9/3/14, Dept. of Defense, Inspector General, "Global Combat Support System--Army Did Not Comply with Treasury and DoD Financial Reporting Requirements," dodig.mil
9/4/14, "Army can't track spending on $4.3b system to track spending, IG finds," Washington Examiner, Mark Flatten
"More than $725 million was spent by the Army
on a high-tech network for tracking supplies and expenses that failed
to comply with federal financial reporting rules meant to allow auditors
to track spending, according to an inspector general’s report issued Wednesday.
The Global Combat Support System-Army,
a logistical support system meant to track supplies, spare parts and
other equipment, was launched in 1997. In 2003, the program switched
from custom software to a web-based commercial software system.
About $95 million was spent before the switch was made, according to the report from the Department of Defense IG.
As of this February, the Army had spent $725.7 million on the system, which is ultimately expected to cost about $4.3 billion.
The problem, according to the IG, is that the Army has failed to
comply with a variety of federal laws that require agencies to
standardize reporting and prepare auditable financial statements.
“This occurred because DOD and Army management did not have adequate
controls, including procedures and annual reviews, in place to ensure
GCSS-Army compliance with Treasury and DOD guidance,” the IG report concludes.
“Although Army personnel have been responsive to correcting
deficiencies identified during the audit, the Army has spent $725.7
million on a system that still has significant obstacles to overcome” to
comply with federal financial reporting laws.
Among the shortfalls in the Army’s accounting system were
discrepancies in reported debits and credits, which would understate the
amount spent and overstate the amount still available for the project,
according to the IG.
Other improper accounting procedures might have made it difficult to spot abnormal balances." via Lucianne