Appendices for this Quarterly Report, including contractor - PSM

611 Pages·2008·4.23 MB·English

Appendix A
StAtUtoRY ReqUiRementS
This appendix cross-references the pages of this Report to the reporting requirements
under P.L. 108-106 Sec. 3001, as amended by P.L. 108-375, Sec 1203, P.L. 109-102, Sec.
599, P.L. 109-364, Sec. 1054, P.L. 109-440, and P.L. 110-28.
JAnUARY 30, 2008 i REPORT TO CONGRESS i A-
Appendix A
Section Statute SIGIR Action Page #
Supervision
The Inspector General shall report directly to, and be under the general Report to the Secretary of State and
Section 3001(e)(1) 1-220
supervision of, the Secretary of State and the Secretary of Defense. the Secretary of Defense.
Duties
It shall be the duty of the Inspector General to conduct, supervise, and
coordinate audits and investigations of the treatment, handling, and Review appropriated funds. 1-220
Section 3001(f)(1) expenditure of amounts appropriated or otherwise made available to the Programs, operations, contracts using App. F
Iraq Relief and Reconstruction Fund, and of the programs, operations, and appropriated funds. App. G
contracts carried out utilizing such funds, including—
Review obligations and expenditures
Section 3001(f)(1)(A) The oversight and accounting of the obligation and expenditure of such funds; App. F
of appropriated funds.
App. G
Review reconstruction activities
Section 3001(f)(1)(B) The monitoring and review of reconstruction activities funded by such funds; 1-158
funded by appropriations.
Review contracts using appropriated
Section 3001(f)(1)(C) The monitoring and review of contracts funded by such funds; App. F
funds.
The monitoring and review of the transfer of such funds and associated
Review internal and external transfers App. G
Section 3001(f)(1)(D) information between and among departments, agencies, and entities of the
of appropriated funds. App. H
United States, and private and nongovernmental entities;
Section 3001(f)(1)(E) The maintenance of records on the use of such funds to facilitate future audits 159-212
Maintain audit records.
and investigations of the use of such funds. App. J
The Inspector General shall establish, maintain, and oversee such systems,
Establish, maintain, and oversee 159-210
Section 3001(f)(2) procedures, and controls as the Inspector General considers appropriate to
systems, procedures, and controls.
discharge the duty.
In addition, the Inspector General shall also have the duties and responsibilities
Section 3001(f)(3) Duties as specified in IG Act. 1-210
of inspectors general under the Inspector General Act of 1978.
The Inspector General shall coordinate with, and receive the cooperation of,
Section each of the following: The Inspector General of the Department of State, The Coordination with IGs of State, DoD,
213-220
3001(f)(4)(A)(B)&(C) Inspector General of the Department of Defense, and The Inspector General of & USAID.
the United States Agency for International Development.
Personnel, Facilities, and Other Resources
Upon request of the Inspector General for information or assistance from any
department, agency, or other entity of the Federal Government, the head
Section 3001(h)(4)(A) of such entity shall, insofar as is practicable and not in contravention of any Expect support as requested. 1-220
existing law, furnish such information or assistance to the Inspector General, or
an authorized designee.
Reports
Not later than 30 days after the end of each fiscal-year quarter, the Inspector
General shall submit to the appropriate committees of Congress a report
summarizing for the period of that quarter and, to the extent possible, the
Report – 30 days after the end of
period from the end of such quarter to the time of the submission of the
each calendar quarter. Summarize
report, the activities of the Inspector General and the activities under programs
Section 3001(i)(1) activities of IG. Detailed statement 1-220
and operations funded with amounts appropriated or otherwise made
of all obligations, expenditures, and
available to the Iraq Relief and Reconstruction Fund. Each report shall include,
revenues.
for the period covered by such report, a detailed statement of all obligations,
expenditures, and revenues associated with reconstruction and rehabilitation
activities in Iraq, including the following –
Obligations and expenditures of
Section 3001(i)(1)(A) Obligations and expenditures of appropriated funds. App. G
appropriated funds.
A project-by-project and program-by-program accounting of the costs
Project-by-project and program-by-
incurred to date for the reconstruction of Iraq, together with the estimate of
program accounting of costs. Estimate
Section 3001(i)(1)(B) the Department of Defense, the Department of State, and the United States 22, 42-43
cost to complete each project or
Agency for International Development, as applicable, of the costs to complete
program.
each project and each program.
