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.

UPCOMING REPORTS

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

• Afghan National Army:  Assessment of U.S. Government Efforts to Train, Equip, and Mentor the Expanded Afghan National Army – Metrics.  The Afghan government and international community set the goal of having the Afghan army and police take the lead in their security operations in all Afghan provinces by the end of 2014.  This assessment captures metrics that address three key areas concerning ANA development:  Growth, Quality, and Afghan Transition. This will be a classified report.

• Assessment of the DoD Establishment of the Office of Security Cooperation – Iraq.  This assessment evaluates the sufficiency of actions taken to bring the Office of Security Cooperation – Iraq (OSC-I) to “initial operating capability” and identify impediments that may impact OSC-I achieving “full operating capability.”

• Vulnerability Assessments for the Defense Industrial Base.  The audit examines whether the DoD is performing defense industrial base vulnerability assessments and risk assessments to ensure critical assets are properly protected and whether mitigation plans are in place to cover critical assets.  This audit report will be For Official Use Only.

• Logistics Modernization Program System Abnormal Account Balance and Audit Trails for the Purchasing Cycle.  This audit examines whether appropriate controls are in place within the Logistics Modernization Program system to record the accounting transactions related to the purchase of goods and services.  Specifically, it examines the reasons for abnormal account balances or transactional relationships and determines whether the Logistics Modernization Program system properly supports the accounting transactions within the general ledger accounts with verifiable audit trails. 

• Internal Controls Over Distribution and Reconciliation of Funds for the Afghanistan National Army Payroll.  The audit examines whether adequate controls are in place to ensure that the North Atlantic Treaty Organization Training Mission-Afghanistan/Combined Security Transition Command – Afghanistan (NTM-A/CSTC-A) is distributing DoD funds accurately and timely to the Afghanistan Ministries for the Afghanistan National Army payroll.  In addition, the report examines whether NTM-A/CSTC-A implemented an adequate mentoring process to assist Afghanistan Ministries in providing accurate payments to its National Army personnel. 

• Assessment of DoD Wounded Warrior Matters – Camp LeJeune, NC.  This assessment, the third in a series of such assessments, evaluates the policies and processes in place to assist wounded warriors in their return to duty status or transition to civilian life at Camp LeJeune, North Carolina.

RECENTLY RELEASED REPORTS OF INTEREST (to view report, if available, please click on title)

Guidance Needed to Prevent Military Construction Projects From Exceeding the Approved Scope of Work (Report No. DODIG-2012-057) The Army and Air Force requirements development and design processes for the projects reviewed resulted in statements of work that had defined requirements, had measurable outcomes, and generally met DoD's needs. However, Army and Air Force officials did not construct primary facilities for three projects in accordance with facility sizes on the congressional request for authorization. In addition, Air Force Center for Engineering and the Environment officials improperly authorized the expenditure of at least $3.3 million for one project during the requirements development and design processes.

Navy Enterprise Resource Planning System Does Not Comply With the Standard Financial Information Structure and U.S. Government Standard General Ledger (Report No. DODIG-2012-051).  The Navy approved deployment of the Navy Enterprise Resource Planning (ERP) System without ensuring it complied with the Standard Financial Information Structure and the U.S. Government Standard General Ledger. As a result, the Navy spent $870 million to develop and implement a system that might not produce accurate and reliable financial information. If deployment is completed, the System will manage 54 percent of the Navy’s total obligation authority, which was valued at about $85 billion for FY 2011.

Congressionally Directed Investigation of Sensitive Compartmented Information Leaks within the Department of Defense (Report No. DODIG-2012-056).  This is in response to a provision in the Classified Annex of the FY 2012 House Defense Appropriations Bill, directing the Inspectors General of the Department of Defense and Central Intelligence Agency, in coordination with the IGs of affected agencies, to conduct an investigation on leaks of highly classified information.  This is an unclassified version of the report.

Substantiated Mental Health Evaluation in Reprisal for Protected Communications.  In February 2012, the DoD IG substantiated an allegation that a National Guard unit commander referred an Active Guard and Reserve (AGR) member for a mental health evaluation (MHE) in reprisal for AGR member’s protected communications.  The AGR member had alleged that a unit member drove a government vehicle while under the influence of alcohol and that his unit improperly used their government purchase card.  The IG also found that the unit commander and the unit's medical officer failed to follow the required procedures for an MHE. The IG further found that the unit's deputy commander restricted the service member from communicating with a Member of Congress and made false official statements regarding the commander's role in the mental health evaluation referral. This report is For Official Use Only.

DEFENSE CRIMINAL INVESTIGATIVE SERVICE HIGHLIGHTS

Former U.S. Army Corps of Engineers manager pleads guilty in alleged $20 million bribery and kickback scheme.  On February 13, 2012, Michael Alexander, a former program manager for the U.S. Army Corps of Engineers, pleaded guilty to bribery and conspiracy to commit money laundering in a scheme that allegedly involved more than $20 million in bribes and kickback payments.  The same day a defense contractor, Robert McKinney, president of Alpha Technology Group, pleaded guilty to bribery and agreed to forfeit about $245,000. This was a joint investigation with the FBI, Small Business Administration OIG, DCAA, IRS – Criminal Investigation, and the U.S. Army CID. 

