[HN Gopher] Pentagon fails audit for sixth year in a row
       ___________________________________________________________________
        
       Pentagon fails audit for sixth year in a row
        
       Author : TurkishPoptart
       Score  : 208 points
       Date   : 2023-11-17 16:52 UTC (6 hours ago)
        
 (HTM) web link (breakingdefense.com)
 (TXT) w3m dump (breakingdefense.com)
        
       | moose44 wrote:
       | > While there are still three outstanding audits not yet wrapped
       | up, the DoD reported that the remaining 18 failed, including the
       | Defense Advanced Research Projects Agency and National Security
       | Agency.
       | 
       | Here's my surprised face: - _ -
        
       | Mistletoe wrote:
       | Can anyone explain to me why it is awful for a person to live in
       | debt but it is okay for the federal government to do so? I've
       | never understood this in the least, other than the "kick the can
       | down the road, America superpower backed by military blah, blah,
       | blah" very weak argument. History is full of the carnage of
       | failed empires that had this same idea.
       | 
       | https://fred.stlouisfed.org/series/GFDEBTN
       | 
       | 32 trillion in debt seems insurmountable, has anything like this
       | ever reversed course historically?
        
         | kaesar14 wrote:
         | I don't think it's 'awful' for a person to live in debt. The
         | richest Americans have loads of debt. A significant part of the
         | American Dream is to own a house which is essentially debt.
         | Perhaps the argument is more about whether the US government is
         | drowning in debt more akin to CC debt (bad debt) or mortgage
         | debt (good debt) but in the abstract, leverage is a perfectly
         | fine thing for a government to use in order to fund its
         | development.
        
           | nxm wrote:
           | Debt is also how economies and a lot of companies grow
        
             | HideousKojima wrote:
             | They could also grow by saving and reinvesting
             | surpluses/profits
        
               | intotheabyss wrote:
               | The entire point of debt is to bring future revenue to
               | the present so that you don't have to wait for savings to
               | trickle in every year.
        
               | HideousKojima wrote:
               | At the cost of some portion of your future revenue
        
               | airstrike wrote:
               | and if that future revenue is N times greater than you
               | would otherwise get without debt, then it's still better
               | to take on debt.
               | 
               | Would you rather have 90% of $1M or 100% of $800k?
        
               | HideousKojima wrote:
               | >if
               | 
               | That single word is doing all of the heavy lifting for
               | you. "If" the housing market will never crash, then it's
               | a surefire safe investment! Better buy tons of houses to
               | flip on credit. There's no guarantee that your
               | debt/investment will succeed, which is why banks try (and
               | often enough, fail) to price in risk with things like
               | varying interest rates, collateral, etc.
        
               | grotorea wrote:
               | AFAIK the standard economic opinion is that this is
               | suboptimal and leads to underinvestment.
        
               | scatters wrote:
               | No, they couldn't. One person's savings is another
               | person's debt. If everyone tries to save then no one can;
               | this is the paradox of thrift.
        
               | HideousKojima wrote:
               | https://en.m.wikipedia.org/wiki/Paradox_of_thrift#Critici
               | sms
               | 
               | Just because someone gives it a formal name doesn't mean
               | it's true.
               | 
               | >One person's savings is another person's debt.
               | 
               | Only if you treat fiat currency (or bank deposits in
               | general, the paradox you mention was formulated long
               | before we got off the gold standard) as the only possible
               | form of savings.
        
           | logicchains wrote:
           | The American dream is to "own" a house, not to own a
           | mortgage.
        
             | anon291 wrote:
             | You do not own a mortgage. You have sold a mortgage.
        
         | digitalengineer wrote:
         | Small correction: it's awful for a _poor_ person to live in
         | debt. If you are quite wealthy there are lots of ways to borrow
         | money and it's all good!
        
           | logicchains wrote:
           | >If you are quite wealthy there are lots of ways to borrow
           | money and it's all good!
           | 
           | If you have a negative net worth (more debt than assets)
           | you're generally not considered a wealthy person.
        
             | fbdab103 wrote:
             | Perception is everything. For quite a while, Sam Bankman-
             | Fried was billions in the hole, but could still secure more
             | funds on demand.
        
             | thaumasiotes wrote:
             | > If you have a negative net worth (more debt than assets)
             | you're generally not considered a wealthy person.
             | 
             | That's only true if your debt and assets are both small. If
             | you have $200 million in assets and $500 million in debt,
             | you will be considered a wealthy person. You would only
             | stop being wealthy if your stuff got taken away.
        
             | mikeyouse wrote:
             | There's no meaningful sense in which the Federal Government
             | could be considered to have a negative net worth.. they
             | have a 'stake' in the collective value of the largest and
             | most vibrant economy on earth. People's conception of the
             | Federal 'balance sheet' as limited to the dollars in bank
             | accounts explains why they are continually surprised that
             | $30+ trillion in debt is shrugged off by the market and
             | every knowledgeable economist.
        
             | grotorea wrote:
             | How would you even calculate the asset value for a
             | government? Normally you'd compare it to GDP which is
             | something else.
        
         | teaearlgraycold wrote:
         | So I don't know if what the government is doing is the best
         | long term decision. But the US's national debt could be
         | compared to a mortgage. And the government's income is massive
         | so they can be in trillions of debt without it exceeding what
         | they can reasonably pay off (never paying it all off, but
         | paying off individual loans).
         | 
         | So by your analogy, is it actually bad for a normal person to
         | be in debt? Normal people have mortgages.
        
           | askonomm wrote:
           | Has the number ever decreased? As in, have they actually paid
           | things off? Without actual numbers, U.S feels increasingly
           | like a high-school bully who borrows money and then threatens
           | with violence when that money is wanted back.
        
             | l33t7332273 wrote:
             | I don't think US really threatens violence when people
             | collect on the public debt. This is quite rare historically
             | because it makes people weary to lend you money.
             | 
             | Payments, including interest, are regularly made and of
             | course individual debts are paid all the time.
        
             | buerkle wrote:
             | The only time the US was debt free was a few years during
             | Andrew Jackson's presidency.
        
             | macintux wrote:
             | We were paying it off at the end of the 90s, some
             | projections had the debt paid off in 10 years, but then
             | Bush 2.0's tax cuts and 9/11 wrecked everything.
             | 
             | (I could be off in some details, but I remember my despair
             | when Greenspan gave Congress cover for supporting the tax
             | cuts by testifying that it wasn't necessarily a good thing
             | to be debt-free.)
        
             | metabagel wrote:
             | A better question is whether the percentage of debt to GDP
             | has ever decreased, and it has.
             | 
             | https://fred.stlouisfed.org/series/GFDEGDQ188S
        
         | uticus wrote:
         | asking about state-level debt gets into philosophical (and I
         | would argue even religious) territory very quickly, but to
         | answer your questions:
         | 
         | 'why...it is okay for the federal government...' federal govt
         | in US is following general patterns at business and individual
         | scale, because democratic processes lead to a reflection of
         | decisions at smaller elements of society at bigger ones.
         | 
         | '...ever reversed course historically?' no reversals, but
         | plenty of upheavals, such as war, conquering, etc.
        
         | HideousKojima wrote:
         | Most explanations I've seen boil down to to "The US (or any
         | other sovereign nation with control over their own currency)
         | can print their way out of debt, it's literally impossible for
         | the US to default." This ignores the devastating economic
         | effects that printing such a huge amount of currency would
         | cause (likely comparable to the effects of simply defaulting)
         | and ignores the fact that sovereign nations with control over
         | their own currency have chosen to default anyway (see Russia
         | ~20 years ago for an example).
        
           | dragonwriter wrote:
           | > Most explanations I've seen boil down to to "The US (or any
           | other sovereign nation with control over their own currency)
           | can print their way out of debt, it's literally impossible
           | for the US to default."
           | 
           | Its impossible for the US to be forced to default.
           | 
           | Its quite possible for the US to make a political choice to
           | default, and it has come very close to doing so.
        
             | evancox100 wrote:
             | Also, not only is it possible, but many countries have in
             | fact chosen to default on debt denominated in their own
             | currency, rather than subject their citizens to wild
             | inflation and/or break norms around reserve bank
             | independence. So, it could happen even if US is not forced
             | to, I agree.
             | 
             | For a starting point, see https://www.bankofcanada.ca/wp-
             | content/uploads/2020/06/BoC-B...
        
