By: Mr. Patrick J. Fitzgerald The Auditor General

1. Auditing in a Wartime Environment Presentation to: American Society of Military Comptrollers By: Mr. Patrick J. Fitzgerald The Auditor General 28 May 2009

2. Talking Points • Agency Overview • Southwest Asia Operations • Managing Future Operations in SWA • Agency Accomplishments in SWA

3. AGENCY OVERVIEW

4. What do we do for the U.S. Army? Our mission is to assist: • Soldiers in achieving their mission more effectively and efficiently • In improving Army operations • Army leaders to be good stewards of taxpayer resources • Army leaders in finding solutions We view our mission to not only identify problems, but to be instrumental in resolving them. We accomplish this mission by providing America’s Army objective and independent audit services.

5. Agency Support of CONOPS • Provided valued service to the Army during contingency operations. • Support dates back to Vietnam War era. • Operation Desert Storm. • Bosnia and Kosovo. • Jun 2002, began extensive work in SWA. • Vested and Seized Assets. • Iraq Relief and Reconstruction. • LOGCAP - Uzbekistan, Afghanistan, Kuwait, and Turkey.

6. Agency Support of CONOPS • Dec 2004, GEN Casey, Commander, Multi-National Force - Iraq request for audit support in Iraq. • Maintained permanent presence on the ground in SWA since May 2005 (10-30 auditors continually deployed in Theater.) • Deployed 122 auditors since June 2002. • 20 percent of Agency audit staff. • All volunteer deployment team.

7. Expeditionary Support Audit Team Changes in team dynamics and modes of operation began in 2008 and are continuing to evolve. • Maintaining flexible capacity of 38 “Core” team members with 2 year commitments to OCONUS or CONUS contingencies. • Offering 180 day “Augmentee” opportunities to compliment Core team. • Practicing 60 to 90 day deployments. • Setting smaller achievable objectives. • Reporting results quicker. • Operating primarily in Afghanistan, Iraq and Kuwait currently.

8. SOUTHWEST ASIA OPERATIONS

9. Scope of Audit Work • 71 Audit Reports covering a wide range of issues in support of contingency operations. • LOGCAP OEF/OIF - 31 • Vested and Seized Assets - 3 • Active/Reserve Component Military Pay - 3 • Iraq Relief and Reconstruction - 2 • Commanders Emergency Response Program/Quick Reaction Fund - 3 • Various Logistics Issues - 24 • Miscellaneous Attestations - 5

10. Audit and Investigative Activities • USAAA is one of several audit and investigative agencies in Southwest Asia. • Government Accountability Office • Special IG for Iraq Reconstruction • DOD Inspector General • DA Inspector General • Air Force Audit Agency • Defense Contract Audit Agency • Federal Bureau of Investigation • Department of State • Defense Criminal Investigative Service • Criminal Investigation Command • Department of Justice

11. Audit Coordination • Several mechanisms in place to ensure adequate audit coverage and prevent duplication of effort. • Southwest Asia Joint Planning Group • Iraq Inspector General Council • Multi-National Forces – Iraq Inspector General • Multi-National Corps – Iraq Inspector General • CENTCOM Inspector General • U.S Army Central Inspector General

12. Current Objective in SWA • Audit objectives designed to assess internal controls, identify fraud indicators, and improve the efficiency and effectiveness of operations. • Working with investigative agencies to combat fraud, waste and misuse.

13. Current Requested Audit Work • Investigative Support. • Financial Management. • Contingency Contracting. • Base Operations Support. • LOGCAP Operations. • Retrograde Operations.

