Report Contents
Report Terms
Report Recommendations
(Ref A.1.a.) We recommend that the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs, in coordination with the Chief Financial Officer, Bureau of Resource Management, return the $15.56 million of DoD funds that were outside the scope of the reimbursable agreement by August 31, 2011. Specifically, return and document the following amount: a. $2.59 million potentially moved to Department of State administrative costs.
(Ref A.1.b.) We recommend that the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs, in coordination with the Chief Financial Officer, Bureau of Resource Management, return the $15.56 million of DoD funds that were outside the scope of the reimbursable agreement by August 31, 2011. Specifically, return and document the following amounts: $1.15 million obligated for the Department of Justice Federal Prosecutors Program, or provide documentation to the Under Secretary of Defense for Policy and the Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD, and DoD officials agree that the $1.15 million was within the scope of the reimbursable agreement.
(Ref A.1.c.) We recommend that the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs, in coordination with the Chief Financial Officer, Bureau of Resource Management, return the $15.56 million of DoD funds that were outside the scope of the reimbursable agreement by August 31, 2011. Specifically, return and document the following amounts: $14,996 obligated for Department of State travel costs to the U.S. Embassy in South Korea.
(Ref A.1.d.) We recommend that the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs, in coordination with the Chief Financial Officer, Bureau of Resource Management, return the $15.56 million of DoD funds that were outside the scope of the reimbursable agreement by August 31, 2011. Specifically, return and document the following amounts: $11.81 million obligated for a DynCorp equitable adjustment for contract task order S-AQMPD-04F-0460, awarded in 2004 before the 2006 agreement.
(Ref A.2.a.) We recommend that the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs, in coordination with the Contracting Officer, Bureau of Administration, Office of Logistics Management, Office of Acquisitions Management: Determine how much of the $68.21 million of unexpended obligations remaining on task order S-AQMPD-05F-4305 can be deobligated. As part of the review, include the DoD obligation amount that DynCorp certified as available for deobligation, as well as an analysis on the remaining unexpended obligation amounts. In addition, provide the Department of State, Office of Inspector General, supporting documentation for the remaining amount of the $68.21 million that the Bureau of International Narcotics and Law Enforcement Affairs identifies as still valid.
(Ref A.2.b.) We recommend that the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs, in coordination with the Contracting Officer, Bureau of Administration, Office of Logistics Management, Office of Acquisitions Management: Determine how much of the $23.04 million of DoD unexpended obligations remaining on the in-country air support contract (S-AQMPD-05-C-1103) can be deobligated. In addition, provide the Department of State, Office of Inspector General, supporting documentation for the remaining amount of the $23.04 million that the Bureau of International Narcotics and Law Enforcement Affairs identifies as still valid.
(Ref A.3.a) We recommend that the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs, provide supporting documentation to the Department of State Inspector General by July 29, 2011, for the $2.25 million of unsupported obligations identified in this report or return the $2.25 million to Department of Defense by August 30, 2011. Specifically, the Executive Director should review and, if necessary, deobligate the following amounts: $1.65 million obligated for Department of State salaries using DoD funds provided in the 2006 reimbursable agreement.
(Ref A.3.b.) We recommend that the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs, provide supporting documentation to the Department of State Inspector General by July 29, 2011, for the $2.25 million of unsupported obligations identified in this report or return the $2.25 million to Department of Defense by August 30, 2011. Specifically, the Executive Director should review and, if necessary, deobligate the following amounts: $604,847 for Department of State personnel salaries.
(Ref A.4) We recommend that the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs, in coordination with the Contracting Officer, Bureau of Administration, Office of Logistics Management, Office of Acquisitions Management, identify and return unexpended obligations not likely to be expended as soon as possible, but no later than 6 months after the period of performance for DoD-funded requirements related to task order S-AQMMA-08F-5375 and S-AQMMA-10F-2708 ends.
(Ref A.5.a) We recommend that the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs: Return to DoD and properly record the $3.99 million of unobligated DoD funds by August 31, 2011, unless INL provides documentation to the Under Secretary of Defense for Policy and the Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD, and DoD officials agree that the obligations were within the scope of the reimbursable agreements.
(Ref A.5.b.1) We recommend that the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs: Develop, implement, and document adequate controls to ensure that the Bureau of International Narcotics and Law Enforcement Affairs uses DoD funds for specific purposes in accordance with laws and documents the appropriate use. Specifically, officials should: Designate the appropriate offices responsible for ensuring that the obligation directly relates to the requirements in the reimbursable agreements.
