Fiscal Year 2010 Audit Plan

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					     D E PA RT M E N T O F D E F E N S E
OFFICE OF THE INSPECTOR GENERAL




   FY 2010 AUDIT PLAN

OFFICE OF THE DEPUTY INSPECTOR GENERAL
              FOR AUDITING



            As of December 7, 2009
Additional Copies of the FY 2010 Audit Plan can be obtained by
contacting:

     Office of the Deputy Inspector General for Auditing
     Attn: Corporate Planning Branch
     Room 801
     400 Army Navy Drive
     Arlington, VA 22202-2884

     (703) 604-9142 (DSN 664-9142)



This plan and the Comprehensive Oversight Plan for Southwest
Asia are also available on our Web site at:

http://www.dodig.mil/audit
                                  FOREWORD

        The Office of the Deputy Inspector General for Auditing is focused on providing
independent and objective audit services to promote the continuous performance improvement,
management, and accountability of DoD operations, programs, and resources to support DoD in
its defense of U.S. national interests. The FY 2010 Audit Plan identifies our ongoing and
planned oversight coverage of DoD organizations, programs, activities, and functions as an
integral part of the DoD management system.

       In the process of our planning, we consider projects that address the DoD strategic goals,
the management challenges identified through our previous oversight efforts, and GAO High-
Risk areas (see Appendix A). We developed the audit topics with DoD managers and
coordinated the projects with the joint planning groups that address coverage in each major
functional area. For FY 2010, we are directing our resources to provide oversight of the
Department's Overseas Contingency Operations, acquisition management, contract
administration and oversight, financial stewardship, health care, information security and
privacy, logistics, and readiness and force protection. We will also dedicate resources to provide
oversight of DoD's implementation of the American Recovery and Reinvestment Act.

        The FY 2010 Audit Plan is a living document and will be updated periodically as we
regularly receive management requests, congressional requests, hotline allegations, and other
out-of-cycle requirements that require this plan to change. Additionally, we will update the plan
after we finalize our oversight efforts related to the relocation of the U.S. Marines from Okinawa
to Guam. Updates to this plan are available on our Web site at www.dodig.millaudit or by
contacting the Corporate Planning Branch at (703) 604-9142.
Table of Contents

   Acquisition .....................................................................................................1

   American Recovery and Reinvestment Act ................................................3

   Contract Oversight ........................................................................................4

   Financial Management................................................................................10
           Air Force............................................................................... 10
           Army ..................................................................................... 11
           Defense Agencies.................................................................. 12
           DoD........................................................................................ 14
           Marine Corps ....................................................................... 16
           Navy ...................................................................................... 16
           Other Financial .................................................................... 17
   Guam Realignment......................................................................................20

   Health Care ..................................................................................................21

   Information Technology..............................................................................22

   Logistics ........................................................................................................23

   Readiness and Forces Management...........................................................26

   Other .............................................................................................................28

   Appendix A...................................................................................................29
Office of the Deputy Inspector General for Auditing


                                     ACQUISITION


 ON-GOING PROJECTS
  Acquisition of Ballistic Glass Contracts for the High Mobility Multipurpose Wheeled
  Vehicle Variants (D2008-D000CE-0187.000) The objective is to determine whether the
  award and administration process of the High Mobility Multipurpose Wheeled Vehicle
  ballistic glass contracts comply with the Federal Acquisition Regulation.

  Army Acquisition Actions in Response to the Threat to Light Tactical Wheeled Vehicles
  (D2009-D000AE-0007.000) The objective is to determine whether the Army effectively
  managed efforts to develop, test, and acquire armor solutions for light tactical wheeled
  vehicles. These solutions are needed in response to the threat to High Mobility Multipurpose
  Wheeled Vehicle variants and use in developing the next-generation vehicle for the Global
  War on Terror. In addition, we will determine whether DoD exercised adequate operational
  test and live fire test oversight of the Army’s High Mobility Multipurpose Wheeled Vehicle
  program.

  Body Armor Acquisition Life Cycle Management (D2009-D000JA-0106.000) The
  objective is to determine whether DoD is effectively managing the operations and support
  phase of the acquisition process for body armor components.

  Implementation of Predator/Sky Warrior Acquisition Decision Memorandum dated
  May 19, 2008 (D2009-D000CD-0071.000) The objective is to determine the
  implementation status of the Acquisition Decision Memorandum. Specifically, we will
  evaluate whether implementation by the Air Force and the Army complies with the
  Acquisition Decision Memorandum, and whether alternatives were considered, such as the
  Reaper program.

  Marine Corps Fulfillment of Urgent Universal Need Statements for Laser Dazzlers
  (D2009-D000AE-0210.000) The Assistant Commandant of the Marine Corps requested this
  audit in response to allegations of mismanagement in fulfilling Urgent Universal Need
  Statements for laser dazzlers. The objective is to determine whether acquisition managers in
  the United States Marine Corps effectively responded to the urgent needs of deployed
  Marines in acquiring a nonlethal laser dazzler capability in accordance with Federal and
  Defense acquisition regulations.

  Rapid Acquisition and Fielding of Materiel Solutions Within the Navy (D2008-D000AE-
  0247.000) The objective is to evaluate the overall management of the Navy’s processes for
  rapidly acquiring and fielding materiel solutions to meet urgent needs in support of the
  Global War on Terror and to ensure safe operation of naval forces. Specifically, we will
  evaluate the effectiveness of Navy procedures for identifying and validating urgent capability
  needs, contracting for and acquiring materiel solutions to meet those needs, and complying
  with DoD requirements and acquisition policies once materiel solutions are fielded.




FY 2010 Audit Plan                                                                            1
Office of the Deputy Inspector General for Auditing
PLANNED PROJECTS
  Acquisition of Advanced Extremely High Frequency Satellite The objective is to
  determine whether the Air Force is effectively managing the effort to develop, test, and
  acquire the Advanced Extremely High Frequency Satellite. Specifically, we will evaluate the
  Air Force's management controls in implementing the requirements, systems engineering
  processes, contracting procedures, and obtaining proper funding for the development and
  procurement of the Advanced Extremely High Frequency Satellite.

  Acquisition of the Multi-Platform Radar Technology Insert Program The objective is to
  determine whether the Air Force is effectively managing the effort to develop, test, and
  acquire the Multi-Platform Radar Technology Insert program. Specifically, we will evaluate
  the Air Force's management controls in implementing the requirements, systems engineering
  processes, contracting procedures, testing, and obtaining proper funding for the development
  and procurement of the Multi-Platform Radar Technology Insert program.




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Office of the Deputy Inspector General for Auditing


          AMERICAN RECOVERY AND REINVESTMENT ACT


 ON-GOING PROJECTS
  Assessment of the Planning and Implementation for the American Recovery and
  Reinvestment Act of 2009 We are conducting assessments to determine whether the
  Department of Defense and its Components are planning and implementing Public Law 111-
  5, the American Recovery and Reinvestment Act of 2009, by meeting the requirements in the
  Recovery Act, the Office of Management and Budget Memorandum M-09-10, Initial
  Implementing Guidance for the American Recovery and Reinvestment Act of 2009, and
  subsequent related guidance.

     For additional and updated information on our oversight efforts related to the American
     Recovery and Reinvestment Act, please visit Department of Defense Inspector General
     Information Related to the American Recovery and Reinvestment Act of 2009.




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Office of the Deputy Inspector General for Auditing


                             CONTRACT OVERSIGHT


 ON-GOING PROJECTS
  Advisory and Assistance Service Contracts in Support of the Combat Search and
  Rescue Helicopter (D2009-D000AB-0073.000) The overall objective is to determine
  whether contracting for advisory and assistance services supporting the Air Force Combat
  Search and Rescue Helicopter are in accordance with the Federal Acquisition Regulation and
  Department of Defense Guidance. This audit is being conducted in response to concerns
  expressed by Senate and House Armed Services Committee Staff.

  Air Cargo Transportation Contracts in Support of Operation Iraqi Freedom and
  Operation Enduring Freedom (D2009-D000LC-0237.000) The objective is to Determine
  whether air cargo transportation contracts in support of Operation Iraqi Freedom and
  Operation Enduring Freedom are administered in accordance with applicable Federal and
  DoD regulations. Specifically, we will determine whether the decision to use air
  transportation was justified, whether delivery orders were awarded in accordance with
  vendor selection criteria, and whether the cargo transported by air was delivered within
  required time frames.

