Pentagon officials used government credit cards to spend more than $1 million at casinos and adult-entertainment clubs in a single year, an investigation by the Defense Department's Inspector General revealed.

The watchdog documented "widespread abuse of military credit cards for personal use" and said the Pentagon failed to flag potential abuse of taxpayers' dollars, the military newspaper added.

Officials from the department insisted, however, that taxpayers sustained no losses due to the improper spending because the charges were not reimbursed; rather, individual employees are ultimately responsible for paying the balances for any outstanding charges, according to Military Times.

Nevertheless, standard rules restrict government credit cards to use for official business.

Between July 1, 2013 and June 30, 2014, Department of Defense credit cards were used at such exotic locales as the VIP Room of the Sapphire Gentlemen's Club and Vegas Showgirls in Las Vegas; Larry Flynt's Hustler Club in Baltimore; and Dreams Cabaret in El Paso, Texas, the McClatchy Washington Bureau detailed.

"(Department) cardholders had 4,437 transactions totaling $952,258, where they likely used their travel cards at casinos for personal use and had 900 additional transactions for $96,576 at adult entertainment establishments," the report noted.

An enlisted sailor with the Naval Special Warfare Group, for example, made 12 transactions on a government credit card totaling $1,116 at adult-entertainment establishments while traveling on a 17-day business trip to El Paso, according to the Washington Post.

The same service member charged $648 on the same card for food, drinks and ATM withdrawals at other businesses on the same trip, the newspaper said based on the Inspector General report. The Navy only took disciplinary action against the sailor when the watchdog highlighted the expenses.

The Defense Travel Management Office plans to pursue new ways to better track improper use of government credit cards in response to the report, Military Times reported.

Nevertheless, Pentagon spokesman Lt. Cmdr. Nate Christensen said the Inspector General overstated the problems with the government credit card program.