Iraq Security Forces Fund Mismanagement: Full Report

provides the entire shocking report exposing the loss of more than $ 1 billion of military equipment and support on its website. Iraq Security Forces Fund Mismanagement: Full ReportBy Cliff Montgomery – Dec. 9th, 2007 here provides the entire text of the most recent Pentagon Inspector General report on the (mis)management of the Iraq Security Forces Fund in Southwest Asia, which was released on Thursday.The study revealed that more than $1 billion of American military assistance allocated for Iraqi security forces is now missing–and that the Pentagon cannot account for the whereabouts of any of the lost military hardware, money, and services. See Friday’s American Spark article for more background on this shocking story.We quote from the study’s somewhat dry, but very informative, executive summary below:Background“Public Law 109-13, ‘Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Tsunami Relief, 2005,’ May 11, 2005, provided $5.7 billion for the Iraq Security Forces Fund, of which the Commander, Multi-National Security Transition Command-Iraq received $5.2 billion. The funds were to be used to provide equipment; supplies; services; training; and facility and infrastructure repair, renovation, and construction for the Iraq Security Forces.”We performed the audit as required by Public Law 109-234, ‘Emergency Supplemental  Appropriations Act for Defense, the Global War on Terror, and Hurricane Recovery, 2006,’ June 15, 2006. […] We determined whether the Multi-National Security Transition Command-Iraq properly accounted for the services, equipment, and construction purchased for the Iraq Security Forces using the Iraq Security Forces Fund, and whether the delivery of services, equipment, and construction was properly made.Results“The Multi-National Security Transition Command-Iraq was not able to demonstrate proper accountability for and management of the Iraq Security Forces Fund, and could not always demonstrate that the delivery of services, equipment, and construction was properly made to the Iraq Security Forces.”As a result, the Multi-National Security Transition Command-Iraq was unable to provide  reasonable assurance that Iraq Security Forces Fund achieved the intended results, that resources were used in a manner consistent with the mission, and that the resources were protected from waste and mismanagement.”In addition, several transactions resulted in $1.8 million of funds that could be put to better use. Those transactions were not identified for de-obligation by the required Multi-National Security Transition Command-Iraq tri-annual reviews.”We recommend that the Commander, Multi-National Security Transition Command-Iraq  establish internal controls and specific procedures for forward-deployed personnel to follow in maintaining adequate oversight of obligated funds and retaining accountable property records for expenditure of wartime funding.”Also, the Commander, Multi-National Security Transition Command-Iraq should develop standard operating procedures for processing, managing, and overseeing Military Interdepartmental Purchase Requests.”In addition, the Commander, Multi-National Security Transition Command-Iraq should identify personnel requirements for proper sourcing in the Joint Manning Document it submits through Multi-National Force-Iraq, U.S. Central Command, to the Joint Staff and the Office of the Secretary of Defense.”We recommend that the Commander, Multi-National Security Transition Command-Iraq establish procedures that ensure compliance with the DoD Financial Management Regulation for performing and documenting tri-annual validation reviews of un-liquidated obligations, and establish controls to de-obligate funds efficiently.”We also recommend that the Commander, Multi-National Security Transition Command-Iraq, in conjunction with the Defense Finance and Accounting Service, conduct an assessment of financial management functions (such as financial reporting, accounts payable, and cost accounting) that could be transferred outside of Iraq to ease the strain on the Command’s accounting personnel.Management Comments and Audit Response“The Commander, Multi-National Security Transition Command-Iraq concurred with four of the recommendations, non-concurred with one of the recommendations, and partially concurred with one of the recommendations. The Commander’s comments were fully responsive. […]”Although not required to comment, the Chief Audit Executive, Headquarters U.S. Army Corps of Engineers Internal Review Office provided comments on the draft report regarding prompt-payment discounts.”The Chief Audit Executive stated that, for all transactions entered in it, the Corps of Engineers Financial Management System automatically records the discount taken, returns the discount to the obligation, de-obligates the discount, and returns the discount amount to the funding account.”We concur that the Corps of Engineers Financial Management System automatically calculates the discounts for transactions, as the Chief Audit Executive stated; however, sufficient documentation has not been provided that all discounts taken were de-obligated and returned to the funding account.”We require no further comments from the U.S. Army Corps of Engineers.”Like what you’re reading so far? 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