           | scatters wrote:
           | The Russian rouble was not free floating prior to the crisis.
           | They tried to defy the iron triangle and paid for it. This is
           | not a problem for the USA, since other currencies are
           | denominated in terms of the dollar.
           | 
           | The reason it would be impossible for the US to default is
           | that the US is not significantly in debt. Most of the federal
           | debt is held domestically, meaning by the US. You can't be in
           | debt to yourself.
        
             | HideousKojima wrote:
             | >Most of the federal debt is held domestically, meaning by
             | the US. You can't be in debt to yourself.
             | 
             | Sure, we can just inflate away the Social Security fund,
             | but do you think the effects of this would be better or
             | worse than simply defaulting? And nevermind the political
             | optics of "We still paid what we owed to China but magic
             | wanded away the debt to Grandma!"
        
         | DrNosferatu wrote:
         | That's the Fallacy of Composition - the economics of a
         | government are not the economics of a grocery store or a
         | household:
         | 
         | https://amp.theguardian.com/business/2013/nov/21/post-crash-...
        
           | ahallock wrote:
           | But imagine if they were. Wars and other destructive
           | behaviors would be a lot more difficult
        
           | uticus wrote:
           | Sorry, but 'Fallacy of Composition' is just a theory.
           | (Disclaimer: I happen to disagree with it.)
           | 
           | Ultimately the way these ideas about economic theory are
           | approached is a lot more philosophical/religious-based (for
           | the Atheists, please read that 'strong belief-based') and a
           | lot less math based than some would be willing to admit.
           | Honestly the math itself is usually statistical, which in
           | turn is a lot more difficult to comprehend and analyze
           | properly.
        
             | HFguy wrote:
             | I would put aside statistics and whether we completely
             | understand how the economy works (we don't).
             | 
             | Just ask...are there are very fundamental differences
             | between the finances of an individual and the government?
             | There are. For starters, the government can simply print
             | money and pay off debts. They can also choose, by their
             | actions, to inflate away nominal liabilities.
             | 
             | So then it is reasonable to consider that "being in debt"
             | may have different ramifications for the government than
             | for an individual.
        
               | uticus wrote:
               | > may have different ramifications for the government
               | than for an individual
               | 
               | I can only agree ramifications look different when an
               | inappropriately narrow timespan is in focus. Thinking
               | through history, what nations have been able to
               | ultimately avoid ramifications from significant debt -
               | the same sort of scenario that would in proportion cause
               | 'ramifications' for individuals or businesses?
               | 
               | I can think of several historical instances where a
               | nation having significant debt _appeared_ to have no
               | 'ramifications' early on but were unable to avoid the
               | inevitable (and inenviable) outcomes.
               | 
               | I mean, even an individual may get deeply - horribly - in
               | debt yet avoid ramifications for a time. But the bills
               | will come due. No doubt a government is not the same
               | thing as a business or an individual. But to dismiss
               | government debt as playing by different rules than debt
               | elsewhere is foolish.
        
             | DrNosferatu wrote:
             | "Just a Theory"?
             | 
             | It's actually central economic thought. If you disagree,
             | it's on you to prove otherwise.
             | 
             | Governments can print currency, create taxes - actually
             | inter generational (government bonds). Households cannot.
             | 
             | Economist Mark Blyth explains it quite clear:
             | 
             | http://gesd.free.fr/blythsenate.pdf
        
         | ahallock wrote:
         | You can leverage debt as an individual as well. We often shame
         | people for bankruptcies when we shouldn't. Businesses fail all
         | the time and go bankrupt -- running a household is similar and
         | can fail.
        
           | HideousKojima wrote:
           | Barring difficult to foresee circumstances like an expensive
           | medical procedure, a debilitating injury/illness, or a
           | devastating lawsuit, most of the circumstances that lead to a
           | household going bankrupt are directly attributable to
           | mismanagement.
        
         | dragonwriter wrote:
         | > Can anyone explain to me why it is awful for a person to live
         | in debt but it is okay for the federal government to do so?
         | 
         | Not sure its awful for a person, depending on the kind of debt,
         | but people and the government are differently situated. For
         | one, people (natural or corporate) who have a debt in something
         | that isn't a token that they can issue at will have an
         | externally enforced obligation to do whatever is necess5 to
         | acquire those tokens and sacrifice whatever is necessary to
         | deliver them to the creditor.
         | 
         | Currency-issuing governments with debt in their own currency
         | have an obligation to... ultimately, if nothing else works or
         | is desirable, just poof up some currency.
         | 
         | Also, for certain governments, there isn't a vastly more
         | powerful external enforcer of whatever obligation they have,
         | whereas with most people, there is, in the form of the local
         | government.
        
         | DougWebb wrote:
         | I'm hardly an expert, but I think "government debt" and
         | "government investment" are accounted for the same way, but
         | only the former is a problem. If the government sells
         | bonds/T-bills (eg acquires debt) and uses that to improve the
         | country in a way that benefits the citizens and encourages
         | population and economic growth, then its worth doing. If the
         | government uses the money only to pay interest on existing
         | debt, or to give it away to make wealthy citizens more wealthy,
         | or other unproductive uses, then it's not so good.
         | 
         | The attacks directly on the national debt are a political
         | strawman, meant to distract from the real issues about where
         | revenue comes from and how it is spent. It's like the constant
         | debt ceiling wailing; Congress sets a budget and legislation
         | that requires spending more than the revenue available, then
         | sets a debt ceiling that prevents the treasure from borrowing
         | to cover the _required by law_ spending, then bitches and moans
         | and grandstands over how the debt ceiling creates a crisis. It
         | 's all for show.
        
           | TimedToasts wrote:
           | > The attacks directly on the national debt are a political
           | strawman, meant to distract from the real issues about where
           | revenue comes from and how it is spent.
           | 
           | No, I assure you that those of us concerned about the
           | national debt are actually concerned about it.
        
         | nradov wrote:
         | It's not awful for a person to live in debt. Debt is a useful
         | financial tool.
         | 
         | Unlike a person, a government has an unlimited lifespan and
         | debt can persist forever. This only becomes a concern when
         | total debt exceeds some multiple of GDP. The exact limit will
         | vary based on many factors including interest rates, economic
         | growth rate, demographics, and tax compliance. Once that limit
         | is breached it tends to cause a fiscal and political crisis
         | within a few years. Either default or hyperinflation in the
         | short term, followed by a long period of austerity.
        
           | dragonwriter wrote:
           | > This only becomes a concern when total debt exceeds some
           | multiple of GDP. The exact limit will vary based on many
           | factors including interest rates, economic growth rate,
           | demographics, and tax compliance. Once that limit is breached
           | it tends to cause a fiscal and political crisis within a few
           | years.
           | 
           | This is the kind of theory that, without a concrete model of
           | how the limit varies (or even with one, if it involves much
           | statsitical variability) is nonfalsifiable, either because
           | the probability of a crisis in actual concrete conditions is
           | unknown or the range of variability is too wide to make
           | strong conclusions given the small-n problem with real-world
           | conditions, but at the same time becomes very easy to
           | rationalize almost any real-world conditions as fitting.
        
         | intalentive wrote:
         | Depends on the productivity of the country and whether the debt
         | can be exported (as reserve currency) or monetized (as
         | inflation). The USA checks all these boxes for now. Highly
         | productive and the costs can be passed on to others.
         | 
         | Otherwise you are correct. Zimbabwe certainly has to live
         | within its means.
        
         | TacticalCoder wrote:
         | > 32 trillion in debt seems insurmountable, has anything like
         | this ever reversed course historically?
         | 
         | Never and it is insane that there are apologists for such a sad
         | state of affairs.
         | 
         | https://www.usdebtclock.org/
         | 
         | This is not going to end well. That's what happen when totally
         | clueless, incompetent and senile people are pulling the levers,
         | following the advices of visionaries like Paul _" it will
         | become clear that the Internet's impact on the economy has been
         | no greater than the fax machine's"_ Krugman.
         | 
         | > https://fred.stlouisfed.org/series/GFDEBTN
         | 
         | What is insane on that graph is that it doubled in ten years
         | and quadrupled in 15 years.
         | 
         | Anyone who thinks this is reasonable is simply out of his mind.
        
