Audit of the DoD’s Financial Management of the Afghanistan Security Forces Fund

Rec. 1.c.1: The DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD, coordinate with the Director of the Defense Security Cooperation Agency to return all Building Partner Capacity funds in the Foreign Military Sales Trust Fund to the accounts from which the funds originated.

Rec. 1.c.3: The DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD, coordinate with the Director of the Defense Security Cooperation Agency to develop and implement policies and procedures requiring that DoD Component purchases for Building Partner Capacity programs be paid for, whether through reimbursement or other means, directly from the accounts to which Congress appropriated the funds.

Rec. 1.e.1: The DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD, assess the DoD Agency?Wide financial statements for prior period adjustment and determine materiality for each of the non?Army reporting entities that receive appropriations for Building Partner Capacity programs.

Rec. 1.e.3: The DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD, assess the DoD Agency?Wide financial statements for prior period adjustment and adjust the financial reports for non-Army reporting entities consistent with U.S. Treasury guidance.

Rec. 1.g: The DoD OIG recommended that the Under Secretary of Defense (Comptroller)/Chief Financial Officer, DoD, coordinate with the Service Secretaries and appropriate DoD Component directors to develop and ensure the implementation of a policy sufficient to ensure that the DoD fully and accurately account for the funds consistent with the intent of Congress for the: 1. Agency Indicators attribute. 2. Periods of Availability attribute. 3. Main Accounts attribute.

Rec. 2.a: The DoD OIG recommended that the Director of the Defense Security Cooperation Agency perform a comprehensive review of Defense Security Cooperation Agency policies related to Building Partner Capacity programs to identify and remove any mention of the: 1. Foreign Military Sales Trust Fund as an appropriate Treasury account for Building Partner Capacity funds and update the DoD's processes accordingly. 2. Economy Act as the authority for transferring Building Partner Capacity funds to the Foreign Military Sales Trust Fund and update the DoD's processes accordingly.

Rec. 2.b.2: The DoD OIG recommended that the Director of the Defense Security Cooperation Agency coordinate with the DoD Components to immediately identify and reconcile obligations for all Afghanistan Security Forces Fund appropriated funds remaining on cases, remove any expired funds on cases that are not obligated, and provide the reconciliations to the Special Inspector General for Afghanistan Reconstruction.

Rec. 2.d: The DoD OIG recommended that the Director of the Defense Security Cooperation Agency return all expired appropriations not on cases in the Foreign Military Sales Trust Fund to the account from which they were transferred.

Rec. 2.f: The DoD OIG recommended that the Director of the Defense Security Cooperation Agency coordinate with any DoD Components that violated appropriations law in Recommendation 2.e, to determine whether a potential Antideficiency Act violation occurred that cannot be corrected and, if so, initiate a review in accordance with DoD Regulation 7000.14?R, "DoD Financial Management Regulation," volume 14, chapter 3, to determine whether it is reportable.

Rec. 2.g.2: The DoD OIG recommended that the Director of the Defense Security Cooperation Agency assess the Security Assistance Accounts financial statements for prior period adjustment and perform an analysis on the status of Building Partner Capacity appropriated funds in the Foreign Military Sales Trust Fund to quantify the misstatement to the Security Assistance Accounts financial statements.

Rec. 3.a: The DoD OIG recommended that the Assistant Secretary of the Army (Financial Management and Comptroller) assess the Army General Fund financial statements for prior period adjustment and determine materiality for the Army General Fund financial statements.

Rec. 3.c: The DoD OIG recommended that the Assistant Secretary of the Army (Financial Management and Comptroller) assess the Army General Fund financial statements for prior period adjustment and adjust the financial reports for the Army General Fund consistent with U.S. Treasury and Office of Management and Budget guidance.