Is Kathleen Hicks the most arrogant federal agency chief since J. Edgar Hoover?

For the seventh year in a row, the Department of Defense (DOD) has failed its annual financial statement audit, a massive undertaking meant to ensure accountability for its $3.8 trillion in assets and $4 trillion in liabilities.

Kathleen Hicks, as the U.S. Deputy Secretary of Defense, oversees the formulation and implementation of defense policy, budget, and strategy. Her responsibilities include:

  • Policy Oversight: She directs strategic policy, ensuring alignment with national security goals.
  • Budget Management: Hicks plays a pivotal role in managing the Defense Department’s budget, advocating for necessary resources, and ensuring fiscal responsibility.
  • Military Strategy: She helps shape military strategy, addressing current threats and future readiness.
  • International Engagement: She manages relationships with international partners, enhancing security cooperation.
  • Acquisition and Technology: Supervising the development and acquisition of new military technologies.
  • Personnel Policy: Overseeing policies related to military personnel, including readiness and welfare.
  • Advisory Role: Advising the Secretary of Defense on all departmental matters, guiding decisions that impact defense operations globally.

Her work should ensure defense strategies are effective, funds are well-spent, and the military remains prepared and technologically advanced. Instead they can’t account for and still use out-dated technology, including Windows XP which is no longer considered secure for military use as it hasn’t received security updates since 2014.

You’d think they would show some shame

Here she is – the epitome of a smug, unaccountable Swamp creature, denying that the inability to account for billions of dollars amounts to waste, or corruption.

With $3.8 trillion in assets, the DoD has never passed its yearly audit. It is on the General Accounting Office’s high risk list for fraud waste and abuse. Yet the Deputy SecDef scoffs at Jon Stewart for questioning why.

Why can’t she identify where all the allocated funds have gone?

The issue of tracking and accounting for all defense funds, as highlighted in various discussions and reports, does stem from some complex challenges within the Department of Defense (DoD) but these should have been addressed and fixed. Logistics are the name of the game in everything from Amazon to Inventory management. The DoD should be leading in this field – not wasting their money of poisonous vaccines and ancient technology.

  1. Scale and Complexity of Operations:
    • The DoD operates on a massive scale with a budget exceeding $800 billion annually. This includes funding for various programs, operations, personnel, and acquisitions across numerous branches, commands, and international activities. The vastness of these operations makes comprehensive tracking extremely challenging.
  2. Legacy and Incompatible Systems:
    • The DoD has historically relied on outdated, legacy financial management systems that are not integrated. These systems often cannot communicate with each other, leading to inefficiencies in tracking expenditures. Efforts to modernize these systems have been ongoing but are complex and costly.
  3. Audit Failures:
    • The DoD has failed to pass its financial audits in recent years, which indicates significant issues with financial management and accountability. Problems include:
      • Incomplete or missing documentation for transactions.
      • Asset management challenges, where physical assets like equipment or property might not be accurately recorded or located.
      • Complex accounting for military expenditures, including operational costs, which can be difficult to pinpoint to specific line items or projects due to their dynamic and sometimes classified nature.
  4. Procurement and Contract Management:
    • Defense contracts are often large, long-term, and involve many subcontractors. The complexity in these contracts, especially with cost-plus contracts, can lead to difficulties in tracking money flow and ensuring all funds are accounted for as intended.
  5. Classified Programs:
    • A significant portion of the DoD’s budget is allocated to classified programs. By their nature, these programs have limited transparency, making it hard to account for funds in public audits or discussions.
  6. Decentralized Budget Execution:
    • Funds are often allocated to various commands or units which might have their own budgetary freedom, leading to dispersed financial management across numerous entities. This decentralization can result in gaps in oversight.
  7. Reforms and Oversight Issues:
    • Despite reforms aimed at improving financial accountability, the implementation has been slow. Challenges include cultural resistance to change within the military, political dynamics that might prioritize other issues over financial reform, and the sheer bureaucratic inertia of such a large organization.
  8. Audit Readiness:
    • Although efforts have been made to enhance audit readiness, the DoD has struggled to ensure that all components are prepared with the necessary documentation and systems in place for a clean audit.