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EXPEDITIONARY AUDITING, ORGANIZING, AND DOING Presentation To: American Society of Military Comptrollers By: Mr. Benny PowerPoint Presentation
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EXPEDITIONARY AUDITING, ORGANIZING, AND DOING Presentation To: American Society of Military Comptrollers By: Mr. Benny - PowerPoint PPT Presentation


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EXPEDITIONARY AUDITING, ORGANIZING, AND DOING Presentation To: American Society of Military Comptrollers By: Mr. Benny Piccolo Principal Deputy Auditor General 3 June 2010. TALKING POINTS. Agency Overview You Know You’re Deployed When Civilian Deployment

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slide1
EXPEDITIONARY

AUDITING, ORGANIZING, AND DOING

Presentation To:

American Society of Military Comptrollers

By:

Mr. Benny Piccolo

Principal Deputy Auditor General

3 June 2010

talking points
TALKING POINTS
  • Agency Overview
  • You Know You’re Deployed When
  • Civilian Deployment
  • Southwest Asia Operations – Today’s Risk Areas
  • Ongoing and Future Work
what do we do for the u s army
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.
aaa in oco past present future
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.
audit accomplishments
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
deployment
Deployment

You know you’re deployed when…

civilian pre deployment
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)
civilian deployment
Civilian Deployment
  • Transportation
  • Housing
  • Hygiene
  • Communications
  • Office Space
  • Personal Time
  • Food & Water
  • Troop Medical Center
civilian redeployment
Civilian Redeployment
  • Transportation
  • CRC
  • Post Deployment Health Assessment
  • Re-integrate
  • Technology
audit risk areas
Audit Risk Areas
  • Responsible Drawdown
  • Afghan Buildup
  • Contingency Contracting
  • Expeditionary Financial Management
  • Responsible Reset
oversight activities
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
  • USAAA is one of several audit and investigative agencies that make up the oversight community in Southwest Asia.
audit coordination
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

current audit work
Current Audit Work
  • Vendor Pay
  • Equipment Disposal
  • Contracting
  • Attestations
vendor pay
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.
vendor pay30
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.
vendor pay31
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.
equipment disposal
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.
equipment disposal33
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.
contracting
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.
contracting37
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.
  • 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
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
ongoing and future work
Ongoing and Future Work
  • LOGCAP IV
  • Retrograde
  • Equipment transfers
  • Return of Assets from SWA
  • Army Prepositioned Stock
contact information
Contact Information

Mr. Benny Piccolo

Principal Deputy Auditor General

Benjamin.Piccolo@us.army.mil

(703) 681-9802

Ms. Monique Ferrell

Program Director, Expeditionary Support Audits

Monique.Ferrell@us.army.mil

DSN (314) 421-2996

Ms. Crystal Beard

Senior Auditor

Expeditionary Support Audits

Crystal.Beard@us.army.mil

(210) 221-1758

Ms. Janet Stallings

Audit Manager

Expeditionary Support Audits

Janet.Stallings@us.army.mil

(910) 396-1981