SPINNEY: It's to enforce the accountability clause of the Constitution. Which means that you can't spend money unless Congress specifically appropriates it. Well,
the Pentagon has never passed an audit. They have 13 or 15, I forget the exact number, of major accounting categories. That each one has it's own audit.
The only one of those categories that's ever been passed is the retirement account. Now under the CFO Act of 1990 they have to do this audit annually. Well,
every year they do an audit and the inspector general would issue a report saying we have to waive the audit requirements, because we can't balance the books. We can't tell you how the money got spent. Now what they do is try to track transactions. And in one of the last audits that was done the transactions were like…
there were like $7 trillion in transactions. And they couldn't account for about four trillion of those transactions. Two trillion were unaccountable and two trillion they didn't do, and they accounted for two trillion. MOYERS: So, you mean, they're…
SPINNEY: They don't know where the money's going.
Well, guess what
the Senate Armed Services and the House Armed Services agree to do in their infinite wisdom? They decided towaive the Pentagon's requirement for these annual audits
in their authorization bills. So the Pentagon no longer has to do it.
Now the rationale was that we all know that this is a problem, we don't need to be told every year. Of course the one good thing about these audits was it would generate a small burst of news stories every April or May when the audits were due saying the Pentagon can't follow it's money. You know, there's a trillion dollars unaccounted for.
http://www.pbs.org/now/transcript/transcript_spinney.html