US Defense Dept. Can’t Account For $8.7 Billio

US Defense Dept. Can’t Account For $8.7 Billion

TheDefense Department is unable to account for $8.7 billion of the $9.1billion in Development Fund for Iraq monies in received forreconstruction in Iraq. This according to a study published today bythe Special Inspector General for Iraq Reconstruction.
“This situation occurred because most DoD organizations receivingDFI (Development Fund for Iraq) funds did not establish the requiredDepartment of the Treasury accounts and no DoD organization wasdesignated as the executive agent for managing the use of DFI funds,”the report states.
The Special Inspector General for Iraq Reconstruction (SIGIR) findsthat only one Defense organization actually set up the accountsrequired by the Treasury.

“The breakdown in controls left the funds vulnerable to inappropriate uses and undetected loss,” SIGIR says.
The study recommends that the Secretary of Defense create newaccounting and reporting procedures to avoid such mistakes in thefuture. It also recommends designating an executive agent to overseeprogress, establishing measurable milestones, and determining whetherany DoD organizations are still holding DFI funds.
(Source: Federal News Radio)