Marine Corps passes financial audit for third year in a row as Pentagon struggles

The U.S. Marine Corps on Monday passed its third yearly audit in a row, maintaining its record as the only military service to pass an independent investigation of its finances.

The Marines said the audit’s results reflect the service’s reputation for “accountability, discipline and leadership,” and said the investigation’s findings will help the Corps better deliver on its promises to taxpayers.

“Discipline, accountability and stewardship are not administrative tasks; they are part of our war fighting culture. When the American people entrust us with their tax dollars, we owe them careful judgment and integrity in how those dollars are spent,” said Marine Corps Commandant Gen. Eric M. Smith. “Receiving our third consecutive clean audit opinion affirms that Marines take that responsibility seriously at every level, in every unit.”

The service added that over the years, its financial management personnel have taken steps to stabilize the Corps finances and have remained open to new systems and procedures.

The Corps’ audit also outlines seven “material weaknesses” the Marines can work on to improve next year, including building more efficient financial information systems and implementing a risk management system.

Sen. Roger F. Wicker, Mississippi Republican and chair of the Senate Armed Services Committee, praised the Corps for passing its audit and lambasted the Pentagon for repeatedly failing.

“I applaud the Marine Corps for achieving a clean audit for the third year in a row,” Mr. Wicker said Tuesday in a statement. “This feat is a testament to strong leadership from Commandant Eric Smith and an exemplary culture of accountability. The FY24 NDAA set a deadline of 2028 for completion of a clean audit for the entire department. The Pentagon must accelerate its efforts in the Army, Air Force, and Navy by rapidly deploying the $350 million from the defense reconciliation bill for the application of artificial intelligence and advanced automation to the audit.”

The Department of Defense has failed its financial audit every year since 2018, when Congress began mandating annual investigations. It is the only major government agency that has never passed.

Compared to the Marine Corps’, the Pentagon’s audit identified 26 material weaknesses, including a failure to report assets associated with the Joint Strike Fighter program.

Jules Hurst, the Pentagon’s top financial officer, says the department aims to deliver a clean audit by the end of 2028.

Defense Secretary Pete Hegseth has acknowledged the Pentagon’s spending must be reined in and said the department is committed to “openly sharing audit results and using them as a guide.”