Soldiers Return Home with Stolen Firearms.  On February 8, 2012, Specialist Michael Tutwiler, Virginia Army National Guard, pleaded guilty to one felony count of unlawful acts related to firearms and one misdemeanor count of theft of government property.  The investigation revealed that Tutwiler and four other soldiers were involved in the theft of U.S. government property during and after their deployments to Iraq in 2007 and 2008.  The stolen property primarily consisted of tactical equipment, gear, and ammunition.  The items normally would have stayed in Iraq for use by future troop rotations. The DCIS conducted this investigation jointly with the Virginia State Police.

Massachusetts Man Conspired to Illegally Export Equipment.  On January 20, 2012, Rudolf Cheung pleaded guilty to conspiracy to violate the Arms Export Control Act.  Cheung serves as the head of the Research and Development Department at Microwave Engineering Company, a private company that manufactures antennae.  Cheung was charged with conspiring to violate the Arms Export Control Act by selling and exporting military-grade antennas without obtaining required export licenses.  The DCIS conducted this investigation jointly with DHS, the FBI, and the U.S. Commerce Department’s Office of Export Enforcement. 

RECENTLY ANNOUNCED PROJECTS

RECENTLY ANNOUNCED PROJECTS

Joint Strike Fighter (F-35) Quality Assurance Assessment. The objective of this assessment is to assess the quality management system for the Joint Strike Fighter procured by DoD from Lockheed Martin Corporation. The assessments will be performed on-site at Lockheed Martin, Northrop Grumman, BAE, and various sub-contractor facilities. Specifically, the assessment will focus on conformity to specified quality management system(s), contractual quality clauses, and internal quality processes and procedures.

Assessment of Air Force Global Strike Command Organizational Structure, Roles and Responsibilities. The objective is to assess the effectiveness of basic roles and command relationships of the Air Force Global Strike Command and the units within the Command.  The assessment will be looking at efficiencies to be gained from consolidating levels of management.

Technical Assessment of Military Construction Compliance of Fire Suppression Systems in Afghanistan. The objective of this project is to determine whether fire suppression systems in selected U.S. occupied facilities in Afghanistan complied with United States Central Command Unified Facilities Criteria and National Fire Protection Association standards. We will assess U.S. occupied facilities in Kandahar, Bagram, Kabul, and other locations as necessary. We will also assess the status of DoD OIG recommended corrective actions from previous fire suppression system assessments.               

Technical Assessment of Military Construction Compliance of Electrical Standards in Afghanistan. The objective of this project is to determine whether electrical systems in selected U.S. occupied facilities are in compliance with the United States Central Command Unified Facilities Criteria and National Electric Code standards. The assessment will take place at U.S. occupied facilities in Kandahar, Bagram, Kabul, and other locations as necessary. We will also assess the status of DoD OIG recommended corrective actions from previous electrical system assessments.

Audit of the Defense Advanced Research Projects Agency's Ethics Program.  The audit objective is to determine whether DARPA's ethics policies and program implementation are consistent with Federal Government conflicts of interest mitigation standards, and whether DARPA personnel are properly trained and understand the policies.

Audit of Ballistic Missile Defense System Targets.  The audit objective is to evaluate whether the Ballistic Missile Defense System targetry provides realistic operational conditions for identified threats, and if the Target Program adapts to emerging threats.

Audit of Contracts Supporting the Defense Enterprise Accounting and ManagementSystem.  The audit objective is to examine whether DoD and U.S. Air Force officials administered contracts supporting the Defense Enterprise Accounting and Management System in an effective and efficient manner. Specifically, we will examine whether government oversight of contractor performance is adequate; quality assurance plans have been adequately implemented; contracts are funded in accordance with applicable regulations; and modifications that increase contract costs are properly supported.

Audit of Controls Over Cash and Other Monetary Assets at Overseas Army Finance Command Disbursing Operations.  The audit objective is to determine whether internal controls at the Army's disbursing stations in Saudi Arabia and Kuwait were effectively designed and operating adequately to safeguard, account for, document, and report cash and other monetary assets held at those sites. We will also evaluate whether the Army Finance Command effectively implemented technical oversight and provided assistance to the Army disbursing office in Saudi Arabia.

TESTIMONY/PREPARED STATEMENTS

The DoD IG issued a prepared statement on February 22, 2012, in response to a General Accountability Office (GAO) report entitled, “ Whistleblower Protection: Actions Needed to Improve DOD’s Military Whistleblower Reprisal Program (GAO-12-362).

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Unclassified reports are available for download on the DoD IG web site at http://www.dodig.mil/PUBS/.

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