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Posts Tagged ‘audit’

Dailywire Article – Agencies, Congress Didn’t Even Try To Stop Fraud In $4T Coronavirus Bailout, Audit Finds

Posted by M. C. on February 2, 2023

Health is their main concern, but who’s?

By  Luke Rosiak

Alan Schein Photography / The Image Bank / Getty Images

Not only did the glut of coronavirus-tied bailouts likely result in billions of dollars of fraud, but it happened because government agencies in many cases did not take even basic steps to prevent it, and in other cases have declined to try to claw back improper payments, the Government Accountability Office said Wednesday.

In a searing, comprehensive report, the nonpartisan auditing arm of Congress excoriated the administration of almost every pandemic-era spending program—and Congress itself—for doling out $4.6 trillion with the prospect of fraud seemingly an afterthought.

Three years after the pandemic began, rampant fraud turned out to be very much a reality.

Unemployment fraud. Coronavirus-era programs flooded cash into a program that already has one of the government’s highest rates of improper payments: unemployment checks. Non-coronavirus unemployment checks already had an improper payment rate of nearly 19% in fiscal year 2021 and more than 22% in 2022. Coronavirus programs flooded this with even easier access to even more cash, with $873 billion in checks to people who said they were laid off or had hours reduced because of coronavirus. In the best-case scenario–that coronavirus unemployment checks were no more fraudulent than the lower 2021 non-coronavirus value–“at least $163 billion in pandemic UI benefits could have been paid improperly,” the GAO said.

And that’s likely a vastly optimistic scenario, because the coronavirus unemployment program “allowed applicants to self-certify their eligibility and did not require them to provide any documentation of self-employment or prior income.” The Department of Labor, which administers the program, also encouraged states to waive a standard 21-day waiting period—the period in which anti-fraud scrutiny often occurs.

Even as it dramatically loosened controls on a program that already had an atrocious rate of improper payments, the Department of Labor did not have a dedicated fraud unit in place, and more than two years after the GAO first warned of the problem in October 2021, DOL said it was merely “in the process” of “proceeding with implementing” the recommendations—long after the pandemic has ended, according to the GAO.

PPP loans. The most prominent coronavirus bailouts—forgivable PPP and EIDL loans for businesses—were administered by the Small Business Administration, which did not even set up an anti-fraud entity until after the program was done giving out money, GAO said.

“SBA did not designate a dedicated antifraud entity until February 2022. This new entity—the Fraud Risk Management Board—is to oversee and coordinate SBA’s fraud risk prevention, detection, and response activities. Further, in March 2021, we found that SBA had not conducted fraud risk assessments for PPP and the COVID-19 EIDL program and recommended that it do so. When SBA developed its fraud risk assessments for the programs in October 2021, PPP had already stopped accepting new applications and the COVID-19 EIDL program would stop at the end of that year,” it wrote.

EIDL. PPP and EIDL together paid out nearly $1 trillion. Yet Congress explicitly blocked SBA from using tax returns to verify a business’s eligibility for EIDL loans, even though it is a highly relevant piece of information. “As a result, SBA relied on self-certification,” GAO said.

GAO reviewed a sample of loans processed without consulting tax returns and found that “about half of them” should not have been approved.

See the rest here

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Sen. Schumer Says Ukraine Aid Will Be Included in Omnibus Bill – News From

Posted by M. C. on December 15, 2022

While more oversight could increase accountability for the tens of billions being sent to Ukraine, it could also be used to justify more US involvement in the war.

More oversight? How about any oversight. The Pentagram doesn’t do oversight.

by Dave DeCamp

Senate Majority Leader Chuck Schumer (D-NY) said Tuesday that more funding for Ukraine would be included in an upcoming omnibus spending bill that Congress is looking to pass before the end of the year.

Congressional negotiators have been at odds over the final numbers of the spending bill, but Schumer said that he expects a deal will be reached soon. The White House has asked Congress to authorize $37.7 billion in Ukraine aid, which would bring total US spending on the war to about $105 billion.

Congress could authorize more funding for Ukraine than Biden requested, as they did before, but at this point, it’s not clear what the final number will be. Rep. Thomas Massie (R-KY), who opposes arming Ukraine, said the new aid should be put to a separate vote.

