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U.S. Army Central Did Not Implement Controls to Effectively Manage the Shared Cost of Administrative Support Functions in Iraq DODIG-2016-048

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Objective

Our objective was to determine whether DoD developed controls to effectively manage the shared costs of administrative support functions in Iraq. This audit relates to Operation Inherent Resolve, an overseas contingency operation, and was completed in accordance with the OIG’s responsibilities described in Section 8L of the Inspector General Act of 1978, as amended.

Finding

U.S. Army Central (ARCENT) initially signed an interagency agreement with the Department of State to temporarily use and pay for Department of State-provided life‑support services. However, during the third quarter of FY 2015, DoD agreed to subscribe to the Department of State’s International Cooperative Administrative Support Services (ICASS) for support in Iraq for FY 2016.

ARCENT did not develop controls to effectively manage the shared cost of administrative support functions in Iraq after FY 2016. Specifically, ARCENT did not: 

  • establish procedures to determine and verify ICASS modification levels and workload counts;
  • designate a representative to participate in the post’s ICASS budget committee or council; or
  • require ICASS training for personnel before deployment.

This occurred because ARCENT and Combined Joint Task Force–Operation Inherent Resolve did not determine who would be responsible for implementing ICASS in Iraq.

As a result, without appropriate controls, DoD cannot ensure that the shared costs of administrative support services are appropriately calculated and distributed for the fiscal years after FY 2016, and DoD is at increased risk of overpaying for ICASS shared costs.

Management Actions

On November 7, 2015, we informed the ARCENT Deputy Chief of Staff that the temporary measures ARCENT enacted did not establish controls over the shared cost of administrative functions in Iraq after FY 2016. Specifically, ARCENT or Combined Joint Task Force–Operation Inherent Resolve needed to take responsibility for ICASS implementation, including establishing standard operating procedures to develop controls to determine and verify ICASS modification levels and workload counts; designate representatives to the post’s ICASS budget committee or council; and require training for deploying units so they fully understand their roles and responsibilities for ICASS.

ARCENT’s Deputy Chief of Staff agreed with our observations and immediately initiated steps to implement our suggested corrective actions. Specifically, in December 2015, ARCENT developed standard operating procedures in which it formally accepted responsibility for ICASS implementation. The management actions taken during the audit addressed our suggestions, so we are not making any recommendations.

This report is a result of Project No. D2015-D000JB-0246.000.