           | uticus wrote:
           | The numbers are just outside comprehension. We can comprehend
           | a dollar, or a hundred dollars, in the hand. We may be able
           | to imagine (or have seen) a room full of a couple tens of
           | thousands of dollars. But to extrapolate one, to 32 trillion
           | of the same...
           | 
           | If a 4 GHz processor core executes an instruction every clock
           | cycle, it would still take two _hours_ to iterate that
           | instruction 32 trillion times.
           | 
           | If you lined up 32 trillion inches, it would be over 505
           | _million_ miles.
           | 
           | If a dollar bill is 0.1 millimeters thick, and you stacked 32
           | trillion of the bills on top of each other, the stack would
           | be almost 2 _million_ miles high.
           | 
           | Etc
           | 
           | By the way, we went past $33 trillion in September, and
           | reached $33.5 20 days later. Only a half trillion added in 20
           | days.
        
         | jmyeet wrote:
         | People like to use the household analogy when it comes to
         | government spending and debt. Some cynically do it to justify
         | cutting social programs. Some (and I include you here) are
         | genuinely confused.
         | 
         | First, literally nobody in government cares about the debt. Of
         | the $32T debt in our entire history, $8T comes from the 4 years
         | of the Trump presidency. Remember that when the next fiscal
         | hawk starts chirping about the need to cut spending.
         | 
         | Second, debt doesn't matter when you can print money in the
         | currency the debt is denominated in. We borrow US dollars. We
         | print US dollars. So if we'rea household who has to pay out
         | build you can't ignore it fact that we have a money printer in
         | the next room.
         | 
         | There have been sovereign currency devaluations in the past
         | too, famously by FDR who changed the gold standard.
         | 
         | I would suggest looking up videos on Modern Monetary Theory.
        
         | _jal wrote:
         | To start with, individuals do not print their own currencies.
         | People always jump in immediately to say you can't inflate your
         | way out of debt/look at Argentina/etc., but that's missing the
         | point, I'm not saying that.
         | 
         | The point is a sovereign currency issuer has a fundamentally
         | different relationship to money than mere people. They can
         | certainly still get themselves in trouble through
         | mismanagement, no doubt, but there are a lot of levers they
         | have that are unavailable to normal folks.
         | 
         | Like some other major differences: not too many people have
         | massive standing armies or hundreds of millions of tax payers,
         | or control over a substantial fraction of global financial
         | flows.
         | 
         | Again, not saying eleventy-trillion in debt is not a problem,
         | or that all's well, or anything else like that. I am saying
         | that comparing private finance to sovereign finance is a
         | category error, and things will make much more sense to you if
         | you understand why.
        
         | smileysteve wrote:
         | > it is awful for a person to live in debt
         | 
         | Is an interesting premise when data is
         | 
         | > American households carry a total of $17.29 trillion in debt
         | as of the third quarter of 2023, and the average household debt
         | is $103,358 as of the second quarter of 2023.
        
         | dragonwriter wrote:
         | > 32 trillion in debt seems insurmountable, has anything like
         | this ever reversed course historically?
         | 
         | If you look at output or income relative, instead of
         | meaningless absolute nominal terms, yes, in fact, the _current_
         | US debt to to GDP ratio and debt to revenue ratios are a _drop_
         | from the recent peak--a result of exactly the kind of reversal
         | of course you are asking about.
        
       | nradov wrote:
       | It's important to understand the history here. Failing the audit
       | isn't necessarily due to some sort of fraud or abuse (although
       | there likely are isolated instances). The problem is that for
       | decades Congress never allocated funds to put proper financial
       | controls in place so naturally the accounting systems are a
       | disconnected jumbled mess. When they started annual audits
       | everyone knew they would fail so that was no surprise. The point
       | is to make gradual improvements every year until they can
       | eventually pass.
        
         | edgyquant wrote:
         | Yeah but with that in mind it's a good thing that new outlets
         | roll with this "failed audit" as it puts pressure to constantly
         | be trying to do better and this slowly helps to rule out
         | corruption or incompetence
        
         | BiteCode_dev wrote:
         | Sure, let me use that excuse with the IRS and this how it
         | works.
        
           | l33t7332273 wrote:
           | IRS exists to give those organizations money, so they're more
           | of a client and you're more of a product.
        
             | malux85 wrote:
             | Product is a very diplomatic way of saying Lunch
        
             | warkdarrior wrote:
             | Not quite. The money is the product of the IRS, you and I
             | are the raw materials from which the money is produced.
        
           | vkou wrote:
           | You're going to make the excuse that your company's
           | accounting mess is because you founded it before the IRS
           | existed?
           | 
           | Good... Luck with that.
        
         | Analemma_ wrote:
         | > The point is to make gradual improvements every year until
         | they can eventually pass.
         | 
         | The Pentagon has been on the GAO's "high risk audit failures"
         | list since 1995 [0]. Exactly how much longer do we need to
         | wait? And at what point can we start to assume they don't
         | intend to ever actually fix the problem?
         | 
         | [0]: https://www.gao.gov/products/gao-23-105784
        
           | nradov wrote:
           | What are you proposing exactly? Hire more accountants? Shut
           | down the military until they pass an audit?
        
         | uticus wrote:
         | appreciate this viewpoint.
         | 
         | not trying to defend the large 'disconnected jumbled mess' that
         | is military spending, but headlines (and large percentage of
         | armchair commentators) make it sound like 'see, told ya so!'
         | when in fact this audit is the weakest basis for an argument
         | that military spending has no oversight, gets too much, etc.
         | 
         | note that i'm _agreeing_ there needs to be more oversight, less
         | spending, etc. but this audit is not going to serve persuading
         | that.
        
         | mbfg wrote:
         | incompetence is fraud, when displayed over time.
        
         | marricks wrote:
         | Eisenhower warned this would be a thing and here we are, it's a
         | thing. The best we will ever get is the illusion of spending
         | being under control.
         | 
         | It's wild, but whenever a big change occurs there's always
         | smart folks who knew what was going to happen and exactly
         | called it out. Usually as a "ok guys be careful cause X could
         | happen" and X inevitably does.
        
           | pstuart wrote:
           | Equally wild is when "fiscal conservatives" complain about
           | spending, it's _only_ on social programs they disagree with.
           | 
           | Fraud and/or waste should be a subject of concern
           | _regardless_ of the program that experiences it.
        
             | ryandrake wrote:
             | I wouldn't pin this on any particular party or ideology.
             | Both major parties in the USA support dumping infinite
             | unaccountable money into the military. It's one of the few
             | things they agree on.
        
               | metabagel wrote:
               | There are a fair number of dissenters on this within the
               | Democratic Party.
        
             | marricks wrote:
             | The government isn't a household and its finances don't
             | need to be treated as one. I think everyone in government
             | knows this they just don't want constituent's to realize it
             | so they hem and haw about any spending they don't like.
             | Neither side super cares about social programs, dems just
             | aren't the ones to cut them typically.
             | 
             | If you notice, whenever dems have launched a plan in the
             | past 30-40 years they always say how it's almost always
             | going to be "deficit neutral" or help because they actually
             | don't want to increase spending (or help people all that
             | much, is my take).
             | 
             | Both sides have and will continue to green light defense
             | spending and other "important issues" so deficit goes up
             | anyways.
        
           | wolverine876 wrote:
           | When did Eisenhower warn about failed audits, or something
           | like them?
        
             | intalentive wrote:
             | His farewell address warned of unaccountable military
             | bureaucracy.
        
             | metabagel wrote:
             | He warned about the military industrial complex swallowing
             | up funds which could be better used for schools or to
             | fulfill other public services.
        
           | nradov wrote:
           | Eisenhower might have warned about it but he apparently never
           | asked Congress to appropriate funds for modernizing the
           | Department of Defense accounting systems. Had he done so they
           | wouldn't be such a mess today.
        
             | Arrath wrote:
             | I mean, the COBOL accounting systems being discussed were
             | developed and put in place after his term, no? So they are,
             | in fact, more modern than they would have been during
             | Eisenhower's time.
        
         | sp332 wrote:
         | Last year the DoD's CFO Mike McCord said "I am disappointed
         | that we didn't show more progress this year"
         | https://news.yahoo.com/pentagon-disappointed-failed-audit-ag...
         | And this year he said "Things are showing progress, but it's
         | not enough". https://www.reuters.com/world/us/pentagon-fails-
         | audit-sixth-... The improvements are too gradual.
        
       | Iwan-Zotow wrote:
       | Ha ha
        
       | kgwxd wrote:
       | Duh. You can't just put "classified alien technology R&D" as a
       | clear-text line item. Just trust them, it's all going towards
       | national, even global, security.
        
