial information, both across the government and within each agency, to operate as effectively and efficiently as possible,” Dodaro said. “While the federal government has made significant strides in improving its financial management, this year’s audit report emphasizes the need for the government to address these serious financial management weaknesses and for Congress to develop a plan to put the government on a path toward long-term fiscal sustainability.”
The federal government’s COVID-19 related appropriations totaled $4.5 trillion, with $4 trillion spent as of Sept. 30, 2022.
“Further, GAO suggests that Congress consider alternative approaches to the current debt limit as part of any long-term fiscal plan,” according to a news release.