Audit of the Military Departments’ Purchases of Aviation Fuel and Non-Fuel Services Using the Aviation Into-Plane Reimbursement (AIR) Card

Submitting OIG:

Department of Defense OIG

Date Issued:

Friday, June 25, 2021

Agency Reviewed / Investigated:

Department of Defense

Submitting OIG-Specific Report Number:

DODIG-2021-096

Location(s):

Agency-Wide

Type of Report:

Audit

Questioned Costs:

$250,557,415

Funds for Better Use:

View Document:

Attachment	Size
DODIG-2021-096.pdf	3.34 MB

Recommendation Number	Recommendation Status	Significant Recommendation
D-2021-0096-D000AX-0001-0001.e	Open	No
Rec. 1.e: The DoD OIG recommended that the Defense Logistics Agency-Energy Commander revise Defense Logistics Agency-Energy P-8, "Fuel Card Program," to require that the Aviation Into-Plane Reimbursement Card Accountable Official's commander sign a memorandum for the record documenting why the merchant's billing exceeded the fuel capacity on the Fuel Capacity Report and document the actions program officials took to correct the problem.
D-2021-0096-D000AX-0001-0001.h	Open	No
Rec. 1.h: The DoD OIG recommended that the Defense Logistics Agency-Energy Commander revise Defense Logistics Agency-Energy P-8, "Fuel Card Program," to require reviews of all invoice information to ensure the invoice matches a valid aircraft in that account, or to reconcile whether the transaction was valid and include reconciliation documentation and certification in the Aviation Into-Plane Reimbursement Card System before payment.
D-2021-0096-D000AX-0001-0001.i	Open	No
Rec. 1.i: The DoD OIG recommended that the Defense Logistics Agency-Energy Commander revise Defense Logistics Agency-Energy P-8, "Fuel Card Program," to require guidance on how Aviation Into-Plane Reimbursement Card users and reviewing officials should determine price reasonableness for ancillary services and fees.
D-2021-0096-D000AX-0001-0002.b	Open	No
Rec. 2.b: The DoD OIG recommended that the Defense Logistics Agency-Energy Commander revise the Aviation Into-Plane Reimbursement Card portion of the contract with Kropp Holdings Inc. to enforce the requirement for Kropp Holdings Inc. to provide line item detail on invoices.
D-2021-0096-D000AX-0001-0002.c	Open	No
Rec. 2.c: The DoD OIG recommended that the Defense Logistics Agency-Energy Commander revise the Aviation Into-Plane Reimbursement Card portion of the contract with Kropp Holdings Inc. to require Kropp Holdings Inc. to allow disputes based on price reasonableness.
D-2021-0096-D000AX-0001-0002.d	Open	No
Rec. 2.d: The DoD OIG recommended that the Defense Logistics Agency-Energy Commander revise the Aviation Into-Plane Reimbursement Card portion of the contract with Kropp Holdings Inc. to establish a control to identify transactions that are at high risk for being unreasonable to ensure Aviation Into-Plane Reimbursement Card officials dispute charges within the required timeframe.
D-2021-0096-D000AX-0001-0002.e	Open	No
Rec. 2.e: The DoD OIG recommended that the Defense Logistics Agency-Energy Commander revise the Aviation Into-Plane Reimbursement Card portion of the contract with Kropp Holdings Inc. to require transparency for all Aviation Into-Plane Reimbursement Card transactions, including the charges and pricing information associated with vendor admin fees.
D-2021-0096-D000AX-0001-0003.a	Open	No
Rec. 3.a: The DoD OIG recommended that the Defense Logistics Agency-Energy Commander require that the Defense Logistics Agency Program Management Office and the Defense Logistics Agency Tax Branch, in coordination with the Military Services, develop a standardized Aviation Into-Plane Reimbursement Card receipt with dedicated sections for required information, including a list of approved ancillary services and fees, a corresponding column for merchant cost information, and a signature line for the card user and approving official.
D-2021-0096-D000AX-0001-0003.b	Open	No
Rec. 3.b: The DoD OIG recommended that the Defense Logistics Agency-Energy Commander require that the Defense Logistics Agency Program Management Office and the Defense Logistics Agency Tax Branch perform a comprehensive review of all taxes applied to Aviation Into-Plane Reimbursement Card transactions, compile a list of the erroneous taxes identified with the corresponding cause, develop a plan to prevent future erroneous taxes and fees, and recoup the erroneous charges.
D-2021-0096-D000AX-0001-0005.e	Open	No
Rec. 5.e: The DoD OIG recommended that the Division Chief, Supply, Headquarters Department of the Army, Office of the Deputy Chief of Staff, direct the Component Program Manager to review, at least monthly, the report created to identify transactions at high risk of being unreasonable and ensure Aviation Into-Plane Reimbursement Card officials dispute charges within the required timeframe.

Recommendation Number

Recommendation Status

Significant Recommendation

Additional Details

D-2021-0096-D000AX-0001-0001.e

Open

Rec. 1.e: The DoD OIG recommended that the Defense Logistics Agency-Energy Commander revise Defense Logistics Agency-Energy P-8, "Fuel Card Program," to require that the Aviation Into-Plane Reimbursement Card Accountable Official's commander sign a memorandum for the record documenting why the merchant's billing exceeded the fuel capacity on the Fuel Capacity Report and document the actions program officials took to correct the problem.

D-2021-0096-D000AX-0001-0001.h

Open

Rec. 1.h: The DoD OIG recommended that the Defense Logistics Agency-Energy Commander revise Defense Logistics Agency-Energy P-8, "Fuel Card Program," to require reviews of all invoice information to ensure the invoice matches a valid aircraft in that account, or to reconcile whether the transaction was valid and include reconciliation documentation and certification in the Aviation Into-Plane Reimbursement Card System before payment.

D-2021-0096-D000AX-0001-0001.i

Open