(Ref A.5.b.2) We recommend that the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs: Develop, implement, and document adequate controls to ensure that the Bureau of International Narcotics and Law Enforcement Affairs uses DoD funds for specific purposes in accordance with laws and documents the appropriate use. Specifically, officials should: Retain documentation supporting that the obligation is in compliance with the reimbursable agreement requirements.
(Ref A.5.c.1) We recommend that the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs: Develop and document controls to return excess funds in a timely manner. Specifically, Develop policy that sets a reasonable deadline for contacting the contractor after the period of performance has ended to determine the costs the contractor estimates they have incurred.
(Ref A.5.c.2) We recommend that the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs: Develop and document controls to return excess funds in a timely manner. Specifically, determine another reasonable deadline to deobligate the funds based on estimates from the contractor and Bureau of International Narcotics and Law Enforcement Affairs officials.
(Ref A.5.d) We recommend that the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs: Develop controls for the officials responsible for ensuring DoD funds are obligated in accordance with the reimbursable agreements and review the Bureau of International Narcotics and Law Enforcement Affairs, Office of Resource Management, Budget Execution Division, documentation to ensure that the spreadsheets for tracking DoD funds do not include DOS-funded obligations.
(Ref A.5.e) We recommend that the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs: develop controls to ensure that the Bureau of International Narcotics and Law Enforcement Affairs, Office of Resource Management, Budget Execution Division, personnel monitor budget tracking spreadsheets to ensure that obligations do not exceed funds received and to prevent expended balances from exceeding obligated balances.
(Ref A.5.f) We recommend that the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs: require that all personnel involved in the obligating or disbursing of funds take an appropriations law training class.
(Ref A.6) We recommend that the Director, Bureau of Administration, Office of Logistics Management, Office of Acquisitions Management, require all contracting officers and supporting staff to take an appropriations law training class.
(Ref A.8.a) We recommend that the Assistant Secretary of State, Bureau of Resource Management and Chief Financial Officer, and the Director, Defense Security Cooperation Agency, perform a joint investigation of the potential Antideficiency Act violations for the $74.91 million of funds obligated outside the scope of the reimbursable agreements or not in compliance with Federal appropriations limitations. Specifically, they should investigate the following amounts and take the appropriate action for: $2.59 million reobligated outside the scope of the reimbursable agreement and period of funds availability.
(Ref A.8.b) We recommend that the Assistant Secretary of State, Bureau of Resource Management and Chief Financial Officer, and the Director, Defense Security Cooperation Agency, perform a joint investigation of the potential Antideficiency Act violations for the $74.91 million of funds obligated outside the scope of the reimbursable agreements or not in compliance with Federal appropriations limitations. Specifically, they should investigate the following amounts and take the appropriate action for: $49.85 million of obligations moved from original requirements to requirements outside the period of funds availability for task order S-AQMMA-08F-5375. In addition, review all other movements of DoD funds to ensure they were within the period of availability.
(Ref A.8.c) We recommend that the Assistant Secretary of State, Bureau of Resource Management and Chief Financial Officer, and the Director, Defense Security Cooperation Agency, perform a joint investigation of the potential Antideficiency Act violations for the $74.91 million of funds obligated outside the scope of the reimbursable agreements or not in compliance with Federal appropriations limitations. Specifically, they should investigate the following amounts and take the appropriate action for: $9.50 million obligated for the United Nations Law and Order Trust Fund–Afghanistan commitment.
(Ref A.8.d) We recommend that the Assistant Secretary of State, Bureau of Resource Management and Chief Financial Officer, and the Director, Defense Security Cooperation Agency, perform a joint investigation of the potential Antideficiency Act violations for the $74.91 million of funds obligated outside the scope of the reimbursable agreements or not in compliance with Federal appropriations limitations. Specifically, they should investigate the following amounts and take the appropriate action for: $1.15 million obligated for the Department of Justice Federal Prosecutors Program.
(Ref A.8.e) We recommend that the Assistant Secretary of State, Bureau of Resource Management and Chief Financial Officer, and the Director, Defense Security Cooperation Agency, perform a joint investigation of the potential Antideficiency Act violations for the $74.91 million of funds obligated outside the scope of the reimbursable agreements or not in compliance with Federal appropriations limitations. Specifically, they should investigate the following amounts and take the appropriate action for: $14,996 obligated for Department of State personnel to travel to the U.S. Embassy in South Korea.
(Ref A.8.f) We recommend that the Assistant Secretary of State, Bureau of Resource Management and Chief Financial Officer, and the Director, Defense Security Cooperation Agency, perform a joint investigation of the potential Antideficiency Act violations for the $74.91 million of funds obligated outside the scope of the reimbursable agreements or not in compliance with Federal appropriations limitations. Specifically, they should investigate the following amounts and take the appropriate action for: $11.81 million for an equitable adjustment for task order S-AQMPD-04F-0460.
