"Neither DOD nor Congress can reliably know how much the war is costing and details of how appropriated funds are being spent," the report to Congress stated. The GAO said the problem is rooted in long-standing weaknesses in the Pentagon's outmoded financial management system, which is designed to handle small-scale contingencies.
The report said the Pentagon overstated the cost of mobilized Army reservists in fiscal 2004 by as much as $2.1 billion. Because the Army lacked a reliable process to identify the military personnel costs, it plugged in numbers to match the available budget, the report stated. "Effectively, the Army was reporting back to Congress exactly what it had appropriated," the report said.
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