A-2 i SPECIAL INSPECTOR GENERAL FOR IRAQ RECONSTRUCTION
Appendix A
Section Statute SIGIR Action Page #
Revenues attributable to or consisting of funds provided by foreign nations
Revenues, obligations, and
Section 3001(i)(1)(C) or international organizations, and any obligations or expenditures of such 133-158
expenditures of donor funds.
revenues.
Revenues, obligations, and
Revenues attributable to or consisting of foreign assets seized or frozen, and
Section 3001(i)(1)(D) expenditures of funds from seized or 16-17,
any obligations or expenditures of such revenues.
frozen assets. App. I
Operating expenses of agencies or any
Operating expenses of agencies or entities receiving amounts appropriated or
Section 3001(i)(1)(E) organization receiving appropriated App. G
otherwise made available to the Iraq Relief and Reconstruction Fund.
funds.
In the case of any contract described in paragraph (2):
A contract described in this paragraph is any major contract or other
agreement that is entered into by any department or agency of the United
States Government that involves the use of amounts appropriated or otherwise
Section 3001(i)(1)(F) made available to the Iraq Relief and Reconstruction Fund with any public or Describes a contract. App. F
private sector entity for any of the following purposes:
To build or rebuild physical infrastructure of Iraq.
To establish or reestablish a political or societal institution of Iraq.
To provide products or services to the people of Iraq.
Section Amount of each contract or other
The amount of the contract or other agreement; App. F
3001(i)(1)(F)(i) agreement.
Section Brief discussion of each contract
A brief discussion of the scope of the contract or other agreement; App. F
3001(i)(1)(F)(ii) scope.
Discussion of how potential
A discussion of how the contracting department or agency identified, and
contractors were identified, how
Section solicited offers from, potential contractors to perform the contract, together
offers were solicited, and a list Note 1
3001(i)(1)(F)(iii) with a list of the potential contractors that were issued solicitations for the
of contractors that were issued
offers.
solicitations.
The justification and approval documents on which was based the Justification and approval documents
Section
determination to use procedures other than procedures that provide for full for contracts that were not full and Note 1
3001(i)(1)(F)(iv)
and open competition. open competitions.
The Inspector General shall submit to the appropriate committees of Congress
semiannual reports meeting the requirements of Section 5 of the Inspector
Shall be submitted not later than July
General Act of 1978. The first such report for a year, covering the first six
Section 3001(i)(3) 31 of that year, and the second such Complete
months of the year, shall be submitted not later than July 31 of that year, and
report.
the second such report, covering the second six months of the year, shall be
submitted not later than January 31 of the following year.
SIGIR will take final written report in
The Inspector General shall publish each report under this subsection in both
electronic format, translate and post www.
Section 3001(i)(4) English and Arabic on the Internet Website of the Secretary of State and the
to Website; encourage DoD and DoS sigir.mil
Secretary of Defense.
to link to SIGIR Web site.
Each report under this subsection may include a classified annex if the If necessary, develop a classified
Section 3001(i)(5) N/A
Inspector General considers it necessary. annex.
Report Coordination
The Inspector General shall also submit each report under subsection (i) to the Submit report to Secretary of State
Section 3001(j) 1/30/2008
Secretary of State and the Secretary of Defense. and Secretary of Defense.
Note 1: This information is not included in this quarterly report.
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Appendix B
CRoss-RefeRenCe of RepoRt to iG
ACt of 978
This appendix cross-references the pages of this report to the reporting
requirements under the Inspector General Act of 1978, as amended,
5 U.S.C. app.
JAnUARY 30, 2008 i REPORT TO CONGRESS i B-
Appendix B
Section Statute SIGIR Action Page #
• Extract pertinent information from IIGC member semiannual
Section “Description of significant problems, abuses, and reports.
App. J
5(a)(1) deficiencies... ” • List problems, abuses, and deficiencies from SIGIR audit reports,
investigations, and inspections.
Section “Description of recommendations for corrective action…with • Extract pertinent information from IIGC member semiannual
5(a)(2) respect to significant problems, abuses, and deficiencies... ” reports. App. J
• List recommendations from SIGIR audit reports.
“Identification of each significant recommendation
Section • List all instances of incomplete corrective action from previous
described in previous semiannual reports on which corrective App. J
5(a)(3) semiannual reports.
action has not been completed...”
• Extract pertinent information from IIGC member semiannual
Section “A summary of matters referred to prosecutive authorities
reports. 159-212
5(a)(4) and the prosecutions and convictions which have resulted... ”
• List SIGIR Investigations that have been referred.
• Extract pertinent information from IIGC member semiannual
“A summary of each report made to the [Secretary of
Section reports.
