The Marine Corps has received a second consecutive unmodified opinion on its annual financial statements, with independent auditors concluding the service’s Fiscal Year 2024 records are materially accurate, complete, and compliant with federal regulations, according to the Corps.
The repeat result marks only the second time in Defense Department history that a military service has secured a clean annual audit opinion—both achieved by the Marines—bolstering the Corps’ standing as a leader on financial stewardship within the Pentagon.
Officials said the audit process supported more precise planning, programming, budgeting, and execution of congressionally appropriated funds. Auditors reviewed the Marine Corps’ global tracking and reporting of financial transactions and inventories of facilities, equipment, and other assets, and examined the service’s network, key business systems, and internal controls.
“I am immensely proud of this historic achievement and the hard work done by the thousands of Marines, sailors, and civilians across the Marine Corps that made this happen,” said Gen. Eric M. Smith, Commandant of the Marine Corps. “Their efforts tell the American people that a dollar invested in the Marine Corps is a dollar well spent. Passing a second annual audit demonstrates our commitment to being good stewards of our nation’s tax dollars and is part of how we distinguish ourselves as a professional warfighting organization. Make no mistake, passing an audit makes us more ready to fight when our nation calls.”
Since earning its first clean opinion, the Corps says it has further stabilized its new accounting system and procedures. Independent public accountants contracted by the Department of Defense Inspector General audited all records, and financial management personnel gained additional experience to help streamline this year’s review.
“The Marine Corps culture has always emphasized accountability to yourself, your fellow Marines, your unit, down to the lowest tactical levels,” said LtGen. James Adams III, Deputy Commandant for Programs and Resources. “But financial reporting for $49 billion in financial assets requires a holistic view from the ground level up to the highest service levels. 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. Now magnify that across an entire service. By educating all Marines on the importance of accurate counts, and through our use of independent audit and inspection teams, we were able to gain an accurate accounting of the resources entrusted to the Corps.”
The FY 2024 Agency Financial Report identifies seven material weaknesses the service still needs to address. Marine officials say they will work to remediate those areas through system improvements and strengthened internal controls while continuing to refine enterprise resource planning and maintain accurate, global asset management.
The Defense Department as a whole has not yet received a clean audit opinion since launching department-wide financial reviews in 2018.
The Marine Corps’ Agency Financial Report for Fiscal Year 2024 is available at: https://www.pandr.marines.mil/