  Air Force Secondary Power Logistics Solutions Contract for Logistics Service and
  Depot Maintenance Support of Aircraft Auxiliary Power Units
  (D2009-D000CH-0223.000) The objective will be to evaluate the data used in the business
  case to support the best value decision to award the Secondary Power Logistics Solutions
  contract to Honeywell International Inc. Specifically, we will evaluate the accuracy of the
  baseline data related to availability, reliability, and cost; determine whether the Air Force
  adequately considered appropriate statutory and regulatory issues; and the overall impact to
  the Defense Logistics Agency and DoD supply system.

  Air Forces Central War Reserve Materiel Contract (D2009-D000AS-0264.000) The
  objective is to determine whether the Air Force officials awarded and are providing oversight
  of the Air Forces Central War Reserve Materiel contract (FA4890-08-C-0004) in accordance
  with Federal and DoD policies.

  Army and Navy Small Boats Maintenance Contracts (D2009-D000AS-0163.000) The
  objective is to determine whether contracts providing ship repair and maintenance to the U.S.
  Army operations in Bahrain and Navy operations in Bahrain, Qatar, and United Arab
  Emirates were properly managed and administered. Specifically, we will review
  competition, contract type, and contract oversight.

  Army’s Use of Award Fees on Contracts That Support the Global War on Terror
  (D2008-D000AE-0251.000) The objective is to determine whether Army award fees paid to
  contractors in support of the Global War on Terror are justified. Specifically, we will review
  the procedures for awarding the fees and proper allocation of award fees on the contracts.




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Office of the Deputy Inspector General for Auditing
  Class III Fuel Procurement and Distribution in Southwest Asia (D2008-D000JC-
  0186.000) The objective is to determine whether fuel used for ground operations in
  Southwest Asia to support Operations Iraqi Freedom and Enduring Freedom is procured and
  distributed efficiently and effectively. Specifically, we will determine whether fuel is
  procured at fair and reasonable prices, whether fuel is distributed economically and
  efficiently to operational commands, and whether fuel supply points maintain accurate
  inventories.

  Construction of New Kabul Compound Facilities for U.S. Forces-Afghanistan (D2009-
  D000JB-0241.000) The objective is to determine whether the U.S. Army Corps of
  Engineers, Afghanistan Engineering Division (USACE AED) and U.S. Forces-Afghanistan
  procured construction services and administered the contracts in accordance with Federal
  Acquisition Regulations and other applicable laws and regulations. Specifically, we will
  determine whether U.S. Forces-Afghanistan selected the location for New Kabul Compound
  facilities using appropriate site-planning criteria; whether USACE AED properly monitored
  contractor performance during construction of facilities at the New Kabul Compound; and
  whether USACE AED has taken or should take recourse against the original prime contractor
  because of latent defects, negligence, or fraud.

  Contract Administration of the Prime Vendor Program for Subsistence in Support of
  Operation Enduring Freedom (D2009-D000LD-0126.000) The objective is to evaluate the
  contract administration of the Prime Vendor Program for Subsistence in support of Operation
  Enduring Freedom. Specifically, we will review whether the assignment of Contracting
  Officer Representatives and execution of the quality assurance surveillance plans and
  procedures were effective for assessing contractor performance.

  Contracting for Dismounted Counter Radio-Controlled Improvised Explosive Device
  Electronic Warfare Systems (D2009-D000AS-0092.000) The objective is to determine
  whether the Navy implemented adequate controls over contractor billing and oversight for
  the Dismounted Counter Radio-Controlled Improvised Explosive Device Electronic Warfare
  Systems.

  Contracting for Organizational and Direct Support Maintenance at Joint Base Balad,
  Iraq (D2009-D000JB-0254.000) The objective is to determine whether DoD is efficiently
  and effectively contracting for organizational and direct support maintenance at Joint Base
  Balad, Iraq. Specifically, we will evaluate the contract requirements and statement of work,
  contractor workload and utilization data, and whether organic assets are available to perform
  the maintenance.

  Contracts for Spare Parts for Vehicle-mounted Small Arms in Support of the Global
  War on Terror (D2008-D000FD-0214.000) The objective is to determine whether DoD
  organizations used appropriate and effective contracting procedures to provide customers
  with the vehicle-mounted small arms spare parts needed to support the Global War on Terror.

  Contracts Supporting Base Operations in Kuwait (D2009-D000AS-0266.000) The
  objective is to determine whether DoD properly managed and administered contracts
  supporting base operations in Kuwait. Specifically, we will determine whether the contract
  management and administration complied with Federal and DoD policies.

  Contracts Supporting the Broad Area Maritime Surveillance Program (D2009-
  D000AS-0247.000) The objective is to determine whether DoD officials properly managed
  and administered the contracts supporting the Broad Area Maritime Surveillance Program.
  Specifically, we will determine whether the contract management and administration
  complied with Federal and DoD policies.

FY 2010 Audit Plan                                                                             5
Office of the Deputy Inspector General for Auditing
  Countermine and Improvised Explosive Device Defeat Systems Contracts (D2009-
  D000AE-0102.000) The objective is to determine whether DoD procurement efforts for
  countermine and improvised explosive device defeat systems for use in Iraq and Afghanistan
  were developed, awarded, and managed in accordance with Federal and Defense acquisition
  regulations.

  Defense Contract Management Agency Acquisition Workforce for Southwest Asia
  (D2008-D000AB-0266.000) The objective is to determine Defense Contract Management
  Agency requirements to support Southwest Asia contracting operations and the number of
  available Defense Contract Management Agency civilian, military, foreign national, and
  support contractors supporting such operations. We will also evaluate whether Defense
  Contract Management Agency Acquisition workforce for Southwest Asia is adequately
  trained and certified.

  DoD and DoD Contractor Efforts to Prevent Sexual Assault/Harassment Involving
  Contractor Employees Within Operations Enduring Freedom and Iraqi Freedom Areas
  of Operation (D2008-D000CE-0221.000) The DoD OIG is performing this audit as a result
  of a congressional inquiry. The objective is to review whether contracts that support
  Operations Enduring Freedom and Iraqi Freedom Areas of Operation contain clauses that
  adequately address DoD policies regarding sexual assault/harassment of and by contractor
  personnel. We will also determine whether either DoD or DoD contractors, or both,
  provided sexual assault/harassment awareness, prevention, and reporting training to DoD and
  contractor employees prior to their deployment to Operations Enduring Freedom and Iraqi
  Freedom Areas of Operation.

  DoD Body Armor Contracts (D2008-D000CD-0256.000) The DoD OIG is performing this
  project as a result of a Congressional request. The objective is to examine the contracts and
  contracting process for body armor and related test facilities. Specific objectives will include
  evaluating the background and qualifications of the contractors, the criteria for awarding the
  contracts, the quality assurance process, and any relationships that may exist between the
  contractors and Government officials. Our review of the quality assurance process will
  include reviewing the results of First Article Testing and Lot Acceptance Testing for the
  body armor contracts.

  DoD Use of Undefinitized Contractual Actions (D2009-D000CG-0248.000) This audit is
  being conducted in accordance with Public Law 99-591, “Continuing Appropriations for
  Fiscal Year 1987,” section 908(b), which requires the Inspector General of the Department of
  Defense to periodically conduct an audit of undefinitized contractual actions. Our objective
  is to determine DoD compliance with restrictions on undefinitized contractual actions
  imposed by section 2326, title 10, United States Code. We will also determine whether
  undefinitized contractual actions were appropriately justified and were definitized at fair and
  reasonable prices.

  Equipment Repair and Maintenance Contracts for Aircraft and Aircraft Components
  Supporting Coalition Forces in Iraq and Afghanistan (D2008-D000LH-0249.000) The
  objective is to determine whether equipment repair and maintenance contracts for aircraft and
  aircraft components supporting coalition forces in Iraq and Afghanistan are effective.

