21 Trillion in Unauthorized Govt Spending

http://msutoday.msu.edu/news/2017/msu-scholars-find-21-trillion-in-unauthorized-government-spending-defense-department-to-conduct/

"undocumented  adjustments" may be the key to understanding what is called unauthorized government spending.  It depends on the definition of "Spending".  Buying something from the public sector with government funds is the implied meaning of "Spending".  Expending the value of something from government accounting records can be interpreted to mean "Spending". 

There are accounting documentation procedure rules for expending government owned material from accounting records with required authorization.  In the "Spending" of government funds, usually meaning procurement of public sector goods and services, the "Expending" of the value of purchased goods and services is a lesser management attention priority.  Especially for high priced assets.  Investigations would be required.  When resources are constrained what functions in support of Mission Accomplishment are going to be cut?  Procurement or performing required functions to account for goods and services already procured but their expenditure from record reasons not adequately accounted for.

I am only familiar with Navy procedures having served a career in the Supply Corps.  At one time I was assigned a collateral duty to an IG inspection team.

Accounting for expenditure of things on accounting records with proper documentation regarding authorized reasons for expenditure is simply a neglected area of accountability.  It is wrong not to follow established procedures but it is a fact that failure to do so is prevalent.  Before every IG inspection the inspectors read the previous report of discrepancies and is one of the things on the check off lists that is examined to determine resolution actions that are required by follow up reports.

The same discrepancies can be traced back to a succession of the same past IG inspections.  The reports of progress in correcting the discrepancies are well written and look like resolution but the same fundamental problems continue. 

There is much more to say on this complex system of accounting.  The system is good.  Execution of established procedures is not.  Backwater procedures on the scale of importance to accomplishing "Mission Essential" functions suffer lack of attention. 

I salute the efforts of those at MSU.  I graduated from that college.  I would like to have been involved in their investigation.

Well Done.

Your findings will join a volume of findings on the same problems that will continue to be neglected.

Perhaps the solution is in Blockchain accounting for High Value Line Items or High Value categorical adjustments.  Arriving at a new assignment to a Navy Supply Center I expended a maybe a million dollars of coffee from the records because it was not found in the warehouse.  It had been a long term uncorrected inventory error.  It was during the Vietnam period.  I don't recall the Admiral had to sign off on it although standing procedures were that he had to sign off on any procurements over a certain dollar value. 

The non existent coffee was simply written of the records.  That was nothing compared to what was written off the records during my 1 year in country Vietnam tour.  Primary mission and its accomplishment comes first.  Not the way it should be of course.  Disposal of excess material is in the same situation but I did my best to correct that one.  We were disposing of excess material at the same time it was being ordered.