expeditionary auditing, organizing, and doing presentation to: american society of military...
TRANSCRIPT
EXPEDITIONARY
AUDITING, ORGANIZING, AND DOING
Presentation To:
American Society of Military Comptrollers
By:
Mr. Benny Piccolo
Principal Deputy Auditor General
3 June 2010
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TALKING POINTS
Agency Overview
You Know You’re Deployed When
Civilian Deployment
Southwest Asia Operations – Today’s Risk Areas
Ongoing and Future Work
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AGENCY OVERVIEW
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Organizational Alignment
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What do we do for the U.S. Army?
Our mission is not to find problems. We set out to provide Army leaders
assurance that:
Policies, programs, organizations, systems and operations are
achieving their objectives.
Resources are efficiently used and properly safeguarded.
Laws and regulations are complied with.
Internal controls and oversight are in place and operating to prevent
fraud, waste, and abuse.
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AAA in OCOPast, Present, & Future
Support dates back to Vietnam War era. Operations Desert Storm. Bosnia and Kosovo.
OEF/OIF Iraq Vested and Seized Assets. GEN Casey/LOGCAP Auditors deployed (2005 – Permanent Presence) Expeditionary Support Audits team (2008 – Dedicated Team)
Way Ahead – Working with Army leadership to be part of future contingency plans.
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Audit Accomplishments
Audit reports covering a wide range of issues
in support of contingency operations. Contracting
ACC JCC-I/A USACE
Financial Management CERP/Quick Reaction Fund Vendor Payments
Logistics Containers Government Property LOGCAP Retrograde
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Deployment
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You know you’re deployed
when…
Everyone eats at the same DFAC… 9
All rides are chauffeured…
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Auditors are taught to fire a weapon…
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You live with your 20 closest friends… that you just met.
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A bed and walls are considered “fancy”!
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The bathroom is:- plastic- protected with barbed wire- cleaned with a water hose
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Or in special situations…flushable!
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You learn the proper disposal method for water bottles…
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The beach comes to you…17
The client is just a step away…18
Anybody need a lift?19
DEPLOYMENTS
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Civilian Pre-Deployment
Official Passport Pre-Deployment Health Assessment CRC
Legal Matters Gear First Aid Weapons Familiarization IED Training Final Medical Screening
Audit Coordination (DODIG/CENTCOM/DA)
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Civilian Deployment
Transportation Housing Hygiene Communications Office Space Personal Time Food & Water Troop Medical Center
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Civilian Redeployment
Transportation CRC Post Deployment Health Assessment Re-integrate Technology
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SOUTHWEST ASIA OPERATIONS
Audit Risk Areas
Responsible Drawdown Afghan Buildup Contingency Contracting Expeditionary Financial Management Responsible Reset
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Oversight Activities
Air Force Audit Agency Commission on Wartime Contracting Criminal Investigation Command Defense Contract Audit Agency Defense Contract Management
Agency Defense Criminal Investigative Defense Intelligence Agency
Service
Department of Justice Department of State Inspector General DOD Inspector General Federal Bureau of Investigation Government Accountability Office Special IG for Iraq/Afghanistan
Reconstruction U.S. Agency for International
Development
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USAAA is one of several audit and investigative agencies that make up the oversight community in Southwest Asia.
Audit Coordination
Several mechanisms in place to ensure adequate audit coverage and prevent duplication of effort. Southwest Asia Joint Planning Group Special Inspector General for SWA, DOD-IG Inspector General Offices –
ARCENT CENTCOM USF-I USFOR-A
International Contracting Corruption
Task Force
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Current Audit Work
Vendor Pay Equipment Disposal Contracting Attestations
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Vendor Pay
Audit of Controls Over Vendor Payments (Iraq, Afghanistan, Kuwait, Qatar) Hard copy voucher packages didn’t provide sufficient support to
validate vendor payments. AAA identified error rate: 50% (563 of 1,116) statistical sample vouchers. 27% (105 of 394) judgmental (on-site) sample vouchers.
Automated data didn’t always match hardcopy voucher packages or actual operations.
Dollar value disbursement mismatch to documentation. Manual exchange rate losses.
Numerous breakdowns with purchasing, accountability, and payments processes.
Limited Depository Accounts (LDAs) not reconciled.
