Department of the Air Force's Construction of the Afghan Ministry of Defense Headquarters Facility: Audit of Costs Incurred by Gilbane Federal
Abstract
On April 21, 2009, the 772nd Enterprise Sourcing Squadron, in support of the Air Force Center for Engineering and the Environment, issued a cost-plus-fixed-feet ask order for $48,739,238 to Innovative Technical Solutions Inc. (ITSI) to build the Afghan Ministry of Defense's headquarters facility. After 14 modifications, the task order's funding increased to $107,343,542, and the period of performance was extended from October 11, 2011, to December 30, 2014. In 2010, Gilbane Federal (Gilbane) acquired ITSI, and in 2012, the Air Force Center for Engineering and the Environment reorganized into the Air Force Civil Engineer Center. SIGAR's financial audit, performed by Crowe LLP (Crowe), reviewed $5,880,740 charged to the task order from November 30, 2013, through December 30, 2014. The objectives of the audit were to (1) identify and report on material weaknesses or significant deficiencies in Gilbane's internal controls related to the task order; (2) identify and report on instances of material non compliance with the terms of the task order and applicable laws and regulations, including any potential fraud or abuse; (3) determine and report on whether Gilbane has taken corrective action on prior findings and recommendations; and (4) express an opinion on the fair presentation of Gilbanes Special Purpose Financial Statement (SPFS). See Crowe's report for the precise audit objectives. In contracting with an independent audit firm and drawing from the results of the audit, SIGAR is required by auditing standards to review the audit work performed. Accordingly, SIGAR oversaw the audit and reviewed its results. Our review disclosed no instances where Crowe did not comply, in all material respects, with U.S. generally accepted government auditing standards.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 2018
- Accession Number
- AD1138345
Entities
People
- John Sopko
Organizations
- Special Inspector General for Afghanistan Reconstruction