The U.S. Marine Corps has now passed its audit for a second straight year while the rest of the Defense Department is still working toward the goal.
“Independent auditors verified that the Marine Corps’ financial records are materially accurate, complete, and compliant with federal regulations and issued an unmodified opinion for Fiscal Year 2024,” the service announced in a Feb. 4 statement.
The efforts to pass an audit “tell the American people that a dollar invested in the Marine Corps is a dollar well spent,” Marine Corps Commandant Gen. Eric Smith said in the statement. “Make no mistake, passing an audit makes us more ready to fight when our nation calls.”
Reporting for $49 billion in financial assets “requires a holistic view from the ground level up to the highest service levels,” said Lt. Gen. James Adams III, deputy commandant for programs and resources. “The audit process demonstrates Marines’ inherent integrity — opening up and illuminating potential audit mistakes and inventory miscounts across the entire chain of command. That can be an uncomfortable experience for Marine leaders of all ranks.”
A clean audit means the Marine Corps is able to accurately track and report financial transactions globally; keep correct stock of inventory of facilities, equipment and assets and can account for “taxpayer dollars spent during the last fiscal year,” the statement notes.
Passing an audit also means the service can better plan, program, budget and spend congressionally appropriated funds.
The Marine Corps is now taking additional steps beyond passing an annual audit to “stabilize” its new accounting system and procedures, according to the statement.
The Pentagon, in its seventh year conducting a full audit, has made progress toward a clean audit but has yet to pass across the board.
“I believe the department has turned a corner in its understanding of the challenges and, more importantly, in addressing those challenges. Momentum is on our side,” the Pentagon’s Comptroller and Chief Financial Officer Michael McCord said in November 2024 when the department announced the results.
The Pentagon has until FY28 to obtain a clean opinion from the Inspector General as mandated by Congress.
The Defense Department saw major progress in resolving material weaknesses, a key metric used to track auditability. The department, for example, resolved all contingent legal liabilities considered material weaknesses.
“The department continues to need the sustained investment, senior leadership commitment and the support of our partners in Congress, federal regulators, the audit community and our military and civilian personnel to accomplish its audit goals,” McCord said. “An unmodified audit opinion has always been the Department’s primary financial management goal, and with their help, I know it is achievable.”
Jen Judson is an award-winning journalist covering land warfare for Defense News. She has also worked for Politico and Inside Defense. She holds a Master of Science degree in journalism from Boston University and a Bachelor of Arts degree from Kenyon College.
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