US Army makes improper accounting adjustments adding up to trillions of dollars
While one can imagine a corporation making accounting errors amounting to millions or in the case of very large corporations even a billion dollars, according to a Reuters report, the U.S. Army made improper accounting adjustments of trillions of dollars.
|1 of 3|
|The Defense Department's Inspector General, issued a report in June that claims the Army's finances are in such disarray that it made improper accounting adjustments of trillions of dollars to make it look as if the books were in balance. In a June report the Inspector General found that the Army made a whopping $2.8 trillion in incorrect adjustments in just one quarter alone in 2015. For the entire year there were $6.5 trillion in improper adjustments. The Army either lacked receipts and invoices for the adjustments or simply made them up.|
At first glance adjustments totaling trillions may seem impossible. The amounts dwarf the Defense Department’s entire budget. Making changes to one account also require making changes to multiple levels of sub-accounts, however. That created a domino effect where, essentially, falsifications kept falling down the line. In many instances this daisy-chain was repeated multiple times for the same accounting item.