Accountability Lacking – Not Enough Auditors says the Wartime Contracting Commission

On August 31, 2011, the Wartime Contracting Commission issued its final report. Reading it, you understand the importance of the need for auditors to help bring accountability to government programs.

Congress created the independent, bipartisan Commission on Wartime Contracting in Iraq and Afghanistan in 2008 (Public Law 110-181) to assess contingency contracting for reconstruction, logistics, and security functions; examine the extent of waste, fraud, and abuse; and provide recommendations to Congress to improve the structures, policies, and resources for managing the contracting process and contractors.

The Commission said at least $31 billion, and possibly as much as $60 billion, has been lost to contract waste and fraud in America’s contingency operations in Iraq and Afghanistan.

A variety of weaknesses frustrate the U.S. government’s ability to protect its interest in economical and effective performance of contingency contracting. 

Among the weaknesses were insufficient staff and resources—notably at the Defense Contract Management Agency and the Defense Contract Audit Agency—for financial management, acquisition planning, business-system reviews, source selection, incurred-cost audits, performance management, property management, contract payment, and contract close-outs.

These weaknesses included:

• Limited authority to withhold contract payments even when contractor business systems for functions such as estimates, labor billing, and purchases impede the work of government management and oversight officials;
• Limited power to access contractor records that can be useful or essential for examining matters such as supervision of subcontractors; and
• Shortfalls in strategic planning and dedicated budgets to support related human resources and information-systems requirements.

This is clearly an example of where auditors are needed as the contracting projects are underway.  It’s much better to identify the fraud, waste and abuse as it is occurring - so immediate action can be taken, instead of waiting years later and pointing it out.

Too many short-sighted managers are not putting in place the necessary oversight systems to assure taxpayers money are being spent properly.

That's too bad - because it is hard earned taxpayer money that is being wasted or stolen!