         | mike_hock wrote:
         | "What, do you think we spent 10 grand on a fire extinguisher?"
        
           | Kon-Peki wrote:
           | Large fire extinguishers are high-pressure cylinders that
           | require high-precision valves. There are fewer than 10
           | manufacturers in the world that can do it - half of them are
           | in the US and the DoD will spend what it takes to keep it
           | that way.
           | 
           | You wouldn't want to end up like the EU and not have a single
           | manufacturer that can do it, or (since Brexit) not have any
           | that are legally allowed to import them. It's a good thing
           | they can be refurbished when used, and that the authorities
           | look the other way when a shipment arrives from a 3rd
           | party...
        
         | walterbell wrote:
         | Since 2018, there's a separate, non-public accounting ledger
         | for national security items at 150 agencies. In theory, this
         | should improve public ledgers.
         | 
         | http://files.fasab.gov/pdffiles/handbook_sffas_56.pdf
         | The objective of this Statement is to balance the need for
         | financial reports to be publicly available with the need to
         | prevent the disclosure of classified national security
         | information or activities in publicly issued General Purpose
         | Federal Financial Reports (GPFFRs). This Statement allows
         | financial presentation and disclosure to accommodate user needs
         | in a manner that does not impede national security.
        
       | warner25 wrote:
       | Just to provide a ground-level insider perspective: We've been
       | doing things in the name of "audit readiness" for a decade, and I
       | just... don't get it. It has translated to a lot of asinine
       | things like
       | 
       | 1. Making sure that everyone's marriage certificates and kids'
       | birth certificates are on-file, to root out maybe the one person
       | in 10,000 who is erroneously getting paid an extra $200 per month
       | for certain entitlements.
       | 
       | 2. Making sure that when we sign leave forms (i.e. requests for
       | vacation time) we do so with a digital signature (even though
       | they got printed out for processing and archival) using a certain
       | image instead of a manual signature with a pen.
       | 
       | 3. Going through an absurdly painful process to put on the books
       | every physical piece of property we see (e.g. hand tools, step
       | ladders, obsolete radio and telephone equipment) and then account
       | for them on a monthly basis even if they've been useless and in
       | storage since the 1970s.
       | 
       | Meanwhile, I can see tens or hundreds of billions of dollars of
       | seemingly wasted man-hours on various initiatives (including
       | those listed above), unnecessary personnel moves / rotations, and
       | questionable purchases of new uniforms, equipment, vehicles,
       | software, etc.
        
         | wolverine876 wrote:
         | I'm not an insider, but those sound like generally hard-to-
         | avoid issues of large organizations, public and private,
         | profit-oriented and service-oriented. You can't manage that
         | many people, millions in DoD, without rules, and rules can't be
         | defined to apply well to the very wide variety of situations in
         | reality - just like an algorithm, they'll be inflexible. These
         | kind of gripes are, understandably, in every large
         | organization.
         | 
         | > 3. Going through an absurdly painful process to put on the
         | books every physical piece of property we see (e.g. hand tools,
         | step ladders, obsolete radio and telephone equipment) and then
         | account for them on a monthly basis even if they've been
         | useless and in storage since the 1970s.
         | 
         | On the upside, that provides one of the benefits of an audit:
         | Identifying wasted assets. I know the Army is focusing on
         | reducing the amount of useless equipment it warehouses.
        
           | justrealist wrote:
           | Stuff is cheap... there's been immense value in having tons
           | of old cheap assets to throw into Ukraine. And even if it
           | isn't dirt-cheap, there's value in maintaining industrial
           | military production capacity.
           | 
           | Corporations got incredibly fragile supply chains by
           | optimizing for JIT asset delivery, let's not repeat the
           | mistake with national defense. I don't want the US to run out
           | of vehicles, artillery shells, and spare uniforms 2 weeks
           | into a real war.
        
           | warner25 wrote:
           | Yeah, it just seems like we've spent an inordinate amount of
           | time on things that would either (1) save what amounts to
           | peanuts in the context of the Army and DoD budgets or (2) not
           | save any money at all.
           | 
           | I guess the primary purpose of the audit is to make all the
           | numbers add up, and maybe that can inform cost-saving
           | decisions down the road, like you said about warehouse
           | storage space(?).
           | 
           | I'd rather see a number of "elephant in the room" programs
           | ruthlessly cut, or processes changed, to start saving many
           | billions of dollars now.
        
             | NovemberWhiskey wrote:
             | > _I guess the primary purpose of the audit is to make all
             | the numbers add up, and maybe that can inform cost-saving
             | decisions down the road_
             | 
             | That's right - the, not unreasonable basis, is that you
             | can't make informed decisions about whether you're getting
             | good value for money, or how to change allocations, unless
             | you've transparency into what that money actually does.
             | 
             | It's approximately the same reason why financial statements
             | and their audits are relevant in the private sector - just
             | substitute "investors" for the "the public, with Congress
             | as proxy".
        
               | importantbrian wrote:
               | Also, audits are not 100% about saving money. They're
               | also there to enforce conformity to standard accounting
               | practices and try to make sure the books aren't getting
               | cooked. Even if the books aren't getting cooked the only
               | way you can be sure of that is to go through the audit
               | process.
        
             | wolverine876 wrote:
             | > like you said about warehouse storage space(?).
             | 
             | I think that's about much more than space, and more the
             | operational drag of managing all that stuff.
             | 
             | Here's the Army Undersecretary and also the Chief of Staff
             | talking about it and plans to reduce inventory:
             | 
             | https://www.defenseone.com/policy/2023/10/army-doesnt-
             | know-w...
             | 
             | From the article:
             | 
             |  _"I 'm working really hard with Army Materiel Command to
             | find ways to more rapidly and in the digital fashion to
             | catalog what we currently have, not relying on the
             | clipboard and supply soldier who's sitting there taking
             | notes and putting it on a piece of paper,"_
             | 
             | Yikes.
        
               | warner25 wrote:
               | Oh yeah, when I was a platoon leader and company
               | commander, we spent 20-30% of our time - like a day per
               | week, or a week per month - just looking for stuff,
               | counting stuff, and annotating on paper the locations of
               | the stuff (e.g. which building, office, shipping
               | container) to help us find it again next time.
               | 
               | But you also weren't _allowed_ to get rid of any of it,
               | even if it was obsolete and just hanging around since the
               | 1970s like I said earlier.
        
         | importantbrian wrote:
         | All of that sounds like bog standard kinds of stuff that we and
         | every other private company have to go through during our
         | annual audits. I don't totally understand why these things are
         | so burdensome to DoD personnel that they can't pass an audit. I
         | would have been fired a long time ago if our company regularly
         | failed audits over this kind of stuff.
        
       | mtrees_io wrote:
       | da fence is a broad term
        
       | blindriver wrote:
       | Why would anyone care about an audit if there are no
       | repercussions?
        
         | eviks wrote:
         | Those boxes don't check themselves
        
         | wolverine876 wrote:
         | Why do you say there are no reprocussions? It's a signicant
         | issue in Congress, which writes all of the Department of
         | Defense's checks, oversees them, investigates them, confirms
         | their leaders, and makes laws controlling everything they do.
        
           | Loughla wrote:
           | And what has failing audits led to in the past?
        
             | jsbisviewtiful wrote:
             | So far more money :P
        
             | wolverine876 wrote:
             | To improving the auditability of the Pentagon, a new and
             | ongoing project.
             | 
             | https://news.ycombinator.com/item?id=38307749
        
             | edgyquant wrote:
             | They haven't been doing them for very long at all and have
             | had better results pretty much every year since they
             | started.
        
           | mrchucklepants wrote:
           | It should be. But its not and, likely, never will be.
        
           | thesuitonym wrote:
           | The DoD is Congress' baby. They will move heaven and earth to
           | make sure the defense industry gets paid.
        
             | vuln wrote:
             | To make sure congress critters get paid by Defense
             | Contractors and secure lucrative board seats.
        
           | brvsft wrote:
           | The failed audits have no impact on their budget the
           | following year.
        
             | wolverine876 wrote:
             | The Pentagon is on track, for the most part, on their
             | auditing project. But what makes you say it doesn't impact
             | their budget?
        
               | Matticus_Rex wrote:
               | Six (out of six) years of failed audits, and no
               | repercussions in sight?
        