14. Investigative Support • Assistance to U.S. Army Criminal Investigation Command • Housing Invoices - Kuwait • Postal Services - Kuwait • CERP Funds - Iraq • Financial Management – Iraq

15. Commander’s Emergency Response Program • The “now federally appropriated” fund is designed to enable local commanders in Iraq and Afghanistan to respond to urgent humanitarian relief and reconstruction requirements within their areas of responsibility by carrying out programs that will immediately assist the indigenous population. • Urgent is defined as any chronic or acute inadequacy of an essential good or service which, in the judgment of a local commander, calls for immediate action. In addition, the CERP is intended to be used for small-scale projects that, optimally, can be sustained by the local population or government. • Keys to Project Selection • Execute Quickly • Employ many Iraqis • Benefit the Iraqi People • Be Highly Visible!

16. Origins of CERP • Initial resources came from millions of dollars of ill-gotten Ba’athist Part cash discovered by U.S. Forces. • May 7, 2003 FRAGO “Brigade Commanders Discretionary Recovery Program to Directly Benefit Iraq People. • June 2003 FRAGO 89 issued by CJTF-7 implemented CERP and outlined permissible reconstruction projects.

17. CERP Funding • 2004 CERP became a federally appropriated program in Iraq and Afghanistan with $180M appropriated. • U.S. funding of CERP totaled $4.64B as of FY 2008 17

18. Water and Sanitation Projects Food Production and Distribution Agriculture and Irrigation Projects Electricity Healthcare Education Telecommunications Transportation Civic Cleanup Activities and Civic Support Vehicles Repair of Civic and Cultural Facilities Sons of Iraq (SoI) Program, formerly known as Concerned Local Citizens (CLC) Project Examples and Spending Sewer, Water, Power Projects Achieve Great Effect for $$$!

19. Project Examples 19

20. What We Did • Audited consisted of determining: • If project files were complete. • If projects met CERP criteria. • If projects existed and were being monitored. 20

21. How We Did It 21

22. What We Found • Improvements needed in personnel, training, spans of control. • Appoint and train personnel prior to deployment. • Monitor spans of control to provide reasonable oversight. • Assign contract specialists to BCTs to assist CERP Managers. 22

23. Managing Future Operations in SWA

24. Iraq Draw Down Afghanistan Build-up • Afghanistan • Troop Build-up • Base and Infrastructure Construction • Contingency Contracting • Battle Focus Iraq • Troop Reductions • Base Closures • Equipment Donations and Transfers • Security Management

25. What We Have Planned • Forward Operating Base Closures, Iraq • Retrograde Exit Strategy • LOGCAP Operations IV • Return of Assets from SWA • CERP – Afghanistan • Contracting - Afghanistan Key is to remain flexible and responsive to the needs of the Army.

26. Accomplishments

27. Built Excellent Reputation • Recognized for creditable results. • Testified before Senate Armed Services Committee • Briefed senior Congressional staff members • Accompanied Senior DA Officials and Congressional Delegation to Iraq/Kuwait

28. Overcame Challenges • Limited Office Space • Communications • Transportation • Long Hours • Staff Turn-Over

29. Managed SWA Transportation Modes

30. Secured Office Space

31. Offered Unique Auditing Opportunities • Immediate job satisfaction • Visibility • Better customer support • Enhanced auditing experience • Friendships

32. Delivered Timely Solutions • USACE Gulf Region Division immediately implemented recommended actions to correct deficiencies in contract operations in Iraq. • Multi-National Force – Iraq immediately began disposition arrangements for sensitive items we discovered at Abu Ghraib Warehouse. • A military financial management company in Iraq began implementing recommended internal controls at the time of our review. • Area Support Group – Kuwait scrubbed maintenance records during our audit to correct errors we identified.

33. Contact Information Mr. Pat Fitzgerald The Auditor General Pat.Fitzgerald@us.army.mil (703) 681-9809 Mr. Bill Jenkins Program Director, Expeditionary Support Audits Bill.Jenkins1@us.army.mil (910) 396-5698, ext. 216 Mr. John Collins Audit Manager Expeditionary Support Audits John.E.Collins@us.army.mil (256) 955-6256 Ms. Theresa Wilson Audit Manager Expeditionary Support Audits Theresa.Wilson1@us.army.mil (703) 681-4286

34. Closing Comments Questions?