  Fiscal Year 2008 and Fiscal Year 2009 DoD Purchases Made Through the General
  Services Administration (D2009-D000CF-0259.000) This audit is a coordinated effort
  with the General Services Administration (GSA) Inspector General's Office. The audit will
  determine whether the GSA followed Public Law 110-181, "National Defense Authorization
  Act for Fiscal Year 2008." Section 801, “Internal Controls for Procurements on Behalf of the
  Department of Defense by Certain Non-Defense Agencies,” which requires the Inspectors

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Office of the Deputy Inspector General for Auditing
  General of DoD and GSA to reexamine the policies, procedures, and internal controls for
  DoD purchases made through GSA. The overall objective will be to determine whether DoD
  and GSA improved their interagency purchasing practices since our last audit, "FY 2005
  DoD Purchases Made Through the General Services Administration." Specifically, we will
  examine policies, procedures, and internal controls to determine whether DoD had a
  legitimate need to use GSA, whether DoD clearly defined requirements, and whether GSA
  and DoD properly used and tracked funds. We will also determine whether GSA complied
  with Federal and Defense procurement requirements.

  FY 2008 DoD Purchases Made Through the Department of Energy
  (D2009-D000CF-0069.000) This audit is a coordinated effort with the Department of
  Energy (DOE) Inspector General's Office. The audit is required by Section 804 of Public
  Law 110-417, the “National Defense Authorization Act for Fiscal Year 2009.” Specifically,
  Section 804 requires an audit of each covered non-Defense agency of the Federal
  Government that procured property or services in excess of $100 million on behalf of DoD
  during FY 2008. The overall objective will be to review DoD procedures for purchases
  through DOE. Specifically, we will examine the policies, procedures, and internal controls
  to determine whether there was a legitimate need for DoD to use DOE, whether DoD clearly
  defined requirements, whether DOE and DoD properly used and tracked funds, and whether
  defense procurement requirements were complied with.

  Internal Controls Over the Acquisition and Contract Administration Process at the
  Space and Naval Warfare Systems Command (D2009-D000CE-0117.000) Our
  objective is to determine whether Space and Naval Warfare has established internal controls
  within its acquisition and contract administration process and if those controls are effective.

  International Oil Trading Company Contracts to Supply Fuel to U.S. Troops in Iraq
  (D2009-D000CH-0244.000) The objective of the audit will include a review of internal
  controls related to the receipt, acceptance, invoicing, and payment processes and procedures
  for fuel and a review of the Defense Energy Support Center’s decision to award the
  International Oil Trading Company a series of contracts for the delivery of fuel through
  Jordan to U.S. troops in Iraq. We will conduct these reviews to determine whether prices
  paid were fair and reasonable, whether an exclusive supply arrangement had an effect on
  prices, and whether the fuel needs to be supplied through Jordan.

  Logistics Civil Augmentation Program IV Support Contract (D2010-D000AS-0031)
  The objective is to determine whether the Logistics Civil Augmentation Program IV support
  contract was managed and administered in accordance with Federal and DoD guidance.

  Maintenance and Support of the Mine Resistant Ambush Protected Vehicle (D2009-
  D000CK-0100.000) The objective is to determine whether Mine Resistant Ambush
  Protected vehicle program and contracting officials are adequately supporting Resistant
  Ambush Protected vehicle maintenance requirements and appropriately awarding and
  administering maintenance contracts.

  Maintenance of Electrical Wiring in Buildings at Kandahar Airfield, Afghanistan
  (D2010-D000JB-0078.000) The overall objective is to determine whether the contractor
  properly maintains electrical wiring in buildings at Kandahar Airfield in accordance with
  provisions of the Logistics Civil Augmentation Program contract.

  Material Purchases Made Through the Partnership Agreement with Sikorsky Aircraft
  Corporation at Corpus Christi Army Depot (D2010-D000CH-0077.001) The overall
  objective is to evaluate material purchases made at Corpus Christi Army Depot through
  partnership agreements with private-sector firms. Specifically, we will determine whether

FY 2010 Audit Plan                                                                                  7
Office of the Deputy Inspector General for Auditing
  the partnership agreements in place with original equipment manufacturers are effective in
  minimizing the cost of direct materials to the depot.

  Material Purchases Made Through the Partnership Agreement with the Boeing
  Company at Corpus Christi Army Depot (D2010-D000CH-0077.000) The overall
  objective is to evaluate material purchases made at Corpus Christi Army Depot through
  partnership agreements with private-sector firms. Specifically, we will determine whether
  the partnership agreements in place with original equipment manufacturers are effective in
  minimizing the cost of direct materials to the depot.

  Public Works Operations at U.S. Army Garrison-Yongsan (D2009-D000JB-0160.000)
  The objective is to determine whether controls were in place and working as intended for the
  U.S. Army Garrison-Yongsan Directorate of Public Works to provide goods and services to
  its customers in the most effective and efficient manner. Specifically, we will evaluate
  Directorate of Public Works operations and associated procurement support by the U.S.
  Army Contracting Command-Korea to determine whether contract requirements were valid
  and accurately stated, the most effective and efficient means were used, supplies and services
  purchased were received, and applicable procurement policies and regulations were followed.

  Purchases Made With Earmarked Funds (D2008-D000CF-0013.000) The objective will
  be to determine whether contracts awarded using funds earmarked within the DoD budget
  were awarded in accordance with the Federal Acquisition Regulation and other contracting
  requirements. Specifically, we will determine whether the Services and the Defense
  Agencies obtained competition and whether they awarded the contracts at fair and reasonable
  prices.

  Reimbursable Fees at Requested Major Range and Test Facility Bases
  (D2009-D000AB-0111.000) We are performing the audit at the request of the Office of the
  Under Secretary of Defense for Acquisition, Technology, and Logistics, Test Resource
  Management Center. Our objective is to determine whether the reimbursable fees for the
  DoD Major Range and Test Facility Bases are being charged appropriately and in accordance
  with statutory, DoD, and service requirements.

  Times and Material Contracts in Southwest Asia (D2009-D000CF-0095.000) The
  objective is to determine whether time and material contracts for Southwest Asia were
  awarded and administered in accordance with the Federal Acquisition Regulation.

PLANNED PROJECTS
  Afghanistan National Army Vehicle Maintenance and Training Contract The audit
  objective is to determine whether adequate quality assurance and quality control procedures
  exist for the Afghanistan National Army Vehicle and Maintenance Contract. Specifically, to
  determine whether additional warehouse space is required for PAE Government Services,
  Inc. to perform contractual tasks and whether PAE has submitted a fair and reasonable
  request for equitable adjustment for parts reimbursement.

  Appropriate Use of DoD Funds Pursuant to Congressional Earmarks This audit is
  required by Section 1062 Public Law 111-84, “National Defense authorization Act for Fiscal
  Year 2010.” Specifically, Section 1062, requires an audit of contracts, grants, and other
  agreements pursuant to congressional earmarks of DoD funds to determine whether or not
  the recipients of such earmarks comply with requirements of Federal Law on the use of
  appropriated funds to influence, whether directly or indirectly, congressional action on any
  legislation or appropriation matter pending before Congress.


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Office of the Deputy Inspector General for Auditing
  Contracting for Non-tactical Vehicles in Support of Operation Enduring Freedom
  (Follow-up Audit) The overall objective will be to determine whether management
  implemented the recommendations provided to mitigate risk areas specific to the contracting
  for Non-tactical Vehicles in Afghanistan; and, to determine whether implementation of the
  recommendations fixed the problems identified.

  DoD Compliance with Federal Acquisition Regulations Revisions for the Use of Cost
  Reimbursement Contracts The overall objective is to review DoD compliance with
  Federal Acquisition Regulation revisions on the use of cost-reimbursement contracts.

  Fiscal Year 2010 Purchases Made Through the Department of Interior The overall
  objective of the audit will be to review DoD procedures for purchases through Department of
  Interior (DOI). Specifically, we will examine the policies and procedures, and internal
  controls to determine whether there was a legitimate need for DoD to use DOI, whether DOI
  clearly defined requirements, whether DOI and DoD properly used and tracked funds, and
  whether defense procurement requirements were complied with.

  TRICARE Contract for Managed Care Support Services in the West Region The
  objective is to determine whether DoD is obtaining the best value for managed care support
  services in the TRICARE West region.




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Office of the Deputy Inspector General for Auditing


                             FINANCIAL MANAGEMENT


 AIR FORCE
 ON-GOING PROJECTS
  Department of the Air Force Military Pay in Support of the Global War on Terror
  (D2008-D000FP-0252.000) The objective is to determine whether the Department of the Air
  Force military payroll disbursed in support of the Global War on Terror is paid in accordance
  with established laws and regulations. Specifically, we will review DoD military pay
  disbursements to determine whether U.S. Air Force military personnel on Active Duty status
  are paid accurately and timely.

