Publicly Released: October 19, 2021
We prepared this management advisory in accordance with the Council of Inspectors General for Integrity and Efficiency’s Quality Standards for Federal Offices of Inspector General, which require that we conduct our work with integrity, objectivity, and independence. The purpose of this memorandum is to advise Army officials responsible for the accountability and reporting of government-furnished property (GFP) of the internal control weaknesses we identified during fieldwork conducted in Kuwait for the Audit of U.S. Army Base Operations and Security Support Services Contract Government-Furnished Property in Kuwait. We identified internal control weaknesses with the cost information within:
- Global Combat Support System-Army (GCSS-Army), the Army accountable property system of record; and
- Army Enterprise System Integration Program (AESIP), which is used to report the value of Government Property, including GFP, to the Army financial statements.
The internal control weaknesses we have identified here may impact the Army’s accountable property records and financial statements. However, the scope of our audit was focused on the accountability of GFP provided to contractors under the U.S. Army Base Operations and Security Support Services Contract. Our audit did not focus on the overall accuracy of the Army’s cost information within GCSS-Army and AESIP; nor the impact on its financial statements. Therefore, we are requesting that the Army officials responsible for GFP accountability and reporting determine whether the internal control weaknesses we have identified are systemic, and their potential impact on the Army’s financial statements.