S. 5185
Audit the Pentagon Act
Official summary
Written by the Congressional Research Service.
Audit the Pentagon Act
This bill requires the Department of Defense (DOD) to reduce spending for any department, agency, or other DOD element that DOD determines has not achieved an unqualified opinion on its full financial statements for the calendar year ending during that fiscal year. (An unqualified opinion or clean audit means an auditor has determined the financial statements are presented fairly and provide a true view of an entity’s financial position.)
Specifically, the amount available to such department, agency, or element for the fiscal year when the determination is made must be reduced by 2%. Amounts unavailable to such department, agency, or element must be applied on a pro rata basis against each program, project, and activity.
DOD must deposit such unavailable amounts in the general fund of the Department of the Treasury for purposes of deficit reduction.
Text of the bill
If during any fiscal year after fiscal year 2024, the Secretary of Defense determines that a department, agency, or other element of the Department of Defense has not achieved an unqualified opinion on its full financial statements for the calendar year ending during such fiscal year—
(1) the amount available to such department, agency, or element for the fiscal year in which such determination is made shall be equal to the amount otherwise authorized to be appropriated minus 2.0 percent;
(2) the amount unavailable to such department, agency, or element for that fiscal year pursuant to paragraph (1) shall be applied on a pro rata basis against each program, project, and activity of such department, agency, or element in that fiscal year; and
(3) the Secretary shall deposit in the general fund of the Treasury for purposes of deficit reduction all amounts unavailable to departments, agencies, and elements of the Department in the fiscal year pursuant to determinations made under paragraph (1).