  Recovery of Advanced Education Costs From Disenrolled Air Force Academy Cadets
  (D2009-D000FD-0205.000) The Judge Advocate General, Headquarters, U.S. Air Force,
  requested this audit. Our objective is to determine whether the collection process to recover
  advanced education costs from “disenrolled” Air Force Academy cadets is effective.

 PLANNED PROJECTS
  Air Force General Fund Basic Financial Statements as of and for the Years Ending
  September 30, 2010 and 2009 The objective will be to determine whether the FY 2010 and
  2009 Air Force General Fund financial statements and accompanying notes, present fairly, in
  all material respects, its financial position, net cost of operations, and the status of its
  budgetary resources, in conformity with Generally Accepted Accounting Principles. We will
  not express an opinion on internal controls, but we will review the Air Force internal controls
  related to the reliability of financial reporting. In addition, we will review compliance with
  laws and regulations related to the financial statements.

  Air Force Working Capital Fund Basic Financial Statements as of and for the Years
  Ending September 30, 2010 and 2009 The objective will be to determine whether the
  FY 2010 and 2009 Air Force Working Capital Fund financial statements and accompanying
  notes, present fairly, in all material respects, its financial position, net cost of operations, and
  the status of its budgetary resources, in conformity with Generally Accepted Accounting
  Principles. We will not express an opinion on internal controls, but we will review the Air
  Force internal controls related to the reliability of financial reporting. In addition, we will
  review compliance with laws and regulations related to the financial statements.

  Propriety of Air Force Related Journal Voucher Adjustments Made in Defense
  Departmental Reporting System for Statement of Budgetary Resources The overall
  objective will be to determine why so many significant journal voucher adjustments are
  required at the Defense Departmental Reporting System level to produce the Statement of
  Budgetary Resources and the propriety of those adjustments. Specifically, we will determine
  that journal vouchers posted as part of the financial statement reporting process are properly
  supported, approved and posted, and determine that internal controls for those journal
  vouchers are adequate.




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Office of the Deputy Inspector General for Auditing

 ARMY
 ON-GOING PROJECTS
  Accounting and Financial Reporting for the Army’s Military Family Housing
  Privatization Program (D2007-D000FL-0233.000) The objective is to determine whether
  the financial accounting and reporting for the Army’s Military Family Housing Privatization
  Program is adequate.

  Army Working Capital Fund Logistics Modernization Program System Audit Trails and
  Trial Balances (D2009-D000FI-0139.000) The objective is to determine whether the internal
  controls over the Army Working Capital Fund accounting transactions originating in the
  Logistics Modernization Program system are adequate. We will determine whether the
  Logistics Modernization Program system properly supports accounting transactions as
  required by the U.S. Standard General Ledger. Additionally, we will determine the reasons for
  any abnormal account balances.

  Controls Over Unliquidated Obligations on Department of the Army Contracts
  Supporting the Global War on Terror (D2009-D000FC-0176.000) The objective is to
  determine whether the Department of the Army has established adequate controls over
  unliquidated obligations on Department of the Army contracts supporting the Global War on
  Terror. Specifically, we will determine whether unliquidated obligations are being properly
  accounted for and deobligated in a timely manner.

  Internal Controls Over Army, General Fund, Cash and Other Monetary Assets Held in
  Southwest Asia (D2008-D000FP-0132.000) The overall objective is to determine whether
  internal controls for Department of the Army, General Fund, Cash and Other Monetary Assets
  held in Southwest Asia are effectively designed and operating to adequately safeguard,
  account, document, and report Cash and Other Monetary Assets.

  Internal Controls Over the Management of the General Fund Enterprise Business System
  (Follow-up Audit) (D2009-D000FL-0217.000) The objective is to determine whether
  management implemented recommendations from DoD Inspector General Report No. 2008-
  041, “Management of the General Fund Enterprise Business System,” January 14, 2008.
  Specifically, we will follow-up on management actions to correct the program planning,
  acquisition, and justification deficiencies addressed in the report.

  Principal U.S. Army Corps of Engineers, Civil Works, Financial Statements for Fiscal
  Years Ended September 30, 2009 and 2008 (D2009-D000FE-0116.000) The objective is to
  determine whether the Principal U.S. Army Corps of Engineers, Civil Works, Financial
  Statements as of September 30, 2009 and 2008, taken as a whole, were presented fairly in all
  material respects and in conformity with generally accepted accounting principals of the
  United States of America. As part of the audit, we will review the Consolidated Balance Sheet
  as of September 30, 2009 and 2008, and the related Consolidated Statements of Net Cost, Net
  Position, and Budgetary Resources for the fiscal years then ended. In addition, we will review
  internal controls related to the reliability of financial reporting and compliance with laws and
  regulations that apply to the financial statements.




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Office of the Deputy Inspector General for Auditing

 PLANNED PROJECTS
  Department of the Army General Fund Principal Financial Statements for the Fiscal
  Years Ending September 30, 2010 and 2009 The objective will be to determine whether
  the Army General Fund Principal Financial Statements for the Fiscal Years Ending
  September 30, 2010 and 2009 taken as a whole were presented fairly in all material respects
  and in conformity with generally accepted accounting principles. In addition, we will review
  internal controls related to the reliability of the financial reporting and compliance with laws
  and regulations that pertain to the financial statements.

  Department of the Army Working Capital Fund Principal Financial Statements for the
  Fiscal Years Ending September 30, 2010 and 2009 The objective will be to determine
  whether the Army Working Capital Fund fairly presented its financial statements as of
  September 30, 2010 and 2009, taken as a whole, in all material respects, and in conformity
  with generally accepted accounting principles. As part of this objective, we will review
  internal controls related to the reliability of financial reporting and compliance with laws and
  regulations that relate to the financial statements.

  Internal Controls Over the Implementation of Defense Departmental Reporting
  System-Budgetary within the Army General Fund The overall objective will be to
  determine whether internal controls over the reliability of Army General Fund data in the
  Defense Departmental Reporting System-Budgetary are adequate. In addition, we will
  follow up on the Defense Finance and Accounting Systems implementation of the
  recommendations made in prior audits of Business Enterprise Information Services.

  Logistics Modernization Program Abnormal Account Balances and Audit Trails The
  objective will be to determine whether the Army has taken appropriate corrective action to
  address the abnormal balances in general ledger accounts reported by the Army Working
  Capital Fund installations using the Logistics Modernization Program system. In addition,
  we will determine whether adequate audit trails exist to support the general ledger account
  balances.

  Principal U.S. Army Corps of Engineers, Civil Works, Financial Statements for the
  Fiscal Years Ending September 30, 2010 and 2009 The objective will be to determine
  whether the Principal United States Army Corps of Engineers, Civil Works, Financial
  Statements as of September 30, 2010 and 2009 taken as a whole, were presented fairly in all
  material respects in conformity with generally accepted accounting principles of the United
  States of America. In addition, we will review internal controls related to the reliability of
  financial reporting and compliance with laws and regulations that apply to the financial
  statements.


 DEFENSE AGENCIES
 ON-GOING PROJECTS
  Assessment of the Reliability of the National Security Agency FY 2009 Financial
  Statements (D2009-D000FA-0291.000) The Committee Chairman, Senate Select
  Committee on Intelligence, requested that we conduct a review of the National Security
  Agency’s FY 2009 financial statements. The objective is to determine whether the financial
  statements are supported by reliable accounting data and supporting information.



FY 2010 Audit Plan                                                                              12
Office of the Deputy Inspector General for Auditing
  Defense Finance and Accounting Service Detailed Accounts Payable Balances in the
  Mechanization of Contract Administration Services System (D2009-D000FR-0236.000)
  The overall objective is to determine whether the Defense Finance and Accounting Service
  methodology for capturing accounts payable balances for contracts administered in the
  Mechanization of Contract Administration Services system results in accurate and timely
  accounts payable information. Specifically we will review the Defense Finance and Accounting
  Service methodology used to compile the monthly detailed accounts payable files provided to
  the Military Departments.