               | wolverine876 wrote:
               | Again, they are on track.
               | 
               | https://news.ycombinator.com/item?id=38307749
               | 
               | It's like an airplane under development. It's not
               | expected to fly yet.
        
           | Matticus_Rex wrote:
           | > It's a signicant issue in Congress
           | 
           | What are you basing that on?
        
             | wolverine876 wrote:
             | Lots of discussion and pressure on it, going back 10-15 or
             | more years.
        
         | KennyBlanken wrote:
         | Believe it or not, the Pentagon isn't really the problem;
         | Congress is.
         | 
         | https://rollcall.com/2023/05/23/hill-favored-projects-called...
         | 
         | Congressional representatives push all sorts of weapons
         | "programs" that military leadership doesn't want or need,
         | because it's an easy way to be able to go home and tell your
         | voters how many jobs you "saved" "protecting America."
         | 
         | Well over a decade ago Pentagon leadership declared that their
         | budget was not sustainable for the country...just like they
         | declared a long time ago that climate change was a serious
         | threat and started working on decarbonization (the US military
         | is still the single largest generator of carbon dioxide on the
         | planet.)
        
         | beambot wrote:
         | More to the point: Perhaps it's a feature, not a bug.
        
       | MrMetlHed wrote:
       | Worked with a guy ten years ago that would obsessively read these
       | reports from the Pentagon. Here's a couple of his stories about
       | the matter: https://www.reuters.com/investigates/pentagon/ and
       | https://www.reuters.com/investigates/special-report/usa-mari...
       | (very old and I apologize for my horrific javascript at the
       | time.)
       | 
       | It sounds like nothing has changed. Relevant to this crowd,
       | maybe: "Most of the Cobol code the Pentagon uses for payroll and
       | accounting was written in the 1960s, according to 2006
       | congressional testimony by Zack Gaddy, director of DFAS from May
       | 2004 to September 2008."
       | 
       | "Wallace, the Army assistant deputy chief of staff, says the
       | system has "seven million lines of Cobol code that hasn't been
       | updated" in more than a dozen years, and significant parts of the
       | code have been "corrupted." The older it gets, the harder it is
       | to maintain. As DFAS itself said: "As time passes, the pool of
       | Cobol expertise dwindles.""
        
         | wslh wrote:
         | I would love to perform static security code analysis to that
         | code.
        
           | tandr wrote:
           | Are there any SA tools, that would understand COBOL?
        
             | Jtsummers wrote:
             | https://www.sonarsource.com/knowledge/languages/cobol/
             | 
             | Never used it (and hopefully never will), but yes.
        
           | xeromal wrote:
           | Not all the RAM on earth would be enough to process that shit
        
         | bogota wrote:
         | Start paying 250k a year for cobol developers and the problem
         | fixes itself really fast. That or start migrating the system.
         | Or more likely they keep using it until it completely breaks
         | and then run to the government for a big handout to fix it.
         | 
         | Easy to be irresponsible with other peoples money.
        
           | lancepioch wrote:
           | Don't they have caps and levels for federal employee
           | salaries? I agree that raising the salary would decrease the
           | issues. I think that they'd need exceptions to account for
           | these increases though.
        
             | Jtsummers wrote:
             | Yes, but not for contractors. Most software sustainment
             | ultimately ends up in the hands of contractors with
             | government supervision in the form of program offices. Not
             | all, though, many programs are also "organic", primarily or
             | fully staffed by government employees and managed by
             | government employees.
        
               | randmeerkat wrote:
               | > Yes, but not for contractors.
               | 
               | Sure, but it's not like the consulting firms are paying
               | their "contractors" more, they just siphon up the
               | difference for their shareholders.
        
               | ska wrote:
               | That's not really how it works. They are more than happy
               | to have "market forces" drive up the hourly rates, so
               | long as they get to keep their overhead % fixed, and
               | that's probably how the contract is structured. Win-win
               | (and perhaps -lose for taxpayers).
        
               | randmeerkat wrote:
               | > That's not really how it works. They are more than
               | happy to have "market forces" drive up the hourly rates
               | 
               | That's exactly how it works, look at contract government
               | salaries compared to anything in the private sector. They
               | charge the government more as rates "go up", but that
               | certainly isn't passed along. If large contracting
               | companies really offered value to the government _and_
               | kept up with market rates for their employees, the state
               | of federal software wouldn't be what it is today.
        
               | ska wrote:
               | I didn't say that your rate at a govt focussed
               | consultancy would be identical to your rate elsewhere. I
               | probably should have been more explicit.
               | 
               | I rejected the idea that the consultancy would get a rate
               | increase based on "market rates being higher" and then
               | just capture it all - in my (admittedly somewhat limited
               | and path dependent) experience that just isn't how it
               | works. It's more like we pay randmeerkat $X, we bill them
               | out at $X * factor + overhead. "Market forces" mean we
               | have to go Y > X in renewal or we will lose randmeerkat &
               | friends, so now they get $Y and we bill $Y * factor +
               | overhead. It's of course usually more complicated in
               | general, and overhead especially likely isn't that
               | simple.
               | 
               | Nowhere in there is the assertion that X _or_ Y is what
               | randmeerkat would get on the open market. Importantly,
               | their market isn 't really "programmers", but
               | "programmers that work in govt + contracting halo". Which
               | is part of why the idea: I could get $N more in SF tech
               | may be compelling for you, but isn't compelling for them
               | (unless too many people actually make that change,
               | instead of just talk about it).
               | 
               | Also there are many other ways they can raise there
               | rates, but if the claim is that it is due to market on
               | the developer salaries that are going to be a line item,
               | there is going to be at least first pass look at a) is
               | that true (find some market data and wave hands) b) did
               | it actually get spent that way (may come up in an audit).
               | 
               | So the real answer seems to be not "They get more and I
               | get nothing" but "I get a bit more, and they get more
               | scaled by what I get", i.e. "win-win".
               | 
               | There is lots wrong with the system of contracting, but I
               | don't think criticizing a cartoony straw-man of it gets
               | anywhere useful.
        
           | nickpeterson wrote:
           | Part of the problem is, you tend to need cobol experts to
           | actually have any hope of successfully transitioning to
           | another technology, and if we had enough cobol experts would
           | look at the cost of migrating and say, "who needs to, we have
           | a bunch of cobol developers?"
        
             | adamc wrote:
             | Hire experts and have it be reported as "waste" and hear
             | complaints in Congress about government waste.
             | 
             | We want government to be cheap. You get what you pay for.
        
           | toasted-subs wrote:
           | Starting pay for cobol in finance was around 350k last time I
           | glanced. Nobody wants to rewrite a working system which will
           | likely be much more expensive than finding one person to
           | maintain the project.
        
             | saiya-jin wrote:
             | With rewrite comes uncertainty and risk too, how many new
             | bugs compared to code that works for decades?
        
           | MrMetlHed wrote:
           | In the last part of the series from 2013 we have a chart that
           | shows the Pentagon had spent over $10b modernizing their
           | accounting systems (that was through 2013, no idea how much
           | that number has grown.) I can't imagine anyone would miss a
           | few million of that going to COBOL developers. The money
           | scale for Pentagon projects is mind-boggling to me.
        
           | thelastgallon wrote:
           | Incentives only work on low-skilled labor that is
           | quantifiable. Eg. more money for flipping more burgers. It is
           | not a settled science paying people a lot more will
           | automagically solve problems. People crave Autonomy, Mastery
           | & Purpose: https://www.youtube.com/watch?v=rbR2V1UeB_A
           | 
           | What is definitely going to happen is you will attract the
           | cowboys who have convinced themselves and can convince you to
           | pay top dollar. They will come up with lets do kubernetes +
           | service-mesh + multi-cloud hybrid + blockchain + crypto +
           | AI/MI on this COBOL ... They will take top dollar, make a
           | bigger pile of mess, sell it as a success story and move on
           | make bigger messes.
        
             | whatshisface wrote:
             | 250k is not top dollar, it is average for experienced
             | engineers.
        
               | Kranar wrote:
               | 250k is not top dollar for programmers, but it is top
               | dollar in absolute terms. The point is that you don't
               | incentivize better work by paying top dollar. Taking a
               | mediocre developer and paying them more doesn't make them
               | a better developer or even motivate them to become
               | better.
               | 
               | It can attract people who are already good software
               | developers absolutely, but the second point being made is
               | that you also attract a lot of charlatans as well and so
               | just throwing more money at the problem isn't exactly a
               | great solution.
               | 
               | You need a solid culture to go with the money.
        
