The DoD Office of Inspector General (OIG) released its Independent Auditor’s Reports as part of the DoD’s FY 2025 Agency Financial Report, which includes the Agency-Wide Financial Statements for FY 2025. The Independent Auditor’s Reports comprise three separate reports—the Report on the Financial Statements, Report on Internal Control over Financial Reporting, and Report on Compliance with Applicable Laws, Regulations, Contracts, and Grant Agreements.
The OIG issued a disclaimer of opinion, meaning that the auditors could not obtain sufficient, appropriate audit evidence to support an opinion. The DoD Agency-Wide opinion is the culmination of a larger effort to audit, oversee, and consider the results of the audits of nearly 30 Department Components. The eighth annual full-scope DoD Agency-Wide Audit assessed approximately $4.6 trillion in assets this year.
“Department officials have made progress to improve financial management, resulting in auditors downgrading material weaknesses,” said Acting IG Steve Stebbins. “As the OIG, we continue to focus on delivering recommendations that will help the Department address financial management problems, especially in our role as the group auditor.”
The OIG performed group audit procedures at the Agency-Wide level and considered the results of the Component audits performed by independent public accounting firms. During this year’s Agency-Wide audit, the OIG identified 26 material weaknesses, two significant deficiencies, and five instances of noncompliance with laws, regulations, contracts, and grant agreements. Material weaknesses are significant concerns that could prevent management from detecting and correcting a material misstatement in a timely manner. Significant deficiencies are less severe than material weaknesses but are important enough to formally communicate to management.
The OIG plans to issue a separate report in late spring 2026 that provides greater detail on the factors contributing to the material weaknesses. The OIG is also updating its website to provide information on financial statements and the associated audits.
The OIG audited these Agency-Wide Financial Statements in accordance with the Chief Financial Officers Act of 1990.
The Independent Auditor’s Report and the DoD Agency Financial Report are available at https://comptroller.war.gov/odcfo/afr/.