  Fiscal Year 2009 Defense Finance and Accounting Service Working Capital Fund
  Financial Statements (D2009-D000FL-0127.000) The objective is to determine whether
  Defense Finance and Accounting Service Working Capital Fund financial statements and related
  footnotes, taken as a whole, are presented fairly in all material respects, in conformity with
  generally accepted accounting principles in the United States of America, and in accordance
  with OMB Circular A-136, “Financial Reporting Requirements,” June 3, 2008. We will also
  assess internal controls and compliance with laws and regulations pertaining to the Defense
  Finance and Accounting Service Working Capital Fund financial reporting.


 PLANNED PROJECTS
  Defense Civilian Pay System Controls Placed in Operation and Tests of Operating
  Effectiveness for the Period October 1, 2009, Through May 31, 2010 The objective will
  be to determine whether the Defense Civilian Pay System general and application controls
  are adequately designed and effective to produce reliable data, and whether such controls are
  placed in operation as of May 31, 2010. This includes determining whether the Defense
  Finance and Accounting Service and the Defense Information Systems Agency designed the
  controls to achieve specific control objectives and complied with those controls. We will
  determine whether user organizations applied the controls as designed by the Defense
  Finance and Accounting Service and the Defense Information Systems Agency. In addition,
  we will determine whether the Defense Civilian Pay System complies with the Federal
  Financial Management Improvement Act of 1996 (Public Law 104-208).

  Defense Finance and Accounting Service Support of Overseas Contingency Operations
  The objective will be to determine if the Defense Finance and Accounting Service controls in
  conjunction with the current level of Defense Finance and Accounting Service personnel
  assigned to support the mission in Iraq, Afghanistan, and Kuwait are adequate to ensure
  accurate and timely accounting and contract payments.

  Defense Information Systems Agency, Center for Computing Services Controls Placed
  in Operation and Tests of Operating Effectiveness for the Period October 1, 2009,
  through March 31, 2010 The objective will be to determine whether Defense Information
  Systems Agency general controls over the Computing Services are adequately designed and
  effective, general and application controls for internal applications that support Computing
  Services management are adequately designed and effective and the Computing Services is
  in compliance with applicable Federal and DoD information technology and information
  assurance policies.




FY 2010 Audit Plan                                                                           13
Office of the Deputy Inspector General for Auditing

 DOD
 ON-GOING PROJECTS
  Demographic Data Supporting the DoD Mass Transit Benefit within the National
  Capital Region (D2008-D000FE-0124.000) The overall objective is to assess the reliability
  and completeness of the demographic data used to determine the eligibility of DoD personnel
  enrolled in the Mass Transit Benefit Program within the National Capital Region.

  DoD Methodology for the Valuation of Excess, Obsolete, and Unserviceable Inventory
  and Operating Materials and Supplies (D2009-D000FR-0212.000) Our objective is to
  evaluate the reasonableness of the DoD methodology for valuing excess, obsolete, and
  unserviceable inventory and operating materials and supplies. Specifically, we will
  determine whether the methodology and assumptions provide and acceptable estimate of the
  net realizable value for financial reporting and are in accordance with generally accepted
  accounting principles. Our scope will be limited, as the Under Secretary of Defense
  (Comptroller)/DoD Chief Financial Officer requested that our review not include
  determining whether the data set is traceable to source documentation.

  Joint Civilian Orientation Conference Fund (D2007-D000FI-0215.001) The Office of the
  Secretary of Defense Administrative Instructions No. 48, "Joint Civilian Orientation (JCOC)
  Fund" February 10, 1992, requires this audit. This audit is part of our previously announced
  audit of the Organizational Structure and Manager's Internal Control Program
  for the Office of the Assistant Secretary of Defense for Public Affairs and the American
  Forces information Service (Project No. D2007-D000FI-0215.000, June 29, 2007). Our audit
  objective is to determine whether the administration of the Joint Civilian Orientation Fund is
  in accordance with Public Law and DoD policies.

  Validity and Security of DoD Civilian Employee Accounts (D2009-D000FC-0177.000)
  The objective is to determine whether DoD made payments to valid DoD civilian employee
  accounts. Specifically, we will validate selected DoD civilian employee accounts. We will
  also determine whether these selected accounts are adequately secured.

 PLANNED PROJECTS
  DoD Agency-Wide Financial Statements for the Fiscal Years Ending
  September 30, 2010 and 2009 The objective will be to determine whether the DoD
  Agency-Wide Financial Statements as of September 30, 2010 and 2009, taken as a whole,
  were presented fairly, in all material respects, and in conformity with accounting principles
  generally accepted in the United States of America. In addition, we will determine whether
  these principles were consistently applied.

  DoD Contingent Legal Liabilities The objective will be to determine whether the process
  used by the Office of the Under Secretary of Defense (Comptroller) in estimating the
  contingent legal liabilities claimed on its financial statements is consistent with applicable
  policies and procedures.

  DoD Medicare Eligible Retiree Health Care Fund Fiscal Year 2010 Financial
  Statements The objective will be to determine whether the FY 2010 Medicare Eligible
  Retiree Health Care Fund financial statements and related footnotes, taken as a whole, are
  presented fairly in all material respects, in conformity with accounting principles generally
  accepted in the United States of America, and in accordance with Office of Management and
  Budget Circular No. A-136, “Financial Reporting Requirements,” June 3, 2008. We will also

FY 2010 Audit Plan                                                                             14
Office of the Deputy Inspector General for Auditing
  review internal control related to the reliability of financial reporting and compliance with
  laws and regulations that relate to the financial statements.

  DoD Processes for Reconciling the Fund Balance with Treasury for the Other Defense
  Organizations The overall objective will be to evaluate the DoD Processes for reconciling
  the Fund Balance with Treasury for the Other Defense Organizations.

  DoD Special Purpose Financial Statements for the Fiscal Years Ending September 30,
  2010 and 2009 The objective will be to provide an additional level of assurance on the
  process of reclassifying audited general-purpose financial statements for the Department of
  Defense to the formats of the special purpose financial statements as required by the Treasury
  Financial Manual Chapter 4700.

  Oversight of the Fiscal Year 2010 Military Retirement Fund Financial Statements The
  objective will be to oversee audit work performed by the Independent Public Accountants
  (IPA) that were contracted with to conduct the financial statement audit. The Independent
  Public Accountants will determine whether the FY 2010 Military Retirement Fund financial
  statements are presented fairly in accordance with Office of Management and Budget
  Circular A-136, “Financial Reporting Requirements,” June 3, 2008. The Independent Public
  Accountants will also assess internal controls and compliance with laws and regulations
  pertaining to the financial statements. In addition, the Independent Public Accountants will
  follow up on corrective actions resulting from previous audits of the Military Retirement
  Fund financial statements.

  Payments for Coordination of DoD Freight Shipments The objective will be to determine
  whether the DoD has achieved cost savings or other benefits through the Defense
  Transportation Coordination Initiative's use of third party logistics to accomplish improved
  coordination of freight shipments in the continental United States and in support of overseas
  operations, including Southwest Asia. We will also assess compliance with applicable laws
  and regulations.

  Payments to US Bank for Transportation Services The objective will be to determine
  whether the DoD maintained adequate controls over payments made to US Bank for
  PowerTrack services. Specifically, we will determine whether DoD established and
  maintained controls to ensure DoD paid the properly certified amount to US Bank.

  TRICARE Management Activity Contract Resource Management for Fiscal Year 2010
  Financial Statements The objective will be to determine whether the FY 2010 Contract
  Resource Management financial statements and related footnotes, taken as a whole, are
  presented fairly in all material respects, in conformity with accounting principals generally
  accepted in the United States of America, and in accordance with Office of Management and
  Budget Circular No. A-136, "Financial Reporting Requirements," June 3, 2008. We will also
  review internal control related to the reliability of financial reporting and compliance with
  laws and regulations that relate to the financial statements.




FY 2010 Audit Plan                                                                                15
Office of the Deputy Inspector General for Auditing

 MARINE CORPS
 ON-GOING PROJECTS
  FY 2008 Marine Corps Global War on Terror-Related Costs Processed through the
  Standard Accounting, Budgeting and Reporting System (D2009-D000FG-0183.000)
  The overall objective is to determine whether the Marine Corps accurately reported FY 2008
  costs related to the Global War on Terror. We will review whether Marine Corps
  documentation substantiates operation and maintenance obligations processed through the
  Standard Accounting, Budgeting and Reporting System.