“This is wrong. We should have a separate vote on additional Ukraine funding. Most of my constituents do NOT wish to have their money sent to Ukraine, especially not without oversight or an audit,” Massie wrote on Twitter.

Massie joined Rep. Marjorie Taylor Greene (R-GA) in sponsoring a bill that would require an audit of all the funds the US has authorized for Ukraine. The resolution was voted down by the Democrat-led House Foreign Affairs Committee, but it received support from mainstream Republicans, and Greene said she will reintroduce the legislation when the GOP takes over the House.

While more oversight could increase accountability for the tens of billions being sent to Ukraine, it could also be used to justify more US involvement in the war. The Pentagon said in October that US military personnel based at the US embassy in Kyiv were conducting “onsite” weapons inspections in Ukraine, and NBC News reported this week the US was considering sending a small number of additional troops into the country to track arms.

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The Pentagon fails its fifth audit in a row – Responsible Statecraft

Posted by M. C. on November 26, 2022

Written by
Connor Echols

The Pentagon fails its fifth audit in a row

If the Defense Department can’t get its books straight, how can it be trusted with a budget of more than $800 billion per year?

“I would not say that we flunked,” said DoD Comptroller Mike McCord, although his office did note that the Pentagon only managed to account for 39 percent of its $3.5 trillion in assets.

Last week, the Department of Defense revealed that it had failed its fifth consecutive audit. 

“I would not say that we flunked,” said DoD Comptroller Mike McCord, although his office did note that the Pentagon only managed to account for 39 percent of its $3.5 trillion in assets. “The process is important for us to do, and it is making us get better. It is not making us get better as fast as we want.”

The news came as no surprise to Pentagon watchers. After all, the U.S. military has the distinction of being the only U.S. government agency to have never passed a comprehensive audit.

But what did raise some eyebrows was the fact that DoD made almost no progress in this year’s bookkeeping: Of the 27 areas investigated, only seven earned a clean bill of financial health, which McCord described as “basically the same picture as last year.”

Given this accounting disaster, it should come as no surprise that the Pentagon has a habit of bad financial math. This is especially true when it comes to estimating the cost of weapons programs.

The Pentagon’s most famous recent boondoggle is the F-35 program, which has gone over its original budget by $165 billion to date. But examples of overruns abound: As Sens. Jim Inhofe (R-Okla.) and Jack Reed (D-RI) wrote in 2020, the lead vessel for every one of the Navy’s last eight combatant ships came in at least 10 percent over budget, leading to more than $8 billion in additional costs.

And another major overrun is poised to happen soon, according to a recent report from the Congressional Budget Office. 

See the rest here

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Erie Times E-Edition Article-Some in GOP want audit of PA election like Arizona’s

Posted by M. C. on June 5, 2021

“Pennsylvania had a free and secure election.”-Comrade Wolf

What do you suppose the reaction would be from the IRS or PA treasury looking for an audit when you said “but it was a full and complete return, this is a disgrace to democracy”?

But Rep. Grove says it will not be authorized

J.D. Prose Pennsylvania State Capital Bureau USA TODAY NETWORK – PENNSYLVANIA

In the wake of a Republican legislative delegation’s visit to watch the partisan audit of Arizona’s election results, there could be a split among GOP leaders on whether to pursue a similar audit in Pennsylvania.

On Wednesday, state Sen. Doug Mastriano, R-Franklin County; state Sen. Cris Dush, R-Jefferson County; and state Rep. Rob Kauffman, R-Franklin County, were in Arizona to review that state’s election audit orchestrated by Senate Republicans unhappy that former President Donald Trump lost Arizona.

President Joe Biden won Pennsylvania by 80,555 votes, according to the

See AUDIT, Page 3A

Continued from Page 1A

Pennsylvania Department of State. Biden won Arizona by just under 10,555 votes.

Following the Arizona trip, Mastriano, a possible governor candidate in 2022 who organized a bus trip to Washington, D.C., on Jan. 6, but denies participating in the U.S. Capitol insurrection, called for an audit of certain counties during an appearance on the farright One America News Network, which has continually fueled conspiracy theories about the validity of the presidential election.

