Explained: $6.5 Trillion unsupported and undocumented in 2015 financial statement

LindaI

New Member
The Office of the Inspector General released the following on July 26th, 2016.
https://media.defense.gov/2016/Jul/26/2001714261/-1/-1/1/DODIG-2016-113.pdf

Clearly shown on the Office of the Inspector General's website:
-$2.8 trillion in third quarter journal voucher
-$6.5 trillion in year end
-data during FY 2015 financial statement
-the Defense Departmental Reporting System‑Budgetary (DDRS-B), a budgetary reporting system, removed at least 16,513 of 1.3 million records during third quarter FY 2015.


Can anybody debunk the above statements taken directly from the Office of the Inspector General? How is it $6.5 Trillion is shown unsupported and undocumented on a single year's (2015) statement?

I'm trying to determine if this is truth or bunk.
 
Last edited by a moderator:

Mick West

Administrator
Staff member
Can anybody debunk the above statements taken directly from the Office of the Inspector General? How is it $6.5 Trillion is shown unsupported and undocumented on a single year's (2015) statement?

It's the total of all the Journal Vouchers, a JV is not a record of money spent. JVs are made for all kind of accounting entries, including transfers from one account to another,or even just reclassifications of a transactions. There may be multiple JVs for each stage of a transaction. See:

http://www.state.ky.us/agencies/adm/mars/advantage/users/Mug09General.htm
 

LindaI

New Member
Thank you, Mick. As my confusion is accounting procedure related, not transaction related, I have emailed all to a trusted long time friend and CPA. She may be able to shed light on why accounting procedural errors (unsupported and undocumented entries) might be occurring on such a large scale within the DoD.
 

Mick West

Administrator
Staff member
Thank you, Mick. As my confusion is accounting procedure related, not transaction related, I have emailed all to a trusted long time friend and CPA. She may be able to shed light on why accounting procedural errors (unsupported and undocumented entries) might be occurring on such a large scale within the DoD.

The report identifies 46 root causes, it's quite complicated, but basically thier account systems are messed up.
https://media.defense.gov/2016/Jul/26/2001714261/-1/-1/1/DODIG-2016-113.pdf
Archived: https://web.archive.org/web/20160817204041/http://www.dodig.mil/pubs/documents/DODIG-2016-113.pdf
Page 48 on. (first page here)
20160817-133846-4flpt.jpg
 
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LindaI

New Member
Quite messed up indeed, Mick. In reading page 14 of the 74 pages the Office of the Inspector general determined
that 236, totaling $2 trillion, of the 263 third quarter JV adjustments in their sample and 170, totaling $2.1
trillion, of the 194 year end JV adjustments in their sample, were in fact unsupported because the adjustments:

forced general ledger amounts to agree with other data sources without reconciling the differences or determining which data source was correct;
corrected errors or reclassified amounts to other accounts without adequately documenting why the adjustments were needed; or
changed general ledger data without adequate documentation to support the adjustments.

My long time friend and CPA said she'd be fired for such incompetence.

At least we know this is not an issue for debunking...employee termination maybe...but not debunking.

Thank you again, Mick.
 

Uncleike

New Member
How can there be a 6.5 trillion dollar year end deficit when the entire national budget is around half that amount? The entire 2015 defense budget was about 690 Billion. I don't see how this adds up?
 

Mick West

Administrator
Staff member
How can there be a 6.5 trillion dollar year end deficit when the entire national budget is around half that amount? The entire 2015 defense budget was about 690 Billion. I don't see how this adds up?

There wasn't a deficit, that's the total of all improperly accounted for transactions, not lost money.
 
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