  Internal Controls Over the United States Marine Corps Forces Special Operations
  Command Reporting of Authorized, Obligated, and Expended Funds (D2009-D000FN-
  0301.000) The overall objective is to determine whether internal controls over the United
  States Marine Corps Forces Special Operations Command comptroller operations are
  adequate. Specifically, we will determine whether controls are in place and operating
  effectively to properly report Marine Corps Forces Special Operations Command authorized,
  obligated, and expended baseline and supplemental funds in accordance with applicable
  guidance and regulations.

  Marine Corps Total Force System Information System (D2009-D000FN-0229.000) The
  objective is to determine whether effective processes for managing computing device
  configuration in accordance with Defense Information Systems Agency Field Security
  Operations, Security Technical Implementation Guides have been implemented in the Marine
  Corps Total Force System. Specifically, we will perform the audit to ensure that
  vulnerabilities have been properly detected and remediated.

  United States Marine Corps General Fund Statement of Budgetary Resources for the
  Fiscal Years Ending 2010 and 2009 (D2010-D000FN-0001.000) The audit objective is to
  determine whether the USMC General Fund Statement of Budgetary Resources for the Fiscal
  Years Ending September 30, 2010 and 2009, taken as a whole, are presented fairly in all
  material respects and in conformity with generally accepted accounting principles in the
  United States of America. In addition, we will review internal controls related to the
  reliability of financial reporting and compliance with laws and regulations that relate to the
  Statement of Budgetary Resources.

 NAVY
 ON-GOING PROJECTS
  Controls Over the Department of the Navy Military Payroll Processed in Support of the
  Global War on Terror at San Diego-Area Disbursing Centers (D2009-D000FC-
  0165.000) The Commander, Naval Installations Command, requested this audit. The
  objective is to determine whether Department of the Navy military payroll processed in
  support of the Global War on Terror is performed in accordance with established laws and
  regulations. Specifically, we will determine whether Department of the Navy San Diego-
  area disbursing centers and the Defense Finance and Accounting Service efficiently obtain
  and maintain adequate supporting documentation for combat zone entitlements related to
  Global War on Terror deployments.




FY 2010 Audit Plan                                                                           16
Office of the Deputy Inspector General for Auditing
  Information Assurance of the Outside the Continental United States Navy Enterprise
  Network as it Relates to the Global War on Terror (D2008-D000FN-0230.000) The
  objective is to assess the integrity, confidentiality, and availability of the Outside the
  Continental United States Navy Enterprise Network as it relates to the Global War on Terror.
  Specifically, we will determine whether the controls over Outside the Continental United
  States Navy Enterprise Network have been implemented and are operating effectively as
  prescribed by DoD Instruction 8500.2, “Information Assurance Implementation,”
  February 6, 2003.

 PLANNED PROJECTS
  Fiscal Year 2010 Department of the Navy Working Capital Fund Financial Statements
  The objective will be to determine whether the Department of Navy Working Capital Fund
  financial statements as of September 30, 2010 and 2009, taken as a whole, were presented
  fairly, in all material respects, and in conformity with generally accepted accounting
  principles of the United States of America.

  Fiscal Year 2010 Department of the Navy General Fund Financial Statements The
  objective will be to determine whether the principal Navy General Fund Financial Statement
  as of September 30, 2010 and 2009 taken as a whole were presented fairly in all material
  respects and in conformity with generally accepted accounting principles.

  Internal Controls and Data Reliability in the Processing of U.S. Navy Payments
  through the Automated Disbursing System The overall objective will be to determine
  whether the internal controls over U.S. Navy commercial and miscellaneous transactions
  processed through the Automated Disbursing System are adequate to ensure the reliability of
  the data processed.

  Internal Controls Over the Existence of Navy Military Equipment The objective will be
  to assess the effectiveness of the Navy’s internal controls over of the existence of Navy
  military equipment.

  Navy Enterprise Resource Planning The overall objective will be to determine whether
  the acquisition of the Navy’s Enterprise Resource Planning system incorporated requirements
  identifying systems controls that should be in place and functioning before implementation
  and deployment.

OTHER FINANCIAL
 ON-GOING PROJECTS
  Allowances and Differentials Paid to DoD Civilian Employees Supporting the Global
  War on Terror (D2009-D000FC-0199.000) The objective is to determine whether civilian
  pay disbursed in support of the Global War on Terror is paid in accordance with established
  laws and regulations. Specifically, we will determine whether eligible DoD Civilian
  employees properly received authorized allowances and differentials.

  Commercial Vendor Services Compliance with Federal Tax Reporting Requirements
  for Contractors Supporting Operations in Southwest Asia (D2009-D000FH-0292.000)
  The overall objective is to determine whether the Commercial Vendor Services in Iraq
  complied with federal tax reporting requirements for payments to contractors in support of
  operations in Southwest Asia for calendar years 2006 through 2008.


FY 2010 Audit Plan                                                                             17
Office of the Deputy Inspector General for Auditing
  DoD Contractor Debt Management System (D2009-D000FN-0300.000) The overall
  objective is to determine whether the Defense Finance and Accounting Service (DFAS) has
  controls in place to ensure the completeness and accuracy of data in the Contractor Debt
  System. Specifically, we will determine whether DFAS is properly recording, offsetting, and
  tracking contractor debts and collections.

  DoD Information Technology Business Systems Investment Review Process (D2009-
  D000FB-0082.000) The objectives are to determine whether the Defense Business Systems
  Management Committee and Business Management Area Investment Review Boards
  coordinated among defense business system modernization initiatives to eliminate conflicts
  and duplication of effort and ensured proper allocation of appropriated funds for defense
  business system investments.

  DoD Obligations and Expenditures of Funds Provided to DoS for the Training and
  Mentoring of the Afghan National Police (D2009-D000JB-0230.000) The objective is to
  review the status of Afghanistan Security Forces Fund money that the Department of
  Defense has provided to the Department of State for training of the Afghan National Police.
  Specifically, we will review a copy of the contract, appropriate task orders, statements of
  work, and any contract or task order modifications for training and mentoring to ensure they
  comply with all relevant Federal regulations and meet the needs of the Department of
  Defense. Further, we will review copies of contractor invoices to ensure that claimed costs
  are allowable and allocable, and reasonable for the services received.

  Funds Appropriated for Afghanistan and Iraq Processed Through the Foreign Military
  Sales Trust Fund (D2007-D000FD-0198.001) The overall objective is to determine
  whether funds processed through Foreign Military Sales Trust Fund are being properly
  managed. Our sub-objectives are to determine whether funds transferred into the Foreign
  Military Sales Trust Fund are properly accounted for, used for intend purposes and properly
  reported in the DoD financial reports.

  Headquarters U.S. Central Command Use of the Government Purchase Card
  (D2009-D000FJ-0265.000) We are required to perform periodic audits of the Department of
  Defense management of purchase cards per Title 10, United States Code, Section. 2784. The
  objective is to determine whether the U.S. Central Command use of government purchase cards
  complies with applicable laws and regulations.

  Joint Contracting Command Iraq/Afghanistan Transition to the Standard
  Procurement System-Contingency (D2009-D000FB-0112.000) The objective is to
  determine whether the deployment of the Standard Procurement System (to include the
  Standard Procurement System-Contingency configuration) in the Joint Contracting
  Command Iraq/Afghanistan, was properly planned and executed.
  Material Purchases Made Through Partnership Agreements at Corpus Christi Army
  Depot (D2009-D000FI-0150.000) The objective is to evaluate material purchases made at
  Corpus Christi Army Depot through partnership agreements with private-sector firms.
  Specifically, we will determine whether the partnership agreements in place with original
  equipment manufacturers are effective in minimizing the cost of direct materials to the depot.

  Utility Tax Relief Programs in Germany and the Netherlands (D2009-D000JB-
  0144.000) The objective is to determine whether DoD is effectively using the utility tax
  relief programs in Germany and the Netherlands.




FY 2010 Audit Plan                                                                           18
Office of the Deputy Inspector General for Auditing

 PLANNED PROJECTS
  Agreed-Upon Procedures for Reviewing the Fiscal Year 2010 Civilian Payroll
  Withholding Data and Enrollment Information The objective will be to assist the Office
  of Personnel Management in assessing whether Health Benefits, Life Insurance, and
  Retirement contributions and withholdings, and enrollment information submitted by the
  Defense Finance and Accounting Service to Office of Personnel Management for FY 2010
  were reasonable and accurate. We will assist Office of Personnel Management by performing
  agreed-upon procedures agreed to by the Office of Personnel Management, Chief Financial
  Officer and Office of Personnel Management, Inspector General.