               | ramilefu wrote:
               | Depends on where you live. An "experienced engineer" is
               | going to make a lot less if they live in Mississippi than
               | if they were in California. 250k for the former is likely
               | "top dollar".
        
               | 1323portloo wrote:
               | If you are a small shop, sure. If you are a major
               | employer you will either meet market rate and get top
               | candidates (willing to live in your area) or you will get
               | whatever candidates decided to live in Mississippi.
        
               | bluefirebrand wrote:
               | People on HN are convinced if you don't live in
               | California maximizing your salary, you're not capable of
               | doing so.
               | 
               | Highlighted in the sibling comment: "you will get
               | whatever candidates decided to live in Mississippi"
               | 
               | As if top talent never decides to live in Mississippi and
               | accept 250k/year as their salary ceiling...
        
               | 1323portloo wrote:
               | I didn't say that top talent doesn't live in Mississippi,
               | I just said you will get what candidates DO decide to
               | live in Mississippi. If you want top talent, you have to
               | advertise nationally, and be willing to pay the national
               | rate. I live in a city that is quite poor for an employer
               | that is quite large. They pay slightly better than
               | average for the area except for their engineers and upper
               | management, that goes to market rate because they are
               | willing to hire the best available.
        
               | rumdz wrote:
               | Outside of CA?
        
               | metabagel wrote:
               | Even in Southern California, $250K is a very high salary
               | for developers, at least in embedded systems, which is
               | the space I'm familiar with.
        
               | Miner49er wrote:
               | No, that is not average, maybe in high COL areas, but
               | that obviously would then not be average.
        
               | metabagel wrote:
               | Outside the Bay Area, $250K is top dollar.
        
               | rybosworld wrote:
               | This is a lie that is commonly spread here and on reddit.
        
             | VoodooJuJu wrote:
             | >People crave Autonomy, Mastery & Purpose
             | 
             | I'm not a sack of chemicals whose desires can be reduced
             | down to some pithy pseudo-scientific Maslowian quip. The
             | only thing I crave from my job is cash so I can take care
             | of me and my family. 250k/yr for a COBOL position would
             | suit that end just fine. You can keep your autonomy,
             | mastery, purpose, and all the other foofoo, just hand me
             | the check so I can be on my way.
        
               | wolverine876 wrote:
               | > I'm not a sack of chemicals whose desires can be
               | reduced down to some pithy pseudo-scientific Maslowian
               | quip. The only thing I crave from my job is cash
               | 
               | I thought you were against reductionism?
        
           | curiousllama wrote:
           | Cobol cowboys are a thing. They make substantially more than
           | 250k. They're competing with Wall St though, so hard to just
           | pay more.
           | 
           | Fed govt migrations are ALWAYS shitshows. The army alone has
           | like 20 individual email services. The pentagon is to org
           | complexity what big tech is to technical complexity. It's
           | turtles all the way down.
           | 
           | This is literally one of the largest bureaucratic challenges
           | on earth. There's no simple fixes
        
             | mschuster91 wrote:
             | The solution is simple: you need someone with absolute
             | authority over _everyone_ including the generals to lead
             | the effort.
             | 
             | There's a time and place for democracy - but large IT
             | projects are not. Do a _thorough_ need analysis, compare
             | with what 's reasonably possible using COTS software, and
             | adapt or discard what is not possible.
        
               | count wrote:
               | I can't tell if you're being sarcastic, or earnest.
               | 
               | This is the funniest possible response. The 'thorough
               | need analysis' is the reason we are where we are now!
               | 
               | The thoroughness is so thorough that the needs change
               | faster than the analysis can be completed, obviating the
               | analysis in the first place.
        
           | ska wrote:
           | > Start paying 250k a year for cobol developers and the
           | problem fixes itself really fast.
           | 
           | Do you think they aren't? I don't know any now, but the last
           | one I did was making more than that 15 years ago.
           | 
           | Old crufty legacy systems in a big bureaucracy are many
           | peoples idea of hell. Empirically speaking, good pay and job
           | security aren't enough to have people knocking down your door
           | for that kind of work if they have other decent options.
        
           | wubrr wrote:
           | That could work if the existing code is actually up-to-date,
           | correct, and if you have knowledgeable users of the systems
           | backed by this code. The part about 'code corruption' makes
           | me thing this is not the case.
           | 
           | Worked at a big bank migrating some old code to new stack one
           | time:                 - Original developers are gone.       -
           | Existing users don't understand the systems outside of their
           | own narrow use-cases.       - Code which was committed to
           | repositories didn't match the actual running code, because
           | people would go into production servers, manually edit the
           | code there, in place, not document or commit the changes to
           | repo. There were like 20 years of adhoc changes made in this
           | way.
           | 
           | We had some business analysts which were supposed to talk to
           | the users and gather requirements - they very quickly simply
           | gave up and asked the developers to 'reverse engineer'
           | everything.
           | 
           | Anyway, it was a hilarious shit-show, but kinda fun at the
           | same time (if you're able to ignore incompetent leadership
           | pressure - a skill I mastered during this time).
        
         | uticus wrote:
         | Of course, devil's advocate would point out COBOL in 60s was
         | written with a lot more focus on lasting in general. They
         | didn't largely have the same general attitude of 'we iterate
         | quickly with our script kiddies' as is prevalent today.
         | 
         | Not that all software from then was wonderful. Or that COBOL
         | magically guarantees great code.
         | 
         | But, on the flip side, you can't say the code base isn't
         | battle-hardened (to various literal degrees).
         | 
         | * edit: corrected sp
        
           | SteveNuts wrote:
           | It'd be battle hardened to 1960s standards, payroll has
           | changed a _lot_ since then. And if they can't accurately
           | describe exactly how certain calculations are made (or have
           | to do some of those manually outside of the program after it
           | runs), that would be a huge problem in an audit.
           | 
           | This is why big companies use Oracle or SAP for their ERP,
           | auditors are very familiar with it and the way it functions
           | is well-known and understood.
        
           | monocasa wrote:
           | Also throwing out there that COBOL was a language designed by
           | the DOD specifically for managing it's bureaucracy.
           | 
           | It was a naval research project headed by Admiral Grace
           | Hopper to program with words rather than formulas like
           | earlier "high-level" "autocoders", enabling secretaries to
           | transfer their business logic into computers. It actually
           | intentionally has a lot of the same structure as a recipe,
           | hoping that this would allow easier uptake by secretaries.
        
           | ebiester wrote:
           | I can build you a team using today's (quality: average B2B
           | startup) programmers and today's methodologies that will
           | write software for 40 years.
           | 
           | It will just cost twice as much as the team that iterates
           | quickly. It will cost more because I will spend more money on
           | business analysis up front. I will spend more money writing
           | automated tests. Most importantly, I will maintain my own
           | toolchain and libraries or pay someone to do so. Every piece
           | of software deployed will have someone accountable to my
           | business to maintain it.
           | 
           | It turns out that this is expensive. It's no more expensive
           | than maintaining the COBOL code, mind you, and would likely
           | give you better results than the equivalent COBOL code. Most
           | companies will take their chances with less expensive
           | software because that's what their competitors do.
           | 
           | About a decade ago, I saw one of the major systems you talk
           | about up close. While they spent that amount of money for
           | mission-critical systems, they didn't do nearly as good of a
           | job on the average software in the system. I'm not convinced
           | that any business is ready to go back to the battle hardened
           | days.
        
             | docandrew wrote:
             | I wonder though whether the up-front costs incurred by your
             | team would eventually be outweighed by the long-term costs
             | of the quick team.
        
               | ebiester wrote:
               | I am not convinced that it would. The quick team will get
               | to learn three times as much and adapt to the actual
               | customer need. The cost of change in a system built with
               | stability as a quality attribute will be higher. (As you
               | can see from a system like the old mainframes!)
        
             | dustingetz wrote:
             | ha! you wouldn't even be permitted to bid the project!
        
             | quickthrower2 wrote:
             | The trick is to use JS. (Not anything that compiles to it)
             | 
             | It will be guaranteed to run in 100 years time.
             | 
             | Any other language can die or have incompatibility issues.
             | Over that timespan.
        
               | ebiester wrote:
               | You could use Java or Python and have the same guarantee.
               | 
               | I am not convinced Node will be here in 100 years.
        
