Federal Agency Report Cards
Published: February 2025
We graded 24 major agencies on growth, audit compliance, and financial accountability.
Key Finding
The Department of Defense received an F — it has never passed a financial audit while spending $1.4 trillion per year. Meanwhile, the Department of the Treasury earned an A with 10 consecutive clean audits. NASA also earned an A with 8 straight clean audits on a fraction of the budget.
Department of the Treasury
ADepartment of Veterans Affairs
ASocial Security Administration
ADepartment of Justice
ADepartment of Labor
ANational Aeronautics and Space Administration
ADepartment of Health and Human Services
BDepartment of Transportation
BDepartment of the Interior
BDepartment of State
BOffice of Personnel Management
CFederal Deposit Insurance Corporation
CDepartment of Energy
CPension Benefit Guaranty Corporation
CCorps of Engineers - Civil Works
CEnvironmental Protection Agency
CDepartment of Commerce
CAgency for International Development
CRailroad Retirement Board
CGeneral Services Administration
DDepartment of Defense
FDepartment of Agriculture
FDepartment of Homeland Security
FDepartment of Housing and Urban Development
FGrade Distribution
Methodology
Each agency was scored on a 100-point scale based on three factors:
- Audit compliance (40%): Whether the agency received a clean financial audit opinion from its Inspector General, plus consecutive audit streak.
- Budget growth (30%): Year-over-year spending growth compared to inflation. Agencies growing faster than inflation are penalized.
- Financial accountability (30%): Improper payment rates, GAO high-risk list status, and overall fiscal management.
Grades: A = 85-100 | B = 75-84 | C = 65-74 | D = 55-64 | F = Below 55
The Bottom Line: No Audit, No Increase
Here's a simple proposition: if an agency can't tell you where the money went, it shouldn't get more money. The Department of Defense has failed every single audit since audits became mandatory — seven consecutive failures — while receiving budget increases every year. The Department of Homeland Security has never received a clean opinion.
In what universe does a private company get to double its budget after admitting it can't account for the first half? Only in Washington. The audit requirement exists for a reason — financial transparency is the bare minimum of accountability.
Congress should condition budget increases on clean audit opinions. It's not radical — it's basic accounting. Until agencies demonstrate they can manage what they have, giving them more is irresponsible.