IG Monthly Newsletter

May 2011

The purpose of the “DoD IG Update” is to make the organization more transparent. Transparency is one of the ways we can demonstrate how we live up to our core values of accountability, integrity, efficiency, and excellence. If you have any questions or suggestions, please reply to IGUpdate@dodig.mil.

Gordon Heddell

UPCOMING REPORTS

Significant reports expected to be released within the next 30 days include:

Excess Inventory and Contract Pricing Problems Jeopardize the Army Contract with Boeing to Support Corpus Christi Army Depot – This audit reviews issues involving excess inventory and contract pricing problems related to the partnership agreement in place with Boeing to provide materials to the depot.

Information Security Controls Over the Marine Corps Total Force System Need Improvement – This audit reviews whether vulnerabilities within the Marine Corps Total Force System (MCTFS) application and mainframe operating system have been properly detected and remediated. During 2009, the system paid out more than $10.7 billion to active duty and reserve Marines. The system also maintains more than 500,000 active, reserve, and retiree records.

Assessment of the Department of Defense Efforts to Develop an Effective Medical Logistics System within the Afghan National Security Forces – In response to a request by the Commander, NATO Training Mission-Afghanistan/Combined Security Transition Command-Afghanistan (NTM-A/CSTC-A), the DoD IG assessed the systems in place and being developed for procurement and distribution, storage, accountability and use of pharmaceuticals for the Afghan National Army and the advisory and oversight mechanisms of the NTM-A/CSTC-A Medical Training Advisory Group and Logistics Training Advisory Group.
Investigation of a Questionable Intelligence Activity (ASD/SOLIC&IC) – In response to a request from the Assistant Secretary of Defense for Special Operations/Low-Intensity Conflict and Independent Capabilities, this investigation reviews an allegation of questionable intelligence activities by government and contractor personnel. (This report is classified).

RECENTLY RELEASED REPORTS OF INTEREST

Independent Professional Engineering Assessment of Final Environmental Assessment, dated July 2008, and Transportation Management Plan, dated July 2010, for BRAC 133 at the Mark Center – The assessment was undertaken in response to a requirement of the Ike Skelton National Defense Authorization Act for Fiscal Year 2011, Section 2704, "Transportation Plan for BRAC 133 Project under Fort Belvoir, Virginia, BRAC Initiative," (Public Law 111-383). The Act directed that the DoD IG “submit to the congressional defense committees a report evaluating the sufficiency and coordination conducted in completing the requisite environmental studies associated with the site selection of the BRAC 133 project.” To see the report, click here.

DoD Needs to Improve High Dollar Overpayment Review and Reporting (Report No. D-2011-050) – This audit determined that the First Quarter FY 2010 High Dollar Overpayments Report, issued by the Under Secretary of Defense (Comptroller)/Chief Financial Officer was inaccurate and incomplete. Specifically, DoD did not review approximately $167.5 billion of the $303.7 billion in gross outlays for high dollar overpayments. Additionally, some overpayments were not reported, and the Overpayments Report did not include sufficient information about recoveries and corrective actions. To see the report, click here.

American Recovery and Reinvestment Act Project-Repair and Modernization of Training Center in Anchorage, Alaska, Generally Met Recovery Act Goals (Report No. D-2011-057) – This report determined that personnel from Marine Forces Reserve, the U.S. Army Engineering and Support Center in Huntsville, Alabama, and the U.S. Army Corps of Engineers, Alaska District, generally met the Recovery Act goals for accountability in accordance with Public Law 111-5, “American Recovery and Reinvestment Act of 2009,” February 17, 2009. To see the report, click here.

DoD Efforts to Protect Critical Program Information: The Air Force's Family of Advanced Beyond Line-of-Sight Terminals (Report No. 11-INTEL-08) - This assessment is the second in a series of assessments to determine how DoD protects critical program information. Specifically, the report examines the Air Force program in eight key areas critical to program protection. The full report is For Official Use Only, but to see the releasable "Results in Brief," click here.

Oversight Review Report on Hotline Allegations Concerning a Field Audit Office in the Defense Contract Audit Agency Central Region (Report No. D-2011-6-007) – This review substantiated four of six allegations, including that the supervisor unnecessarily caused a delay in the complainant's promotion from grade 9 to grade 11; the supervisor failed to provide adequate supervision and on-the-job training; the supervisor improperly removed an audit, and the field office manager created an unprofessional work environment. DCAA agreed with all findings and recommendations and provided an adequate action plan. To see a redacted copy of the report, click here.

TESTIMONY/PREPARED STATEMENTS

On April 25, 2011, Mr. Daniel R. Blair, Deputy Inspector for Auditing, Department of Defense Inspector General, testified before the Commission on Wartime Contracting on “Implementing Improvements to Defense Wartime Contracting.” To see the prepared statement by Mr. Blair, click here.

DEFENSE CRIMINAL INVESTIGATIVE SERVICE HIGHLIGHTS

DCIS Badge Marine Major Sentenced for Receiving Illegal Gratuities
On April 25, 2011, former Marine Major Richard Joseph Harrington was sentenced in U.S. District Court in the Eastern District of North Carolina to 12 months and one day imprisonment followed by one year supervised release for seeking and receiving gratuities while serving as a contracting officer deployed to Camp Fallujah, Iraq. For more information, click here.

Former Employee of the Command Surgeon General’s Office, U.S. Army Special Operations Command, Convicted of Extortion and Bribery
On April 12, 2011, a federal jury in Greenville, N.C., convicted Joseph J. Marak of one count of extortion, seventeen counts of bribery, and seventeen counts of receiving a gratuity. Marak is a former employee of the Command Surgeon General’s Office, United States Army Special Operations Command. For more information, click here.

RECENTLY ANNOUNCED PROJECTS

Audit of Medical Staffing and Specialty Care Requirements in Guam
This is the second in a series of audits regarding the adequacy of medical plans related to the realignment of military members and their families to Guam. We will determine whether the methodology and plan ensure that eligible beneficiaries have adequate access to care given the expected population increases resulting from the realignment in Guam.

Audit of Accounting for Residual Value from the Sale of U.S. Facilities in Europe
This audit will determine whether DoD personnel properly submitted residual value claims for returned facilities, such as buildings and other structures, and obtained monetary or non-monetary consideration, and properly accounted for the use of residual value amounts.

Assessment of the DoD Establishment of the Office of Security Cooperation-Iraq
The broad objective of this project is to assess progress made by the DoD toward establishing the Office of Security Cooperation-Iraq. Specifically, we will assess: 1) execution of the plan to transition authority, personnel, and equipment for the OSC-I from DoD to the Department of State, and 2) sufficiency of the OSC-I to carry out its mission to support the development of the Iraqi Security Force capability.

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