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Many of our Ricochetti are active in, or retired from, the military and I thank them with deep gratitude for their service. But this year, reports regarding our military’s abilities to manage effectively, operate efficiently, and take security seriously have shaken my faith in it. The latest report of the Department of Defense’s Inspector General included a mind-boggling finding: The US Army has so poorly managed its finances that it has had to make trillions of dollars in adjustments to “create an illusion that its books are balanced.” That’s right: trillions. From Reuters:
The Defense Department’s Inspector General, in a June report, said the Army made $2.8 trillion in wrongful adjustments to accounting entries in one quarter alone in 2015, and $6.5 trillion for the year. Yet the Army lacked receipts and invoices to support those numbers or simply made them up. As a result, the Army’s financial statements for 2015 were “materially misstated,” the report concluded. The “forced” adjustments rendered the statements useless because “DoD and Army managers could not rely on the data in their accounting systems when making management and resource decisions.”