Defense] under section 6(b)(2)... ” (instances where 159-212
5(a)(5) • List instances in which information was refused SIGIR auditors,
information requested was refused or not provided)
investigators, or inspectors.
“A listing, subdivided according to subject matter, of each • Extract pertinent information from IIGC member semiannual
Section
audit report issued...” showing dollar value of questioned reports. App. J
5(a)(6)
costs and recommendations that funds be put to better use. • List SIGIR audit reports.
• Extract pertinent information from IIGC member semiannual
Section
“A summary of each particularly significant report... ” reports. App. J
5(a)(7)
• Provide a synopsis of the significant SIGIR audits.
• Extract pertinent information from IIGC member semiannual
Section “Statistical tables showing the total number of audit reports reports. 159-202
5(a)(8) and the total dollar value of questioned costs... ” • Develop statistical tables showing dollar value of questioned cost App. J
from SIGIR audits.
• Extract pertinent information from IIGC member semiannual
“Statistical tables showing the total number of audit reports Summary
Section reports.
and the dollar value of recommendations that fund be put of Perf.
5(a)(9) • Develop statistical tables showing dollar value of funds put to
to better use by management...” App. J
better use by management from SIGIR audits.
“A summary of each audit report issued before the
commencement of the reporting period for which
• Extract pertinent information from IIGC member semiannual
no management decision has been made by the end
Section reports.
of reporting period an explanation of the reasons App. J
5(a)(10) • Provide a synopsis of SIGIR audit reports in which no management
such management decision has not been made, and a
decision has been made.
statement concerning the desired timetable for achieving a
management decision...”
• Extract pertinent information from IIGC member semiannual
Section “A description and explanation of the reasons for any reports.
App. J
5(a)(11) significant revised management decision... ” • Explain SIGIR audit reports in which significant revisions have been
made to management decisions.
• Extract pertinent information from IIGC member semiannual
“Information concerning any significant management
Section reports.
decision with which the Inspector General is in App. J
5(a)(12) • Explain SIGIR audit reports in which SIGIR disagreed with
disagreement...”
management decision.
“Information described under Section 804 [sic] of the • Extract pertinent information from IIGC member semiannual
Section
Federal Financial Management Improvement Act of 1996...” reports. 159-202
5(a)(13)
(instances and reasons when an agency has not met target • Provide information where management has not met targets from App. J
dates established in a remediation plan) a remediation plan.
Section “Information concerning the number and types of contract • List SIGIR audits that have concerned contract audits.
App. J
8(f)(1) audits…” • List pertinent information from IIGC members.
B-2 i SPECIAL INSPECTOR GENERAL FOR IRAQ RECONSTRUCTION
Appendix c
impAct of SiGiR opeRAtionS
SIGIR’s work impacts many aspects of the impact of SiGiR Audits
U.S. mission in Iraq and the Government of SIGIR reports the financial impact of audits
Iraq. To validate the financial or non-financial semiannually, as required by law. Through
benefits resulting from SIGIR work, SIGIR January 30, 2008, SIGIR Audits saved and
requires the staff to document the connection recovered funds of about $57.9 million and
between the benefits reported and the work improved the use of $40.0 million of funds.
performed. SIGIR recommendations have SIGIR Audits also challenged payments of
enabled U.S. and Iraqi reconstruction manage- $7.56 million, including possible duplicate
ment officials to: payments, overpayments, or for work that was
• reduce expenditures and improve efficiency not completed. This is an increase of $32.2
and effectiveness million since the SIGIR July 30, 2007 report.
• implement or improve fund and asset con- The majority of the savings ($29 million)
trols resulted from a SIGIR recommendation that
• enhance construction quality by ensuring the Defense Contract Audit Agency (DCAA)
adequacy of design specifications, stopping review contractor invoices for the Iraqi Police
inadequate construction, and avoiding re- Training Program. For a detailed listing of
work these financial impacts, see Table C-1.
• increase potential oil revenue Significant non-financial benefits include
• avoid waste and unnecessary expenditures those associated with a recommendation that
Kellogg Brown and Root Services, Inc. (KBR)
discontinue the practice of routinely marking
almost all of the information it provides to the
U.S. government as “KBR proprietary data.”
The government’s prohibition of this practice
results in improved accountability (improved-
management and internal controls).
