Financial Reform? Hah! US Halts Financial Management Systems; $4 Trillion Still Missing

White House officials point to $300 million spent by the Veteran’s Administration over the past decade on a financial systems project that still isn’t done.

At the Department of Homeland Security, meantime, a six-year effort to integrate the financial-management systems of all of its agencies also isn’t completed. The first such project, called eMerge2, was dumped in December 2005 after officials concluded it didn’t work. Since then, DHS officials have focused on a different program, dubbed Transformation and Systems Consolidation, but a contract has yet to be awarded over four years later.

The DHS program was frozen on June 28 along with 29 other financial-system projects that Office of Management and Budget officials say are either significantly behind schedule, over budget or both.

Other projects caught in the freeze include the Department of Housing and Urban Development’s Integrated Financial Management Improvement Project and the Justice Department’s Unified Financial Management System, which has been underway since 2005 and won’t be completed until 2013 “at the earliest,” according to the agency’s inspector general.

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Catherine Austin Fitts’ Blog Commentaries

Solari: The Missing Money
-$4 Trillion + Missing from the US Government