Jan. 11, 2017
Combined Security Transition Command-Afghanistan Improved Controls Over U.S.-Funded Ministry of Defense Fuel Contracts, but Further Improvements are Needed (Redacted)
We determined whether the Combined Security Transition Command–Afghanistan (CSTC-A) and the Afghanistan Ministry of Defense (MoD) established effective controls for the oversight of MoD fuel contracts.
In 2011, the Office of the Under Secretary of Defense (Comptroller)/Chief Financial Officer authorized CSTC-A to provide Afghanistan Security Forces Fund (ASFF) resources directly to the Afghanistan MoD to sustain the Afghanistan National Defense and Security Forces.
CSTC-A is the DoD command that provides oversight and ensures adequate fiscal controls are in place to safeguard ASFF direct contributions provided to the Afghanistan ministries.
CSTC-A and MoD sign annual Bilateral Financial Commitment Letters (commitment letters) that commit CSTC-A to fund specified portions of the MoD budget. The commitment letters serve as bilateral agreements between CSTC-A and Government of the Islamic Republic of Afghanistan (GIRoA) and are intended to assist the GIRoA in implementing the necessary oversight and controls to satisfy auditors and the international community.
We audited CSTC-A controls of two MoD-awarded, ASFF-funded contracts that provide vehicle and generator fuel to the Afghanistan National Army (ANA). The contracts, awarded in January 2016, have an aggregate ceiling value of $174.7 million.