JAnUARY 30, 2008 i REPORT TO CONGRESS i C-
Appendix c
Detail of Impact of SIGIR Audits ($ millions)
Dollars Saved/Funds Challenged
Audit # Recovered Better Use Payments Non-financial Impact
Federal Deployment Center Forward Operations
04-003 DFI $19.00
at the Kuwait Hilton
Oversight of Funds Provided to Iraqi Ministries Improved controls over
05-004 DFI
through the National Budget Process payroll
05-017 DFI $7.80
Award Fee Process for Contractors Involved in
7/16/05 $.53a
Iraq Reconstruction
9/20/05 $.67b
Improved property
Review of Task Force Shield Programs 06-009 $12.80
accountability
Review of the MNSTC-I Reconciliation of the
Iraqi Armed Forces Seized Assets Fund/Iraqi
06-010/015 $1.50c $3.46
Armed Forces Seized Assets Fund: Review of
Contracts and Financial Documents
Survey of the Status of Funding for Iraq
Programs Allocated to the DoS Bureau of
06-016 $23.30d
International Narcotics and Law Enforcement
Affairs, as of December 31, 2005
Controls Over Unliquidated Obligations in the
07-011 $3.20
Iraq Relief and Reconstruction Fund
Interim Review of DynCorp International, LLC,
Spending Under Its Contract for the Iraqi Police 07-016 $.10 $29.00 $4.10
Training Program
Total $57.90 $40.00 $7.56
Notes:
a Recovery of cash turned in to Comptroller by audit and investigations: $527,456.
b Recovery of cash turned in to Comptroller by audit and investigations: $670,664.
c Audit recommendations resulted in de-obligation of $1,512,303.29 from multiple contracts.
d Audit recommendation prevented loss of medical equipment, which would have resulted in about $23.30 million in replacement cost,
per independent assessment.
Table C-1
C- i SPECIAL INSPECTOR GENERAL FOR IRAQ RECONSTRUCTION
Appendix c
impact of SiGiR investigations These impacts are the result of investiga-
SIGIR investigators have recovered or seized tive actions from 336 open, closed, or referred
assets valued at about $17.2 million as a result cases. Seized funds were recovered from sub-
of court-ordered restitution and forfeiture. jects identified in ongoing and closed SIGIR
Investigators also prevented about $3.8 million investigations. Recoveries are documented
of incurred cost by alerting contracting officers from fraudulent payments and seizures of
to improper contracts. SIGIR’s investigative unaccounted-for cash. Property seizures reflect
work contributed to improving controls in the assessed value of currently seized assets
contracting and financial management and purchased with illegally obtained funds and
identified another $2.1 million in potential recovered in criminal investigations.
recovery. For details, see Table C-2.
Detail of Financial-Related Impact of SIGIR Investigations ($ millions)
Court-ordered
Restitution/
Forfeiture Cost Avoidance Potential Recovery
Total $17.2 $3.8 $2.1
Note:
Numbers are provided in aggregate. Individual tracking is done on a case level and maintained
by SIGIR AIG for Investigations.
Table C-2
JAnUARY 30, 2008 i REPORT TO CONGRESS i C-
Appendix c
C- i SPECIAL INSPECTOR GENERAL FOR IRAQ RECONSTRUCTION
Appendix d
cRoss-RefeRence of siGiR bUdGet teRms
The Special Inspector General for Iraq Reconstruction (SIGIR) collects and presents funding
data from different sources. This appendix cross-references budget terms associated with IRRF
ISFF, ESF, CERP, INL as well as International Support for Iraq Reconstruction.
  SIGIR Terminology
  Appropriation Allocation Obligation Expenditure  
Fund Type Source Terminology Source
IRRF 1, IRRF 2 Appropriation Apportion Obligation Disbursement DoS, Iraq Weekly Status 
ISFF FY 2005 – FY 2007 Appropriation Apportion Obligation Disbursement DoD, Secretary of the Army Update; 
USACE Financial Management 
System, ISFF Funds Execution Report 
ESF FY 2003 Base and Supplemental,  Appropriation Allocation Obligation Expenditure ITAO, Response to SIGIR data call
ESF FY 2006 Supplemental, ESF FY 2006 
Appropriation Allocation Obligation Expenditure USAID, Response to SIGIR data call
State, ESF FY 2007 Supplemental and 
Continuing Resolution Appropriation Amount NA NA ITAO, Essential Indicators Report
CERP FY 2004 – FY 2007 Appropriation NA Obligation Disbursement MNC-I, Response to SIGIR data call
INL Allotment NA Obligation Liquidations/ INL, Response to SIGIR data call
Expenditure
International Support for Iraq  NA NA Commitment Disbursement Development Assistance Database 
Reconstruction (www.mop-Iraq.org/dad)
jAnUARY 30, 2008 i REPORT TO CONGRESS i d-