               | klyrs wrote:
               | Brainfuck is the only language we need. It's feature
               | complete and practically guaranteed to go unchanged in
               | the next millenium.
        
               | kube-system wrote:
               | I can't tell if I'm being Poe's Law'd. JS engines are a
               | moving target and have been ever since it was called
               | LiveScript.
        
           | bastawhiz wrote:
           | > you can't say the code base isn't battle-hardened
           | 
           | Your statement is undermined by the fact that the system has
           | failed its sixth consecutive audit. If it's not hardened
           | against failing an audit, I'm not really sure what it could
           | possibly be hardened against.
        
             | bumby wrote:
             | Part of Murphy's Laws of Combat: No combat ready unit ever
             | passed inspection. No inspection ready unit ever passed
             | combat.
             | 
             | Managers need to be careful of Goodhart's law. (in this
             | case "passing inspection" may not be the best target)
        
               | bastawhiz wrote:
               | And yet hundreds of thousands of companies pass the same
               | audits. The call for audits came from ridiculous amounts
               | of misreporting and waste. Accounting systems that can't
               | do accounting and deal with _trillions of taxpayer
               | dollars_ should not have the goalposts moved. A 0.001%
               | error in a trillion dollar system is ten million dollars.
               | That 's taxpayer money that could fix derelict bridges or
               | pay for thousands of children to receive lunch at school.
        
               | bumby wrote:
               | Can you made a single company that has the same mission
               | and scope? They article states there are 29 entities
               | audited. A fair number of those probably dwarf the
               | companies you're using as a comparison all by themselves.
               | 
               | I'm all for holding the DoD accountable. But I'm not for
               | trivializing the problem they are working on and
               | pretending it's equivalent to a company selling copier
               | paper.
        
         | encoderer wrote:
         | I can imagine a future where new software is, mainly, written
         | by humans while legacy software is maintained by ai.
         | 
         | It can take months for a new developer to understand a legacy
         | code base but an LLM with a big enough context window would be
         | instantly productive.
        
           | Yahivin wrote:
           | I can imagine the opposite.
        
             | encoderer wrote:
             | Cool tell me more.
        
               | SteveNuts wrote:
               | Not OP but I could see some shops pushing AI generated
               | code to production, then when changes need to be made,
               | they can't get the AI to modify the existing code in just
               | the way they need, so a human has to intervene.
        
               | bastawhiz wrote:
               | I can't get Copilot to generate Python that adds numbers
               | together correctly sometimes. Getting an LLM to generate
               | correct, working code for a language that hardly anybody
               | writes anymore is almost assuredly going to lead to
               | failure.
        
               | encoderer wrote:
               | yeah I agree but when you look at the slope not the
               | y-intercept it's getting obviously better.
               | 
               | one advantage the government would have is training/fine-
               | tuning on a hundred million lines of domain specific
               | cobol.
        
               | bastawhiz wrote:
               | The slope doesn't really matter, because the target is
               | "better than a human, and able to identify and fix its
               | own errors". The slope will decrease as you approach this
               | threshold.
               | 
               | It's also wildly bad to plan to train and fine tune on
               | code that you know has bugs. Already we have Copilot
               | generating code with trivial vulnerabilities because
               | that's what it's trained on.
        
           | nradov wrote:
           | The hard part of accounting systems is doing the requirements
           | analysis (including interviewing humans who give inaccurate
           | or incomplete answers) and writing detailed functional
           | specifications which account for every possible edge case. No
           | LLM can do that.
           | 
           | Once you have the detailed specifications the coding is
           | relatively easy. Some of that can be partially automated
           | using AI CASE tools, but that only gives a marginal
           | improvement to overall project productivity.
        
             | dragonwriter wrote:
             | > The hard part of accounting systems is doing the
             | requirements analysis (including interviewing humans who
             | give inaccurate or incomplete answers) and writing detailed
             | functional specifications which account for every possible
             | edge case. No LLM can do that.
             | 
             | One of my first one afternoon (for prompt refinement and
             | trying it out) toy GPT-3.5 "applications"--really just a
             | prompt--was having it interview for reauirements and draft
             | and progressively refine a requirements doc in a specified
             | (by reference to an author in popular Agile literature, not
             | by specific templates, so just relying on the model's
             | general training) format. Its pretty much what convinced me
             | of the broad utility of the technology.
             | 
             | I absolutely think that with a bit of effort, GPL-4-128K, a
             | custom RAG framework and/or the Assistants API, you could
             | build something that handles a lot of this. I'm not really
             | bullish near term on LLMs as full replacements, but I can
             | see it as a big force multiplier.
        
             | charlie0 wrote:
             | Ding, ding, ding, we have a winner. This. I see issues at
             | my small startup with not having clarity with certain
             | billing items. This issue is not technical, it's the
             | unknown requirements of why things were written in the way
             | they current exist. I can't imagine what kind of bizatine
             | rules they have in the Pentagon that were placed there
             | decades ago, and no one can answer why. Codebase must be
             | littered with Chesterton fences.
        
             | DougBTX wrote:
             | > The hard part of accounting systems is doing the
             | requirements analysis (including interviewing humans who
             | give inaccurate or incomplete answers) and writing detailed
             | functional specifications which account for every possible
             | edge case.
             | 
             | So lots of tedious repetitive manipulation of language to
             | extract facts and transform them into a systematic format?
             | My prediction: LLMs are going to eat that for breakfast.
             | 
             | (Honestly it is a great business idea for someone with the
             | right contacts. Lots of big customers with deep pockets and
             | large private datasets to train against that might now have
             | a solution to a problem which was previously intractable in
             | scale.)
        
               | nradov wrote:
               | None of those customers have actual data sets to train
               | against when it comes to ERP and accounting software
               | requirements analysis. The data that exists at all is
               | scattered across random Word documents, wiki pages, paper
               | notebooks, and legacy requirements management systems.
               | Most of it is summarized. It's not recordings of past
               | interviews with SMEs that business analysts and product
               | owners conducted to extract functional requirements. In
               | order to train an LLM to conduct such interviews you
               | would have to obtain actual transcripts of such
               | interviews. Not impossible, but unlikely to happen
               | anytime soon.
        
         | TurkishPoptart wrote:
         | Is the problem really related to COBOL, or is the fact that
         | this institution is basically unaccountable to taxpayers?
        
       | b8 wrote:
       | Which 18 departments failed besides the two mentioned in the
       | article?
        
         | solardev wrote:
         | Sorry, that'll have to be a separate audit of this audit.
        
       | jmyeet wrote:
       | At least the missile knows where it is.
        
         | rattlesnakedave wrote:
         | au contraire, it knows where it isn't
        
       | jfoutz wrote:
       | I know I'm incredibly naive, and there's no political will to
       | actually make the system work.
       | 
       | It seems like various sections and departments are passing
       | audits. If you're within, say, 1% just allocate the funds.
       | 
       | If you didn't pass the audit, fill out this form and then get the
       | money. The form can be classified.
       | 
       | I have no idea, but I'd imagine like payroll and taxes are pretty
       | much perfect.
       | 
       | Once you get a handle on who doesn't know where their money is
       | going, you can help them figure it out, throughout the year, and
       | be on track next year.
       | 
       | It's huge, it's massive it's trillions of dollars, it's a
       | completely incomprehensible system. But, like, some parts are
       | comprehensible. Those parts are easy. The incomprehensible parts
       | can be broken down and figured out. Is divide and conquer not a
       | thing?
        
         | TinyRick wrote:
         | There's no political will to actually make the system work
         | because the system is working perfectly fine for those in
         | charge.
        
         | curiousllama wrote:
         | This is what they're doing ("incremental progress" as they
         | say). The issue is the scale of the system.
         | 
         | With a big enough org, the ongoing deterioration occurs faster
         | than you can actually root cause and fix the problems.
         | 
         | You divide the orgs, they divide the pillars, they divide the
         | groups, they divide the pods, they divide the teams... all the
         | sudden, a 4 week root cause exercise takes a year and a half.
         | By the time you implement the solution, you're 3 years out of
         | date. Whoops - administration flipped. They don't care anymore.
         | "What do you mean accounting - why are we behind China in AI?!"
        
         | importantbrian wrote:
         | Divide and conquer actually does seem to be the strategy. Each
         | department within the DoD does its own audit, and a few of
         | those departments actually have passed. But most of them have
         | failed with a few still ongoing.
         | 
         | The bigger issue is the no political will part. If congress
         | mandated that senior pentagon officials lose their jobs when
         | they fail an audit they would get the process figured out
         | really quickly. As is there's no urgency because there are no
         | consequences for failure.
        
