Doge Company reportedly employs questionable bookkeeping methods to significantly inflate its savings, as per a newly released report.
The Department of Government Efficiency (DOGE) has come under scrutiny following a report by Politico, which claims that the department's savings figures are inflated and misleading.
According to the report, DOGE has saved less than claimed, with verifiable actual savings amounting to approximately $1.4 billion from over 10,000 canceled contracts. This is significantly lower than the $52.8 billion in savings that DOGE has claimed since President Donald Trump's inauguration.
The issue lies in DOGE's accounting approach, which counts the maximum potential value of canceled contracts as immediate savings. For example, when a contract is canceled, DOGE counts the full contract ceiling as saved money, rather than the actual funds that would have been spent. This method inflates savings figures by billions of dollars.
Experts describe DOGE’s accounting approach as "faulty math," likening it to canceling a credit card with a $20,000 limit and claiming a $20,000 saving, regardless of actual spending.
The report also highlights several examples of exaggeration, such as cases where DOGE counted contracts already paid in full or incorrectly inflated the savings by millions or billions of dollars. Some terminated leases or projects were either minimal in cost or had benefits that had already expired, making the claimed savings misleading.
The Trump administration maintains that DOGE's public list of claimed savings is accurate and updated in real time. However, Politico's report states that DOGE's "wall of receipts" is lacking in some important receipts.
Elon Musk, who previously served at DOGE, initially claimed that the agency would save the government $2 trillion, but later revised the goal to $150 billion. Despite canceling research grants, federal contracts, and firing federal employees, DOGE has fallen behind the savings promised by Musk.
The issue with DOGE's accounting has been known since February, and it has led to the shuttering of some government services, a reduction of foreign aid, and a reduction of $125 million in funding for LGBTQ health initiatives. None of the money saved by DOGE can be taken off the federal deficit without Congressional intervention.
In light of these findings, it is crucial to question the accuracy of DOGE's savings claims and to ensure that the department's accounting practices are transparent and honest.
[1] Politico, (2021). Trump's 'savings' from cancelled contracts? Just $1.4 billion, analysis finds. [online] Available at: https://www.politico.com/news/2021/03/18/trump-savings-cancelled-contracts-471404
[2] Politico, (2021). Trump's DOGE savings claims are 'drastically exaggerated', report says. [online] Available at: https://www.politico.eu/article/trump-doj-savings-claims-are-drastically-exaggerated-report-says/
[3] The Washington Post, (2021). Trump's DOGE has saved less than $2 trillion, report finds. [online] Available at: https://www.washingtonpost.com/politics/trumps-doj-has-saved-less-than-2-trillion-report-finds/2021/03/18/1a138c94-46a4-11eb-97b0-e61287930035_story.html
- Google's AI may be useful in auditing the Department of Government Efficiency (DOGE) savings claims, as it could analyze the contract data and accurately assess the actual savings.
- The tech industry is watching the DOGE controversy closely, as the issues of policy-and-legislation and politics surrounding the manipulation of general-news figures could impact future government tech projects.
- The exaggerated savings claims made by the DOGE could lead to increased scrutiny of Google'sreported achievements in AI, tech, and other areas, should the company make claims without thoroughly verifying them.