(Ref A.9) We recommend that the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs; Under Secretary of Defense for Policy; and Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD, reach an agreement as to whether the $9.50 million obligation for a United Nations Law and Order Trust Fund-Afghanistan contribution was appropriately obligated. If officials do not reach an agreement, the Bureau of International Narcotics and Law Enforcement Affairs should return the $9.50 million of DoD funds obligated for a United Nations Law and Order Trust Fund-Afghanistan contribution.
(Ref B.1.a) We recommend that the Contracting Officer, Bureau of Administration, Office of Logistics Management, Office of Acquisitions Management, in coordination with the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs, increase the scope of the pre-payment invoice review for task order 5375 invoices to identify unauthorized costs. Specifically, the Contracting Officer should develop procedures to validate that: Travel costs are within the scope of the contract.
(Ref B.1.b) We recommend that the Contracting Officer, Bureau of Administration, Office of Logistics Management, Office of Acquisitions Management, in coordination with the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs, increase the scope of the pre-payment invoice review for task order 5375 invoices to identify unauthorized costs. Specifically, the Contracting Officer should develop procedures to validate that: Supporting timesheets are signed by the employee and authorized by a supervisor.
(Ref B.1.c) We recommend that the Contracting Officer, Bureau of Administration, Office of Logistics Management, Office of Acquisitions Management, in coordination with the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs, increase the scope of the pre-payment invoice review for task order 5375 invoices to identify unauthorized costs. Specifically, the Contracting Officer should develop procedures to validate that: Labor costs do not exceed the 6-day-per-week contract requirement.
(Ref B.1.d) We recommend that the Contracting Officer, Bureau of Administration, Office of Logistics Management, Office of Acquisitions Management, in coordination with the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs, increase the scope of the pre-payment invoice review for task order 5375 invoices to identify unauthorized costs. Specifically, the Contracting Officer should develop procedures to validate that: Labor costs are prorated when contractor personnel work less than the contractual daily hours.
(Ref B.1.e) We recommend that the Contracting Officer, Bureau of Administration, Office of Logistics Management, Office of Acquisitions Management, in coordination with the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs, increase the scope of the pre-payment invoice review for task order 5375 invoices to identify unauthorized costs. Specifically, the Contracting Officer should develop procedures to validate that: Supporting documentation for contractor-purchased materials and supplies include a Government-approved purchase request and proof of Government acceptance.
(Ref B.2.a) We recommend that the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs, determine who will conduct a 100-percent post-payment review of invoices for task orders 4305 and 5375 and recover costs from the contractor if necessary. Once it is determined who will conduct the review, the review should: Identify the total travel costs not authorized for the DynCorp personnel traveling from Texas to Washington, D.C., for weekly meetings with the Bureau of International Narcotics and Law Enforcement Affairs officials and request that the Bureau of Administration, Office of Logistics Management, Office of Acquisitions Management, recover funds from DynCorp for that amount.
(Ref B.2.b) We recommend that the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs, determine who will conduct a 100-percent post-payment review of invoices for task orders 4305 and 5375 and recover costs from the contractor if necessary. Once it is determined who will conduct the review, the review should: Determine whether timesheets were properly signed and approved by DynCorp officials and request that the Bureau of Administration, Office of Logistics Management, Office of Acquisitions Management, recover funds from DynCorp for that amount.
(Ref B.2.c) We recommend that the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs, determine who will conduct a 100-percent post-payment review of invoices for task orders 4305 and 5375 and recover costs from the contractor if necessary. Once it is determined who will conduct the review, the review should: identify the excess daily and hourly labor costs paid based on a 6-day work week and 8- to 12-hour day and request that the Bureau of Administration, Office of Logistics Management, Office of Acquisitions Management, take appropriate action to ensure the contract terms are complied with, which could include recovering funds.
(Ref B.2.d) We recommend that the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs, determine who will conduct a 100-percent post-payment review of invoices for task orders 4305 and 5375 and recover costs from the contractor if necessary. Once it is determined who will conduct the review, the review should: Request supporting documentation for contractor material purchases that did not have a signed purchase request or Government acceptance. For the items for which DynCorp cannot provide support, request that the Bureau of Administration, Office of Logistics Management, Office of Acquisitions Management, recover funds from DynCorp for that amount.
