Government auditor concerned about ‘financial management weaknesses’ as debt ceiling crisis looms
Misty Severi
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The Government Accountability Office said Thursday that it could not issue an opinion on the reliability of the U.S. government’s consolidated financial statements as the debt ceiling crisis looms.
Gene Dodaro, the U.S. comptroller general and head of the GAO, said it was especially concerning that the agency could not issue an opinion because there are domestic and international challenges that face the U.S. government. These include the debt ceiling crisis, climate crisis and immigration crises, and aid for Ukraine.
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“It’s essential that the federal government has complete and accurate financial information, both across the government and within each agency, to operate as effectively and efficiently as possible,” Dodaro said in a press release. “While the federal government has made significant strides in improving its financial management, this year’s audit report emphasizes the need for the government to address these serious financial management weaknesses and for Congress to develop a plan to put the government on a path toward long-term fiscal sustainability.”
Dodaro said the problem falls on several different government agencies, including the Department of Defense’s long-standing financial management problems, the Department of Education’s troubles with its loan programs, the Small Business Administration’s problems with its financial management in its pandemic relief aid, and more.
There was also a lack of accounting for transactions between government agencies, according to the press release.
The report this year examined the unprecedented steps the federal government needed to take following the COVID-19 pandemic to help limit economic burdens on U.S. residents. As a result, the U.S. debt is growing faster than the gross domestic product, “which means that current policy is unsustainable,” the 2022 financial report said.
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The United States reached its debt limit in January and will need to raise the ceiling in order to pay off its loans. If Congress does not come up with a solution to repay the loans by the summer, the U.S. will default on its loans for the first time in history.
The GAO recommended that Congress develop “a plan to put the government on a path toward long-term fiscal sustainability with well-designed fiscal rules and targets that can help manage debt by controlling factors such as spending and revenue.” It also encouraged the legislative branch to consider “alternative approaches” to the debt limit in more long-term plans.