For the second year in a row, independent auditors verified that the Marine Corps’ financial records are materially accurate, complete, and compliant with federal regulations and issued an unmodified opinion for Fiscal Year 2024.
This repeat achievement reinforces the service’s reputation for accountability, discipline, and leadership; and this is only the second time such success has been achieved for a military service in Department of Defense history and twice attributed to the Marines.
The findings produced by the audit help the service to more efficiently and accurately plan, program, budget, and spend funds appropriated by Congress.
The Marine Corps’ audit process enabled accurate global tracking and reporting of financial transactions, inventory of facilities, equipment and assets, and accounting for taxpayer dollars spent during the last fiscal year. The auditors also tested the Marines Corps’ 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 becoming the first service to pass an annual financial audit, the Marine Corps took additional steps to stabilize its new accounting system and procedures. Independent public accountants contracted by the Department of Defense Inspector General audited all records. Financial management personnel also gained more hands-on experience, which set conditions for a smoother audit this year.
“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 auditor’s final report, enclosed in the Marine Corps’ Fiscal Year 2024 Agency Financial Report, highlights seven areas for the Marine Corps to improve upon, referred to as material weaknesses.
The Marine Corps will continue to drive to eliminate these weaknesses through systems improvement and internal controls. While doing this, the Corps will still prioritize the accurate counting and management of its global assets, a challenging task given the vast scope of its operations. By repeating and refining this process, the Corps aims to develop a more fluid and efficient enterprise resource planning system, ultimately positioning itself for long-term mission success and accountability.
The Agency Financial Report for Fiscal Year 2024 is available at: https://www.pandr.marines.mil/
