I 
118TH CONGRESS 
1ST SESSION H. R. 2961 
To ensure that the Department of Defense achieves a clean audit opinion 
on its financial statements, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 27, 2023 
Ms. LEE of California (for herself, Mr. BURGESS, Mr. POCAN, Mr. BIGGS, Mr. 
HUFFMAN, Ms. HAGEMAN, Ms. TLAIB, Ms. SCHAKOWSKY, Mr. GARCI´A 
of Illinois, Mr. MCGOVERN, Mr. DESAULNIER, Ms. JAYAPAL, Mr. 
AUCHINCLOSS, Mr. GOSAR, Mr. GRIJALVA, and Mr. BOWMAN) introduced 
the following bill; which was referred to the Committee on Armed Serv-
ices 
A BILL 
To ensure that the Department of Defense achieves a clean 
audit opinion on its financial statements, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Audit the Pentagon 
Act of 2023’’. 
SEC. 2. FINDINGS. 
(1) The Pentagon failed it’s 5th consecutive 
Audit in November 2022. 
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(2) Upon failure of this audit, the DoD was un-
able to account for hundreds of billions of dollars, 
accounting for 61 percent of it’s $3.5 trillion in as-
sets. 
SEC. 3. SENSE OF CONGRESS. 
It is the sense of Congress that— 
(1) as the overall defense budget is cut, the 
congressional defense committees and the Depart-
ment of Defense should not endanger the Armed 
Forces by reducing wounded warrior accounts or 
vital protection (such as body armor) for members 
of the Armed Forces serving in harm’s way; 
(2) the valuation of legacy assets by the De-
partment of Defense should be simplified without 
compromising essential controls or generally accept-
ed government auditing standards; and 
(3) nothing in this Act should be construed to 
require or permit the declassification of accounting 
details about classified defense programs, and, as re-
quired by law, the Department of Defense should en-
sure financial accountability in such programs using 
proven practices, including using auditors with secu-
rity clearances. 
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SEC. 4. DEPARTMENT OF DEFENSE SPENDING REDUC-
TIONS IN THE ABSENCE OF AN UNQUALIFIED 
AUDIT OPINION. 
(a) IN GENERAL.— 
(1) REDUCTIONS.—If, during any fiscal year 
after fiscal year 2022, the Comptroller of the De-
partment of Defense fails to certify to Congress that 
a department, agency, or other element of the De-
partment of Defense has achieved an unqualified 
opinion on its full financial statements, the amount 
available for such department, agency, or element 
shall be reduced— 
(A) for the fiscal year during which such 
determination is made, by an amount equal to 
0.5 percent; and 
(B) for any subsequent fiscal year during 
which such determination is made, by an 
amount equal to 1.0 percent. 
(2) APPLICATION
OF
REDUCTIONS.—For any 
fiscal year for which a reduction is made pursuant 
to paragraph (1) for a department, agency, or ele-
ment, the amount of the reduction shall be applied 
on a pro rata basis against each program, project, 
and activity of such department, agency, or element 
for that fiscal year. 
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(3) USE OF REDUCED AMOUNTS.—The amount 
of any reduction made under paragraph (1) shall be 
deposited in the General Fund of the Treasury and 
shall be available for purposes of deficit reduction. 
(b) ACCOUNTS EXCLUDED.—The following accounts 
are excluded from any reductions under subsection (a): 
(1) Military personnel, reserve personnel, and 
National Guard personnel accounts of the Depart-
ment of Defense. 
(2) The Defense Health Program account of 
the Department of Defense. 
(c) WAIVER.—The President may waive subsection 
(a) with respect to an account if the President— 
(1) certifies that the application of such sub-
section to that account would— 
(A) negatively affect the national security 
of the United States or members of the Armed 
Forces who are deployed in combat zones; or 
(B) affect the Defense Health Program ac-
count; and 
(2) submits to the Committee on Appropria-
tions and the Committee on the Budget of the 
House of Representatives and the Committee on Ap-
propriations and the Committee on the Budget of 
the Senate a report on such waiver that includes a 
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description of the specific activities that would be af-
fected and why such activities are essential to the 
national security of the United States. 
(d) REPORT.—Not later than 60 days after a reduc-
tion takes effect under subsection (a), the Director of the 
Office of Management and Budget shall submit to Con-
gress a report specifying each department, agency, or 
other element of the Department of Defense subject to re-
duction and the amount of the reduction. 
(e) DEFINITIONS.—In this section: 
(1) The terms ‘‘financial statement’’ and ‘‘ex-
ternal independent auditor’’ have the meanings given 
those terms in section 3521(e) of title 31, United 
States Code. 
(2) The term ‘‘unqualified’’, with respect to the 
audit status of a financial statement, includes the 
characterizations clean and unmodified. 
Æ 
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