  Capital Asset Management System-Military Equipment The objective will be to
  determine whether the data processed by Capital Asset Management System-Military
  Equipment is reliable and complete and the associated controls provide reasonable assurance
  that they are implemented, appropriately designed and effective.

  Controls Over Medical Treatment Facility Workload and Eligibility Data The objective
  will be to determine the adequacy of management controls with respect to Military Treatment
  Facility workload data entered into the Medical Expense and Performance Reporting System.
  In addition, we will review the accuracy of recipient eligibility information obtained from the
  Defense Enrollment Eligibility Reporting System as it pertains to the Medicare Eligible
  Retiree Health Care Fund.

  Internal Controls Over Commander’s Emergency Response Program Payments
  Processed Through the Deployable Disbursing System in Afghanistan The overall
  objective will be to determine whether internal controls over Commander’s Emergency
  Response Program payments are adequate to ensure that payments are proper and supported
  and that funds are used for their intended purpose.

  Management of Defense Enterprise Accounting and Management System The overall
  audit objective will be to determine whether U.S. Transportation Command and the Air
  Force properly justified Defense Enterprise Accounting and Management System and
  identified system requirements. We will also examine internal controls over the development
  of Defense Enterprise Accounting and Management System and evaluate the effectiveness of
  management’s assessment of internal controls as it relates to the audit objective.

  Use of iSupplier within the Process to Pay Cycle The objective will be to determine
  whether the iSupplier system will meet the needs of users and fulfill it's intended purpose.
  We will also assess the adequacy of system controls and processes.




FY 2010 Audit Plan                                                                               19
Office of the Deputy Inspector General for Auditing


                                 GUAM REALIGNMENT


 ON-GOING PROJECTS
  The Office of the Deputy Inspector General for Auditing is currently reviewing Guam related
  requirements and assessing our planned oversight efforts related to the relocation of
  8,000 Marines from Okinawa. This audit plan will be updated once the review is finalized.




FY 2010 Audit Plan                                                                        20
Office of the Deputy Inspector General for Auditing


                                        HEALTH CARE


 ON-GOING PROJECTS
  Medical Prime Vendor Contracts in Support of Operation Iraqi Freedom and
  Operation Enduring Freedom (D2008-D000LF-0267.000) The objective is to determine
  whether terms and conditions for the Medical/Surgical Prime Vendor contracts were
  adequately developed and the administration of the contracts and delivery orders was
  effective.

 PLANNED PROJECTS
  Follow-up of Health Care Provided by Military Treatment Facilities to Contractors in
  Southwest Asia The overall objective will be to determine whether controls for billing and
  collecting payment from contractors for health care provided by military treatment facilities
  in Southwest Asia are adequate.

  Private Treatment Centers in Southwest Asia The overall objective will be to determine
  whether DoD is appropriately funding healthcare received by contractor personnel at private
  treatment centers in Southwest Asia. Also, we will determine whether DoD has adequate
  oversight and controls over contractors that manage private treatment centers in Southwest
  Asia.

  TRICARE Controls Over Payments for Rehabilitation Services The overall objective
  will be to determine whether TRICARE has adequate controls to identify improper physical
  and occupational therapy claims.




FY 2010 Audit Plan                                                                            21
Office of the Deputy Inspector General for Auditing


                        INFORMATION TECHNOLOGY


 ON-GOING PROJECTS
  Controls for Information Assurance at the Defense Threat Reduction Agency
  (D2009-D000LB-0216.000) The objectives are to determine whether personnel responsible
  for information assurance are trained and certified in accordance with regulations and
  whether information system accounts are disabled when employees are terminated.

  Controls Over the Common Access Card in Non-Department of Defense Agencies
  (D2009-D000JA-0136.000) The objective is to determine whether controls over Common
  Access Cards provided to civilians and contractors working for non-Department of Defense
  agencies were in place and worked as intended.

  DoD Web Site Security Policy Compliance (D2009-D000LB-0147.000) This audit was
  requested by the Deputy Secretary of Defense. The overall objective is to determine whether
  DoD components are in compliance with Web site security policy. Specifically, we will
  determine whether DoD components have controls and processes in place to ensure review
  and approval of all information posted to publicly accessible Web sites before posting.




FY 2010 Audit Plan                                                                         22
Office of the Deputy Inspector General for Auditing


                                        LOGISTICS


 ON-GOING PROJECTS
  Air Force Depot Maintenance Public-Private Partnerships (D2009-D000LD-0110.000)
  The objective is to examine the management of the public-private partnership arrangements
  entered into by Air Force depots. Specifically, we will determine whether the Air Force
  depots have established baselines and metrics to measure public-private partnership benefits.

  Army Deferred Maintenance on the Abrams Tank Fleet as a Result of the Global War
  on Terror (D2008-D000FJ-0210.000) The objective is to determine the extent and causes
  of deferred maintenance on the Army Abrams tanks that were used in the Global War on
  Terror.

  Controls Over the Accountability and Disposition of Government Furnished Property
  in Iraq (D2009-D000JB-0307.000) This audit is being conducted in response to a U.S.
  Central Command request to focus oversight on asset accountability to ensure that U.S.
  funded assets are properly accounted for and that there is a process for the proper transfer,
  reset, or disposal of assets. The objective is to determine whether DoD has adequate controls
  over Government-furnished property, and whether policies and procedures exist for the
  proper transfer, reset, or disposal of Government-furnished property, and whether those
  policies and procedures are being executed adequately.

  Controls Over the Disposition of Equipment at the Defense Reutilization and
  Marketing Office at Camp Arifjan, Kuwait (D2010-D000JA-0054.000) This audit is
  being conducted in response to a U.S. Central Command request to focus oversight on the
  U.S.-funded assets to ensure that they are properly accounted for and that there is a process
  for their proper transfer, reset, or disposal. The overall objective is to evaluate whether
  adequate policies and procedures in place to ensure the proper disposition of equipment at the
  Defense Reutilization and Marketing Office Arifjan, Kuwait. Specifically, we will evaluate
  whether adequate controls exist over the receipt, inspection, coding, and disposition of
  equipment in accordance with applicable guidance.

  DoD’s Plans for the Drawdown and Reset of Property in Iraq (D2009-D000JB-
  0280.000) The DoD IG will evaluate DoD’s plans for the drawdown and reset of DoD
  property in Iraq. Specifically, we will determine whether: roles, responsibilities and lines of
  reporting are clearly defined and documented; the plans comprehensively address issues
  including property accountability, visibility, reset, and return; and realistic milestones have
  been established for the initiation and completion of drawdown and reset activities.

  Management and Accountability of Property Purchased at Regional Contracting
  Centers in Afghanistan (D2008-D000JC-0273.000) The objective is to evaluate the
  management and accountability of property purchased through the regional Contracting
  Centers in Bagram Airfield, Afghanistan. Specifically, we will determine whether
  accountable property is properly recorded in the Theater Property Book Office at Bagram Air
  Field, Afghanistan.




FY 2010 Audit Plan                                                                             23
Office of the Deputy Inspector General for Auditing
  Management of Operations Within the Theater Retrograde, Camp Arifjan, Kuwait
  (D2010-D000JA-0055.000) This audit is being conducted in response to a U.S. Central
  Command request to focus oversight on the U.S.-funded assets to ensure that they are
  properly accounted for and that there is a process for their proper transfer, reset, or disposal.
  The overall objective is to determine whether DoD is effectively managing operations in the
  Theater Retrograde, Camp Arifjan, Kuwait. Specifically, we will determine whether
  adequate policies and procedures are in place at the Retro Sort, General Supply Warehouse,
  and Theater Redistribution Center for proper reutilization and disposition of equipment. We
  will also determine whether adequate resources are available to effectively meet current and
  anticipated volume of equipment at the Theater Retrograde during the drawdown of U.S.
  forces from Iraq.

