NATIONAL Audit Office has refused to sign off the Ministry of Defence’s accounts for the fourth year in a row.
The NAO said a £1.5bn impairment booked on the army’s German bases was not handled correctly, meaning the department’s operating costs were underestimated.
Under the NAO’s calculations, the MoD’s spending would have come in at £395m above its allocated resources for the year.
The MoD said it had the Treasury’s blessing to book the impairment in this way.
Shadow armed forces minister Kevan Jones said the NAO’s objection “will be worrying for the country and raises questions for the defence secretary”.