“I don’t think we really have an option. We probably have to do this in a couple counties. Let the chips fall where they may,” Mastriano said.

“This is not about overturning. It’s about finding the truth.”

Will an audit happen in Pa.?

The prospects for an audit happening in Harrisburg, though, appear hazy as two GOP leaders shared their thoughts after Mastriano’s trip.

State Sen. Dave Argall, R-Schuylkill County, the chairman of the Senate State Government Committee, told that, “We are still reviewing the pros and cons.”

However, state Rep. Seth Grove, RYork County, was clearly opposed to one in a Twitter post on Thursday.

“The PA House of Representatives will not be authorizing any further audits on any previous election,” Grove wrote.

“We are focused on fixing our broken election law to make it easier to vote and harder to cheat.”

Grove has led a series of hearings this year on the election and potential changes to the state’s election laws.

There is also a bipartisan special state Senate committee preparing a report on its findings after holding several election hearings.

Gov. Tom Wolf addressed the Arizona audit and a possible Pennsylvania one in a Friday morning tweet.

“What they’re calling for isn’t an ‘audit.’ It’s a taxpayer-funded disinformation campaign and a disgrace to democracy,” Wolf wrote.

“Pennsylvania had a free and secure election. That’s a fact. Pennsylvanians deserve better from their elected officials.”

Pennsylvania Attorney General Josh Shapiro, considered the Democratic front-runner for governor, went on MSNBC to decry the Arizona audit as a “sham.”

He said it is just the latest in the GOP’s effort to sow doubt on the 2020 election results, an effort he said led to the deadly Jan. 6 attack on the Capitol.

“This now the next chapter in that, continuing to perpetuate the big lie and then pushing forward legislation and these sham audits in various states to try and make it harder for peoples voices to count,” Shapiro told MSNBC’s Nicolle Wallace.

“If they try and bring this nonsense, this sham audit, to Pennsylvania, they’ll have to go through me,” he said, “and every time they’ve tried to take me on when it comes to voter enfranchisement, or in their case voter disenfranchisement, they’ve lost and I’ve won and we’ve protected the people of Pennsylvania.”

J.D. Prose is a reporter with the USA TODAY Network’s Pennsylvania State Capital Bureau. He can be reached at

‘We probably have to do this in a couple counties. Let the chips fall where they may,” state Sen. Doug Mastriano said on the OAN Network about an Arizona-style audit of Pennsylvania’s presidential election results. DAN RAINVILLE/THE EVENING SUN

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Pentagon Fails Its First-Ever Audit – News From

Posted by M. C. on November 16, 2018

The secrets remain hidden. Mission accomplished…for a change.

Jason Ditz

After generations of being a black hole down which money goes, never to return, a team of 1,200 auditors tried to give the Pentagon its first ever comprehensive audit, just to see where all that money went. Unsurprisingly, it went poorly, and was declared a failure.

How bad the failure was is something of a mystery at this point, with officials refusing to disclose the exact results, or even ballpark how much money is unaccounted for. The only clue to the sheer scope of the matter is that they believe it will take “years” to sort out…

Indeed, Shanahan insisted that even though the Pentagon failed the audit, the fact that they even bothered to do an audit at all “is substantial,” and shows effort toward compliance. That said, he said the issue of audits is “irritating to me.”

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War Is A Racket

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The Pentagon Has Avoided Audit For 27 Years | The American Conservative

Posted by M. C. on November 18, 2017

The Pentagon has what Al Capone could only wish for. That doesn’t stop the government from auditing, fining, jailing the poor taxpaying slobs that support the pentagram.

 But how indeed does this money get spent? An open secret in Washington is that the Pentagon, by far the largest if not most byzantine agency in the federal government, has never been audited. Sure, Congress mandated in 1990 that it be audited, but not surprisingly, the leviathan agency never complied, with no consequences to speak of. Reports abound about bureaucracy, contractor pushback, and at least one “historic” Marine Corps audit in 2015 that turned out to be less than thorough due to internal politics. Bottom line, the audits just aren’t happening. 

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