  Review of Inter-Theater (D2009-D000LC-0240.002) and Intra-Theater (D2009-
  D00SPO-0310.000) Transportation Planning, Capabilities, and Execution for the
  Drawdown from Iraq The inter-theater portion is the second in a series of reviews related
  to the relocation of personnel and assets during the Iraq drawdown. The first review focused
  on U.S. Transportation Command's planning process. This review will track the execution of
  the drawdown plan. Our objective is to determine if the transportation plan will meet the
  withdrawal goals of August 31, 2010, for combat troops and December 31, 2011, for
  remaining troops and assets. Specifically, we will evaluate the plan's assumptions,
  transportation methods, disposition of equipment, and timeframe limitations. The objective
  of the intra-theater portion is to determine whether U.S. Central Command and its
  subordinate and supporting organizations' intra-theater logistical planning and selected
  capabilities are adequate to support and manage the movement of cargo and equipment being
  drawn down from Iraq. The intra-theater review will be done in a four-phased approach to
  include recent brigade-sized intra-theater movement of cargo and equipment, Multi-National
  Forces Iraq intra-theater planning for the drawdown, evaluation of potential bottlenecks in
  the movement of cargo and equipment, the execution of the expedited drawdown period in
  2010.

  Transportation for DoD Personnel and Cargo Relocation from Iraq Drawdown (Project
  No. D2009-D000LC-0240.001) The objective is to evaluate the planning process used by
  the U.S. Transportation Command in determining how to meet the combat troop withdraw
  goals by August 31, 2010. Specifically, we will evaluate the determination of transportation
  needs, the identification of transportation methods, and the timeline for relocating combat
  troops and their support equipment.

 PLANNED PROJECTS
  National Response Framework-ESF 3, Public Works and Engineering The overall
  objective will be to review DoD’s Emergency Support function plans for public works.
  Specifically, we will determine whether DoD’s plans are adequate and in compliance with
  the National Response Framework.

  Public Private Partnership Agreements at Anniston Army Depot The overall objective is
  to evaluate the public private partnership agreements utilized at Anniston Army Depot.
  Specifically, we will determine whether the Anniston Army Depot partnership agreements
  are in compliance with statutory requirements and determine what internal control
  procedures are being used by Anniston Army Depot to measure the effectiveness of the
  partnership agreements.




FY 2010 Audit Plan                                                                               24
Office of the Deputy Inspector General for Auditing


  Transportation of Personnel and Cargo for Deployment and Redeployment in
  Afghanistan The overall objective is to evaluate U.S. Central Command and U.S.
  Transportation Command efforts to overcome the challenges of transporting troops, support
  personnel, contractors, and equipment to and within Afghanistan for the deployment and
  redeployment efforts related to Operation Enduring Freedom.




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Office of the Deputy Inspector General for Auditing


                 READINESS AND FORCES MANAGEMENT


 ON-GOING PROJECTS
  Central Issue Facilities (D2008-D000LD-0245.000) The objective is to determine whether
  central issue facilities are providing the required clothing and equipment to deploying
  personnel, and whether those personnel are returning the clothing and equipment when their
  deployments are complete.

  Information Operations in Iraq (D2009-D000JA-0108.002) The Commander, U.S.
  Central Command, requested this project. The objective is to evaluate Information
  Operations activities in support of Operation Iraqi Freedom. Specifically, we will determine
  the process for establishing Psychological Operations requirements, and identify the
  resources applied against those requirements.

  Multi-National Force—Iraq/Multi-National Corps—Iraq Fire Services Inspection and
  Training Program (D2009-D000JB-0181.000) The objective is to assess whether Multi-
  National Force—Iraq is meeting requirements for fire services inspection and training
  through the use of contracted services. Specifically, we will review fire inspection reports to
  determine whether fire inspection personnel are properly performing fire safety reviews. We
  will identify contracted personnel assigned as expeditionary fire fighters and review their
  training records to determine whether the training they completed met contract, DoD, and
  Army requirements. In addition, we will assess the effectiveness of quality control and
  quality assurance provisions of contracts and task orders related to the Fire Services
  Inspection and Training Program.

  U.S. European Command Civilian Staffing Procedures (D2009-D000JB-0109.000) This
  audit is being performed at the request of the Chief of Staff, U.S. European Command. The
  objective is to determine whether the U.S. European Command civilian staffing efforts
  provide adequate staffing to support their Operation Enduring Freedom activities.
  Specifically, we will determine whether staffing actions were performed in a timely manner
  and whether the staffing levels were affected by restrictions in the position announcements.

 PLANNED PROJECTS
  DoD Information Operations Authorities and Policy This audit was requested by the
  Under Secretary of Defense for Policy. The objective will be to determine current DoD
  authorities, policy, business processes, and interagency coordination for Information
  Operations.

  Force Protection of Afghanistan Forward Operating Bases, Camps, and Stations The
  objective will be to determine whether force protection measures in use at Afghanistan
  Forward operating bases, camps, and stations are in accordance with applicable regulations
  and reflect current threats.




FY 2010 Audit Plan                                                                             26
Office of the Deputy Inspector General for Auditing
  Realignment of Contractor Support in Response to Future Drawdown of Forces from
  Iraq The objective is to review the planning and management of actions taken to adjust
  contractor support in response to the drawdown of U.S. forces from Iraq. Specifically, we
  will evaluate the process and methodology used to determine de-scoping actions associated
  with the Logistics Civil Augmentation Program contract.




FY 2010 Audit Plan                                                                        27
Office of the Deputy Inspector General for Auditing


                                           OTHER


REAL PROPERTY
 ON-GOING PROJECTS
  2003 Real Estate Transactions of the Armed Forces Retirement Home-Gulfport
  (D2009-D000CG-0276.000) This audit is in anticipation that the pending National Defense
  Authorization Act for FY 2010 will require the DoD OIG to report on the Armed Forces
  Retirement Home’s 2003 real estate transactions and subsequent property boundary
  adjustments in Gulfport, Mississippi. The overall objective is to determine whether the
  Armed Forces Retirement Home complied with applicable laws and regulations when
  conducting its real estate transactions. We will review the decisions that led to the real estate
  transactions and determine whether the Armed Forces Retirement Home followed
  appropriate procedures during the acquisition, modification, and sale of the property. We
  will also review other issues related to the overall real estate transactions.

COMMERCIAL SOLICITATION
  PLANNED PROJECTS
  Impact of Legislation and Directives on Personal Commercial Solicitation of Military
  Personnel The objective will be to Review the impact of DoD Instruction 1344.07,
  “Personal Commercial Solicitation on DoD Installations” and review the reforms included in
  the law (P.L. 109-290) on the quality and suitability of sales of securities and insurance
  products marketed to members of the Armed Forces.




FY 2010 Audit Plan                                                                              28
Office of the Deputy Inspector General for Auditing

Appendix A. DoD Strategic Goals, OIG Management Challenges
            and GAO High Risks

DoD Strategic Goals                                                  Ongoing       Planned
Successfully Conduct Overseas Contingency Operations                    56            12
Reorient Capabilities and Forces                                         5             2
Reshape the Defense Enterprise                                          82            45
Develop a 21st Century Total Force                                       1             4
Achieve Unity of Effort                                                  1             1

OIG Management Challenges
Financial Management                                                    30            30
Acquisition Processes and Contract Management                           36             9
Joint Warfighting and Readiness                                         20             5
Information Assurance, Security and Privacy                              6             3
Health Care                                                              1             4
Equipping and Training Iraqi and Afghan Security Forces                  1             1
GAO High Risks
Strategic Human Capital Management                                       1             1
Managing Federal Real Property                                           1             0
Protecting the Federal Government’s Information Systems and
    the Nation’s Critical Infrastructure                                 5             3
Establishing Effective Mechanisms for Sharing Terrorism-
    Related Information to Protect the Homeland                          0             1
Approach to Business Transformation                                      5             6
Business Systems Modernization                                           5            10
Personnel Security Clearance Program                                     0             0
Support Infrastructure Management                                        4             0
Financial Management                                                    31            28
Supply Chain Management                                                  8             1
Weapon Systems Acquisition                                               6             2
Contract Management                                                     29            7
Ensuring the Effective Protection of Technologies Critical to U.S.
    National Security Interests                                          3             0
Management of Interagency Contracting                                    2             1
Improving and Modernizing Federal Disability Program                     0             0
Note: Ongoing and planned audits may cover more than one goal, challenge or high-risk area.



FY 2010 Audit Plan                                                                            29