In December 2020, the Defense Department (DoD) issued its latest annual Agency Financial Report. The financial statements in this report were a part of the third consecutive full-scope, department-wide audit. The COVID pandemic posed some special challenges and issues for the latest audit. The process took longer than in the previous year, but when all was said and done, the DoD received another disclaimer (failing) audit opinion on its financial statements.
With this report, Truth in Accounting ranks DoD component entities based on their fiscal year (FY) 2020 audit performance. We issue this ranking to identify relative strengths and weaknesses in financial reporting, to track progress over time, and to identify agency leaders who serve as good examples for the department as a whole.