Accounting and Financial Reporting for the Military Housing Privatization Initiative

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Date Issued

Tuesday, February 12, 2019

Submitting OIG

Department of Defense OIG

Other Participating OIGs

Department of Defense OIG

Agencies Reviewed/Investigated

Department of Defense

Components

United States Navy (USN)

United States Army (USA)

United States Air Force (USAF)

Under Secretary of Defense for Acquisition and Sustainment

Under Secretary of Defense Comptroller/Chief Financial Officer

Defense Finance and Accounting Service (DFAS)

Report Number

DODIG-2019-056

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

Funds for Better Use

$1,800,000

Open Recommendations

This report has 5 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
D-2019-0056-D000FL-0002-0001.B1a	No	$0	$0
Rec. B.1.a: The DoD OIG recommended that the Assistant Secretary of Defense for Sustainment issue policy requiring the maximum loan amount on promissory notes to match the corresponding loan agreements and promissory notes to contain complete histories of all amendments to the notes.
D-2019-0056-D000FL-0002-0001.B1b	No	$0	$0
Rec. B.1.b: The DoD OIG recommended that the Assistant Secretary of Defense for Sustainment coordinate with the DoD Deputy Comptroller for Program/Budget and Military Department personnel to issue policies requiring the identification of deobligation opportunities, such as when the maximum loan amount is reduced or no longer available, and develop procedures for working with DoD Deputy Comptroller for Program/Budget personnel to deobligate funds when the opportunities arise.
D-2019-0056-D000FL-0002-0001.B1c1	No	$0	$0
Rec. B.1.c.1: The DoD OIG recommended that the Assistant Secretary of Defense for Sustainment issue a policy requiring Military Department personnel to calculate changes in subsidy cost for all Government Direct Loans and Government Loan Guarantees before agreeing to any loan term changes.
D-2019-0056-D000FL-0002-0001.B1c2	No	$0	$0
Rec. B.1.c.2: The DoD OIG recommended that the Assistant Secretary of Defense for Sustainment issue a policy requiring Military Department personnel to submit the calculations to the Assistant Secretary of Defense for Sustainment for review and to the Office of Management and Budget for approval before agreeing to any loan term changes.
D-2019-0056-D000FL-0002-0001.B1c3	No	$0	$0
Rec. B.1.c.3: The DoD OIG recommended that the Assistant Secretary of Defense for Sustainment issue a policy requiring Military Department personnel to ensure that the approved amount of funding is in the DoD Family Housing Improvement Fund before agreeing to any loan term changes.