>> Can you imagined a balanced budget?>> While President Trump has pledged to slash spending at government agencies like the EPA and the State Department, he wants a major boost to defense spending, as part of his proposed 2018 budget. But a series of recent reports by the Government Accountability Office and the Defense Department itself, say the Pentagon can't even keep track of all the money it already has, Reuters correspondent Scott Paltrow explains.
>> Little known fact is that they cannot keep track of their money at all, they have no functioning accounting system, the system is in disarray. The military services end up entering made up numbers in the books, so that they appear to match with the Treasury's numbers.>> Diehard supporters of the military may think, good, add $54 billion on top of the $600 billion it already gets, but Paltrow says in some cases more money, more problems.
>> It's not purely a question of accounting at all, people miss, I mean when you bring up accounting their eyes sort of glaze over, but it has far bigger consequences then just that. It has a direct bearing on military operations, the amount of money needed say for naval exercises and planning.
Because the military doesn't know if it has enough money to conduct planned actions of various kinds, or it may think it has more money than it really does. Every other federal agency gets audited every year, and almost always passes, the Pentagon is in such bad shape that it can't even be audited, and has never been audited.
>> But not for long, as the Pentagon faces a congressionally mandated deadline of September 30th to prepare for its first audit, ever.