         | kulahan wrote:
         | >I have no idea, but I'd imagine like payroll and taxes are
         | pretty much perfect.
         | 
         | It is _well_ -known in the military that WHEN you inevitably
         | get a screwed-up paycheck, if you get too much, it's your
         | problem, because they're 100% sucking that money back out of
         | your account or simply not paying you the next month. If you
         | get too little... well that's also your problem. Good luck - go
         | find someone to spare the time to fix it. It's a pain in the
         | ass.
         | 
         | The system is ancient, unfortunately.
        
       | wolverine876 wrote:
       | The US Department of Defense was not audited until six years ago,
       | when it began a project to make their organization auditable.
       | From the start, it was expected to take longer than six years:
       | 
       | You are looking at a potential new job. A large company wants you
       | to lead a project on their audits. Here is the situation:
       | 
       | They are large and complex - on a different order of magnitude,
       | possibly the largest, most complex organization in the world -
       | with ~$4 _trillion_ in assets (not market cap, but hard assets),
       | and ~$900 _billion_ annual budget, seven figures of employees,
       | and operations spanning almost every activity, all over the
       | world.
       | 
       | Such an organization is naturally divided into an incredibly
       | large and complex org chart that maybe nobody really comprehends.
       | Among all the entities on that chart are an incredible array of
       | financial and asset tracking systems, computerized and manual,
       | from new back to possibly WWII.
       | 
       | Your boss says that procurement is the most important thing to
       | audit: An unusually large part of that $900 billion budget is the
       | world's largest procurement budget and operation, with an endless
       | list of vendors of every size and shape, from the world's largest
       | companies - some whose core function is milking your organization
       | without crossing legal redlines - to the tailor for West Point
       | uniforms. And we were hoping you wouldn't ask, but we're afraid
       | the budget and operation is decentralized across all/most of
       | those entities in that org chart [edit: per commenter with actual
       | knowledge, "the budget is somewhat centralized; it's just the
       | execution that's decentralized".]
       | 
       | We'll need you to stitch all that together so we can audit it.
       | 
       | Who is providing executive support for this project? Well, very
       | few in our organization, from the leadership down, really want it
       | - they all see it as a distraction and source of trouble,
       | possibly risk to their missions and careers. It was imposed on
       | us. Also, the project will be the target of politics (including
       | from a certain highly aggressive party in Congress), talking
       | heads, and general public Internet attacks no matter what you do.
       | Everyone sees you as a useful whipping post.
       | 
       | Do you take the job?
        
         | psunavy03 wrote:
         | As someone with 20 years active and reserve time, the only
         | thing I'd really tweak here is that the budget is somewhat
         | centralized; it's just the execution that's decentralized. DOD
         | is an Executive Branch department that operates on money
         | programmed by Congress. Agencies choose, within limits of Title
         | 10 US Code, how to spend that money, but the "pots" or
         | "flavors" of money they have to spend are allocated in the
         | Congressional budget.
        
           | count wrote:
           | Heh, most of the DoD is. But DoD also has non Title10/PPBE-
           | programmed funding (foreign military sales, contingency and
           | humanitarian operations funds, MWR funds and incomes,
           | support-to-other-agency (e.g. the US Navy NAVWAR organization
           | provides SUBSTANTIAL IT and cyber expertise to non-DoD
           | entities and other federal agencies such as the FBI and DHS).
           | 
           | The DoD is like the End Game Boss on legal and financial edge
           | cases.
        
             | wolverine876 wrote:
             | As someone who seems to know a bit about it, do you take
             | the job? :)
        
         | mschuster91 wrote:
         | Give me the complete and utter authority, Congress off of my
         | neck for four years and I will.
         | 
         | The problem is not technical, it's the immeasurable amounts of
         | tiny personal fiefdoms established by the countless layers of
         | middle management. You won't get rid of these without someone
         | who has been publicly given the political backing to end the
         | career of anyone resisting change. And that _includes_ the
         | Congress members which are on speed dial in some people 's
         | phones.
        
           | wolverine876 wrote:
           | Your analysis of the problems is interesting. Do you work in
           | DoD?
           | 
           | IME such internal politics is unavoidable in large
           | organizations. Nobody likes it but it's the ocean in which
           | everyone must swim. You can alter it to some degree, but
           | there's no way for a structure that large to work without it.
           | How do you manage million(s?) of people without middle
           | management?
           | 
           | Also, it's not Meta. It's an organization that is responsible
           | for life and death of hundreds of millions or billions, and
           | national and global security, so control is essential. As a
           | simple example, you can't lose track of the grenade launchers
           | or nuclear weapons and have them end up in the wrong hands.
        
           | vore wrote:
           | That's not how authority works. Whatever you would choose to
           | implement, you will need to have enough buy in from those
           | middle managers and fiefdoms otherwise you will end up with
           | heel-dragging or, worse, malicious compliance. If you've been
           | in _any_ kind of organization that 's tried to impose
           | completely top-down edicts, you should have seen the kind of
           | destruction of morale it leaves in its wake.
        
             | wolverine876 wrote:
             | > Whatever you would choose to implement, you will need to
             | have enough buy in from those middle managers and fiefdoms
             | otherwise you will end up with heel-dragging or, worse,
             | malicious compliance. If you've been in any kind of
             | organization that's tried to impose completely top-down
             | edicts, you should have seen the kind of destruction of
             | morale it leaves in its wake.
             | 
             | Even for military officers giving orders in the field,
             | edicts don't work. You need buy-in, including earning trust
             | in you.
        
           | bumby wrote:
           | Hell, it would probably take more than four years just to
           | understand the problems the various organizations are trying
           | to solve. If you rush that, you "solution" is bound to miss
           | important nuances that make things worse rather than better.
           | 
           | Sure, you could assemble a team with that experience to
           | short-cut some of that. But you'll likely need a long time to
           | just build the trust necessary to get the right information.
           | You're an outsider and will likely be treated as such.
        
       | thelastgallon wrote:
       | Sounds like an ideal job for AI.
       | 
       | AI, please read this COBOL code and rewrite it all in Rust.
       | Understanding 85 COBOL Standard reserved words is orders of
       | magnitude easier than understanding English. AI should bludgeon
       | this task in no time.
       | 
       | And Rust can be 180,000x faster[1], all the code will be
       | efficient and run on a mac mini or raspberry pi.
       | 
       | It sounds like the easiest way for AI startups to make a pitch
       | and collect a big bounty from Pentagon.
       | 
       | [1]https://news.ycombinator.com/item?id=37964161
        
         | psunavy03 wrote:
         | Do you even code?
        
       | btbuildem wrote:
       | Pardon me if this is too simplistic, but wouldn't cutting back
       | the budget begin to instil some fiscal responsibility into an
       | organization?
       | 
       | Conducting an audit seems like just another expenditure in a
       | climate of obscene overabundance of resources that encourages
       | spending more and more.
        
         | px43 wrote:
         | I'm pretty sure they would blame the cuts for their continued
         | lack of action.
        
         | wedn3sday wrote:
         | Any loss in revenue would immediately be blasted through the
         | media as the destruction of jobs. Dont think of the pentagon as
         | a fighting force, think of it as a make work (and thus make
         | votes) organization.
        
       | dostick wrote:
       | 60% of 35 trillion is unaccounted for. With this kind of money
       | they can build whole separate world under earth surface. Nothing
       | they can't buy with that money.
        
         | queuebert wrote:
         | That's 420 years of the NIH budget. They lost FOUR CENTURIES
         | worth of groundbreaking medical research. We have really eff-ed
         | up priorities.
         | 
         | In other units that I'm known for, that's 550 Enrons.
        
       | juujian wrote:
       | Looks like they can just get away with it, so what's the
       | incentive to change that?
        
       | karaterobot wrote:
       | > Auditing the Department's $3.8 trillion in assets and $4.0
       | trillion in liabilities is a massive undertaking
       | 
       | But... that's irrelevant. The _audits_ didn 't fail, the things
       | being audited failed the audit.
        
       | rglover wrote:
       | Is everybody ready to warmly embrace anarchism yet (or as a
       | start, secession) or are we going to take a few more trips around
       | the sun?
       | 
       | /s
        
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