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Vendor Pay
Working relationship and initiatives between the fiscal triad weren’t synchronized.
Inconsistently applied retrograde initiatives.
Cash on the Battlefield. Identified CVS training gaps.
Function only performed in theater.
Stove piped systems training. Insufficient internal control
program – checklist mentality. 15-6 Investigations and CID
referrals.
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Vendor Pay
Actions Taken: Vendor Pay Summit (April 2010) - members of fiscal triad
collaboratively worked through contracting and payment issues. Finance Management Workshop (May 2010) - addressed training
and automation challenges. Finance Management Command - revising internal control
program (incorporating risk assessment). We recommended:
Re-report material weakness for hard copy audit trail. Report material weakness for automated audit trail. Incorporate high risk areas into inspection programs. Monitor and limit the use of LDAs. Investigate, correct, and report loss of funds for questionable and
invalid payments and exchange rate losses.
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Equipment Disposal
Audit of Disposal of Army Equipment and Materiel into DRMO (Iraq) Units supported the drawdown by disposing of unserviceable, non-
reparable items into DRMO sites as permitted by guidance. However, we also determined that:
All four DRMO sites in Iraq have the same RIC causing the SSAs SARSS to route DRMO shipments to Balad, not the nearest DRMO.
Unit’s are not always aware of proper disposition procedures for equipment and materials.
Recommended:
Create unique RICs for each DRMO.
Create a portal on USF-I website with disposal and turn-in procedure information.
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Equipment Disposal
Audit of Disposal of Army Equipment and Materiel into Dump sites (Iraq) Lack of monitoring and effective controls allow military equipment,
hazardous waste and material, and items prohibited by USF-I Environmental SOP to enter Garrison dumpsites and trash disposal operations.
Units are disposing of government property in dumpsters and base dumpsites.
Disposal sites contain hazardous waste and prohibited items. Unsorted solid waste is shipped to off-site locations.
We recommended: Close solid waste sites when other disposal avenues are available. Sort and remove prohibited items from trash before transporting to off
FOB/COB dumpsite and send prohibited items to proper disposal facilities.
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Pictures
Pictures
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Contracting
Audit of Base Life Support Contracts – Basra, Iraq Collectively the support contracts were not cost effective.
Reviewed 13 contracts representing 16 services awarded in 2009. Contract costs were $76.8M or 103% higher than IGE ($37.9M).
Contracts were poorly developed. Contracting and unit personnel rushed to award contracts due to British forces leaving and U.S. forces needing base life support.
Made modifications totaling $18.9M within first year of award. Raised total cost of the contracts to over $95M (in line with LOGCAP
contract costs at similar sized FOBs). Identified out of scope work directed by unit representatives.
We recommended: Develop new PWS for 10 services to be re-solicited. Evaluate out of scope work for ratification/recoupment of payment. Additional COR training for legal and ethical responsibilities.
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Contracting
Audit of Camp Buehring Fuel Farm Operations (Kuwait) Lack of controls for proper fuel accountability.
Inventory measurements not standard or estimated. Inadequate theft detection and prevention.
Insufficient government oversight of contracted security services. Identified weaknesses at entry control points. Debarment action not initiated.
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We recommended: Use calibrated gauging sticks. Establish standard reference. Issue and record all truck seals.Reconcile seal log with shipping
documents. Reconcile daily meter readings to
fuel transactions.
Attestations
We coordinate with and make referrals to investigative agencies. US Army Criminal Investigation Command Defense Criminal Investigative Service Federal Bureau of Investigation Internal Revenue Service
Receive requests for limited scope reviews. Contract Terms Controls for Safeguarding Assets Data Analysis Logistics Issues Vendor Payments
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Ongoing and Future Work
LOGCAP IV Retrograde Equipment transfers Return of Assets from SWA Army Prepositioned Stock
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Contact Information
Mr. Benny Piccolo
Principal Deputy Auditor General
(703) 681-9802
Ms. Monique Ferrell
Program Director, Expeditionary Support Audits
DSN (314) 421-2996
Ms. Crystal BeardSenior Auditor
Expeditionary Support [email protected]
(210) 221-1758
Ms. Janet Stallings
Audit ManagerExpeditionary Support [email protected]
(910) 396-1981
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Closing Comments
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