(Ref B.3.a) We recommend that the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs, in coordination with the Director, Bureau of Administration, Office of Logistics Management, Office of Acquisitions Management: request in writing and fund a review by the Defense Contract Audit Agency to determine whether costs associated with task order S-AQMMA-10-F-2708 were allowable, allocable, and reasonable.
(Ref B.3.b) We recommend that the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs, in coordination with the Director, Bureau of Administration, Office of Logistics Management, Office of Acquisitions Management: request in writing and fund a review by the Defense Contract Audit Agency of all DynCorp invoices submitted under task orders S-AQMMA-08-F-5375 and S-AQMMA-10-F-2708 from December 30, 2010, through July 15, 2011, to ensure DynCorp is not double-billing DOS and DoD for the same charges. This recommendation should be implemented in coordination with recommendation B.5.
(Ref B.4.a) We recommend that the Contracting Officer, Bureau of Administration, Office of Logistics Management, Office of Acquisitions Management, in coordination with the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs, recover from DynCorp: $334,400 for unauthorized travel costs.
(Ref B.4.b.) We recommend that the Contracting Officer, Bureau of Administration, Office of Logistics Management, Office of Acquisitions Management, in coordination with the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs, recover from DynCorp: $352,297 for labor costs not included in the statement of work, if the contracting officer determines that an equitable adjustment is needed.
(Ref B.4.c) We recommend that the Contracting Officer, Bureau of Administration, Office of Logistics Management, Office of Acquisitions Management, in coordination with the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs, recover from DynCorp: $449,406 for labor costs for services not performed by the contractor if the contracting officer determines that an equitable adjustment is needed.
(Ref B.4.d.) We recommend that the Contracting Officer, Bureau of Administration, Office of Logistics Management, Office of Acquisitions Management, in coordination with the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs, recover from DynCorp: $938,454 for unauthorized purchases if officials from the Bureau of International Narcotics and Law Enforcement Affairs cannot provide the Department of State Office of Inspector General with documentation that a Government official approved and accepted the purchase by July 29, 2011. This amount included purchases for $542,079 with no Government purchase approval; $332,631 with no Government purchase approval and Government acceptance, and $63,744 with no Government acceptance.
(Ref B.4.e) We recommend that the Contracting Officer, Bureau of Administration, Office of Logistics Management, Office of Acquisitions Management, in coordination with the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs, recover from DynCorp: overpayments based on Defense Contract Audit Agency audits of task orders 4305, 5375, and 2708.
(Ref B.4.f) We recommend that the Contracting Officer, Bureau of Administration, Office of Logistics Management, Office of Acquisitions Management, in coordination with the Executive Director, Bureau of International Narcotics and Law Enforcement Affairs, recover from DynCorp: once Recommendations B.2.a-d are implemented, the additional costs identified during the 100-percent detailed invoice review as costs either not authorized or not for services performed.
Recommendation B.1 (page 49 of joint State/Defense report) is reissued and redirected. Although closed by DOS OIG on October 25, 2010, additional actions are required, and we are reissuing the recommendation. The Assistant Secretary of State, Bureau of International Narcotics and Law Enforcement Affairs, should ensure that the contracting officer's representative for task orders 4305 and 5375, in coordination with the contractor, resolve the approximately $9 million of unverified inventory in accordance with FAR 45.105, "Records of Government property, " by granting the contractor relief of responsibility for lost, damaged, destroyed, or stolen Government property or forwarding a recommendation requesting the contracting officer to hold the contractor liable.
Recommendation B.2.a (page 50 of joint State/Defense report) remains open and additional actions are required. The Assistant Secretary of State, Bureau of International Narcotics and Law Enforcement Affairs, should finalize and fully implement the standard operating procedures for validating invoices, maintaining COR files, and receiving and inspecting inventory.
Recommendation B.2.b. (page 51 of the joint State/Defense report) is reissued. Although closed by DOS OIG on October 25, 2010, additional actions are required, and we are reissuing the recommendation. The Assistant Secretary of State, Bureau of International Narcotics and Law Enforcement Affairs, in coordination with the contracting officer for the CIVPOL contract, should fully populate the filesharing system with relevant contracting files for all ongoing CIVPOL task orders.
Recommendation C.2.b. (page 50 of the joint State/Defense report) is reissued. Although closed by DOS OIG on October 25, 2010, additional actions are required, and we are reissuing the recommendation. The Assistant Secretary of State, Bureau of International Narcotics and Law Enforcement Affairs, in coordination with the contracting officer, Bureau of Administration, Office of Logistics Management, Office of Acquisition Management, for the CIVPOL contract, should review the approximately $9.4 million in questioned costs identified by DCAA and take action to recover those costs.