Feb. 22, 2018

Project Announcement: Audit of Logical and Physical Access Controls for Protecting Ballistic Missile Defense System Technical Information at DoD Facilities (Project No. D2018-D000CR-0106.000)

We plan to begin the subject audit in February 2018. We are announcing this audit in response to a congressional request in a classified annex to the National Defense Authorization Act of FY 2017. This is the second and final audit related to the FY 2017 congressional request on protecting ballistic missile defense system technical information. Our objective is to determine whether the DoD Components implemented effective security controls and processes at DoD facilities to protect classified and unclassified Ballistic Missile Defense System technical information from internal and external cyber threats. This is report Security Controls at DoD Facilities for Protecting Ballistic Missile Defense System Technical Information DODIG-2019-034.

Feb. 21, 2018

Financial Management and Contract Award and Administration for the Armed Forces Retirement Home DODIG-2018-077

We determined whether officials conducted effective financial management and contract award and administration for the Armed Forces Retirement Home (AFRH). Section 418, title 24, United States Code, requires the DoD Office of Inspector General (DoD OIG) to perform a comprehensive inspection of the AFRH. This is the second report in a series that will collectively meet this requirement.

Feb. 20, 2018

Project Announcement: Audit of Distribution of Critical Munitions in Support of the Republic of Korea (Project No. D2018-D000RG-0104.000)

We plan to begin the subject audit in February 2018. Our objective is to determine whether the U.S. Pacific Command and U.S. Forces Korea have a distribution network to receive and deliver critical munitions in support of operation plan requirements.

Feb. 18, 2018

Project Announcement: Audit of the Navy and Marine Corps' Backup Aircraft and Depot Maintenance Float for Ground Combat and Tactical Vehicles (Project No. D2018-D000AT-0091.000)

We plan to begin the subject audit in January 2018. Our objective is to determine whether the Navy and Marine Corps have sufficient quantities of backup aircraft and depot maintenance float for ground combat and tactical vehicles. This is report Navy and Marine Corps Backup Aircraft and Depot Maintenance Float for Ground Combat and Tactical Vehicles DODIG-2019-047.

Feb. 14, 2018

Project Announcement: Contract Oversight of the Audit of the U.S. Army Corps of Engineers-Civil Works Basic Financial Statements for Fiscal Years Ending September 30, 2018, and September 30, 2017 (Project No. D2018-D000FI-0085.000)

Our planned oversight will begin immediately. The audit of the U.S. Army Corps of Engineers-Civil Works Basic financial Statements is required by Office of Management and Budget Bulletin No. 17-03, "Audit Requirements for Federal Financial Statements." The Chief Financial Officers Act of 1990, as amended, requires that financial statements of a Government agency be audited by the Inspector General or by an independent external auditor, as determined by the Inspector General. We contracted with the independent public accounting firm of KPMG, LLP, (KPMG) to audit the U.S. Army Corps of Engineers-Civil Works Basic Financial Statements for fiscal years ending September 30, 2018, and September 30, 2017. The objective of the audit is to determine whether the financial statements and related note disclosures were fairly presented in all material respects and in conformity with accounting principles generally accepted in the United States of America. This is report Transmittal of Independent Auditor's Report on the Defense Logistics Agency Military Construction Funds Sub-Allotted to the U.S. Army Corps of Engineers-Military Programs' Financial Statements and Related Notes for FY 2018 and FY 2017 DODIG-2019-005.

Feb. 14, 2018

Project Announcement: Contract Oversight of the Audit of the Funds Sub-Allotted to the U.S. Army Corps of Engineers (Project No. D2018-D000FI-0086.000)

Our planned oversight will begin immediately. We contracted with the independent public accounting firm of KPMG, LLP, (KPMG) to audit the funds sub-allotted to the U.S. Army Corps of Engineers by the U.S. Army General Fund, the Defense Logistics Agency, and other Defense organizations. The objective of the audit is to determine whether the financial statements and related note disclosures of the U.S. Army General Fund and Defense Logistics Agency Military Construction funds sub-allotted to the U.S. Army Corps of Engineers for the year ending September 30, 2018, were fairly presented in all material respects and in conformity with accounting principles generally accepted in the United States of America. In addition, KPMG will audit the FY 2018 closing balances of the funds sub-allotted to the U.S. Army Corps of Engineers to ensure those balances can be used as the FY 2019 beginning balances. This is report Transmittal of the Independent Auditor's Report on the Army Military Construction Funds Sub-Allotted to the U.S. Army Corps of Engineers-Military Programs' Financial Statements and Related Notes for FY 2018 DODIG-2019-007.

Feb. 13, 2018

Completeness and Accuracy of U.S. Army Corps of Engineers Improper Payment Estimates DODIG-2018-073

We reviewed Fiscal Year 2016 payments in the U.S. Army Corps of Engineers Travel and Commercial Pay programs and compared those payments to the total payments reported in the DoD Fiscal Year 2016 Agency Financial Report to determine if USACE accurately identified improper payments. The audit determined that USACE Finance Center (UFC) personnel did not accurately report the total payments, the improper payment estimate, or the improper payment rate for the Commercial Pay program in the DoD Fiscal Year 2016 AFR. The audit also determined that UFC personnel did not accurately report the Travel Pay universe, improper payment estimate, and the improper payment rate for the USACE Travel Pay program in the DoD FY 2016 AFR. As a result, UFC personnel made $2.25 million in improper payments for the 1,293 sample items reviewed by USACE.

Feb. 13, 2018

The U.S. Navy’s Oversight and Administration of the Base Support Contracts in Bahrain DODIG-2018-074

The U.S. Navy did not provide effective oversight of the base support contracts in Bahrain. Specifically, contracting officer’s representatives relied on foreign national direct-hire or contractor performance assessment representatives to execute all quality assurance oversight of the contractors. However, the contracting officer’s representatives did not ensure the performance assessment representatives oversaw all contractual requirements. In addition, the contracted performance assessment representatives at one base performed oversight tasks that approached inherently governmental functions. As a result, NAVFAC did not have assurance that the $161.5 million the U.S. Navy paid for base support resulted in adequately performed or contractually compliant services.

Feb. 12, 2018

Defense Commissary Agency’s Purchases of Fresh Produce for Japan and South Korea DODIG-2018-072

We determined the impact of the current local purchase process by the Defense Commissary Agency (DeCA) for fresh produce versus the previous DoD-funded transportation process in the Pacific. Specifically, we reviewed the impact as it pertains to the cost and freshness (quality) of fresh produce on DeCA and the DeCA customers in Japan and South Korea.

Feb. 12, 2018

Project Announcement: Audit of DoD Voluntary Education Programs (Project No. D2018-D000RK-0103.000)

We plan to begin the subject audit in February 2018. Our objective is to determine whether Military installations have controls in place for DoD Voluntary Education programs to prevent improper recruiting practices of service members by for-profit educational institutions.