Audit of the Defense Security Cooperation Agency—Security Assistance Accounts

Rec. A.1.e: The DoD OIG recommended that the Defense Security Cooperation Agency Director establish definitions for all Special Defense Acquisition Fund collection sources and issue detailed accounting and reporting guidance to the implementing organizations for the transactions.

Rec. A.1.f.4: The DoD OIG recommended that the Defense Security Cooperation Agency Director work with the Defense Finance and Accounting Service-Indianapolis Director to correct the Defense Departmental Reporting System to accept, consolidate, reconcile, and report Special Defense Acquisition Fund accounting records.

Rec. A.1.f.6: The DoD OIG recommended that the Defense Security Cooperation Agency Director work with the Defense Finance and Accounting Service-Indianapolis Director to analyze all open and closed Foreign Military Sales cases to determine whether the cases were properly coded in accordance with the Security Assistance Management Manual.

Rec. A.1.f.9: The DoD OIG recommended that the Defense Security Cooperation Agency Director work with the Defense Finance and Accounting Service-Indianapolis Director to develop and implement internal controls to prevent the implementing organizations from improperly coding Foreign Military Sales cases.

Rec. A.1.f.11: The DoD OIG recommended that the Defense Security Cooperation Agency Director work with the Defense Finance and Accounting Service-Indianapolis Director to develop and implement standard operating procedures, process narratives, and process maps to instruct Defense Finance and Accounting Service personnel on how to record the Accrued Unfunded Annual Leave balance correctly.

Rec. B.1.a: The DoD OIG recommended that the Defense Security Cooperation Agency Director review and provide written approval for each reconciliation performed by the Defense Finance and Accounting Service-Indianapolis of the Security Assistance Accounts.

Rec. B.1.c: The DoD OIG recommended that the Defense Security Cooperation Agency Director develop and implement detailed standard operating procedures, process narratives, and process maps for each of the Security Assistance Accounts. The documentation should include the entire life cycle of each transaction within the Security Assistance Accounts, roles and responsibilities, internal controls, and a listing and description of interfaces with other accounting cycles and systems. Defense Security Cooperation Agency management should review the documentation annually.

Rec. B.1.d.2: The DoD OIG recommended that the Defense Security Cooperation Agency Director work with the Defense Finance and Accounting Service-Indianapolis Director to research and resolve each of the adjustments on the FY 2017 Security Assistance Account Central Accounting and Reporting Systems statements.

Rec. B.1.d.4: The DoD OIG recommended that the Defense Security Cooperation Agency Director work with the Defense Finance and Accounting Service-Indianapolis Director to make the necessary corrections to the Defense Department Reporting System to collect and reconcile data so that the DoD can report all Security Assistance Account balances in the DoD Agency Financial Report.