Each year, the DoW releases its financial statements for both the whole Department and some individual Components. The DoW OIG audits or oversees the audits of these statements to make sure the financial information is accurate and prepared according to accounting standards.
Figure 1: DoW Statistics, FY 2025
Why Do Audits Matter?
The audits help verify that the DoW uses taxpayer funds responsibly. They help confirm that spending is tied to real mission needs, accurately recorded, and proper. Audits also help ensure the DoW's financial statements are clear and reliable. If a DoW Component does not have strong processes to track how funds are spent, confidence in its reporting can suffer. Audit findings point out gaps in controls, processes, and asset management. The DoW then uses these findings to create corrective action plans and improve its financial operations.
What Do We Audit?
We audit what the DoW owns, owes, and receives. The DoW pays the salaries of service members and civilians, operates facilities around the world, and has a tremendous amount of physical assets. It also receives nearly a trillion in funding from Congress each year and tracks these funds through more than 426 financial systems. This makes the DoW’s financial statements and the audit very complex.
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