Department of Defense Task Force for Business and Stability Operations' Afghanistan Indigenous Industries Program: Audit of Costs Incurred by DAI Global LLC

Abstract

On May 7, 2014, the Department of Interior's Interior Business Center awarded a $2,111,345 task order to Development Alternatives Inc., now DAI Global LLC (DAI), on behalf of the Department of Defense's Task Force for Business and Stability Operations (TFBSO). The task order was intended to support TFBSO's Afghanistan Indigenous Industries program, which was designed to link indigenous industries to international markets to support the growth of the licit economy in Afghanistan. This task order required that the contractor provide a weaving trainer to teach Afghan rug makers to produce rugs using the "Nepalese weave." After two modifications, the task order's ceiling increased to $2,266,320, but the 6-month period of performance that ended on November 6, 2014, did not change. SIGAR's financial audit, performed by Williams Adley and Company-DC LLP (Williams Adley), reviewed $902,556 in expenditures charged to the task order from May 7, 2014, through November 6, 2014. The objectives of the audit were to (1) identify and report on significant deficiencies or material weaknesses in DAI's internal controls related to the cooperative agreement; (2) identify and report on instances of material noncompliance with the terms of the cooperative agreement and applicable laws and regulations, including any potential fraud or abuse; (3) determine and report on whether DAI has taken corrective action on prior findings and recommendations; and (4) express an opinion on the fair presentation of DAI's Special Purpose Financial Statement (SPFS). See Williams Adley'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 Williams Adley did not comply, in all material respects, with U.S. generally accepted government auditing standards.

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Document Details

Document Type
Technical Report
Publication Date
Oct 01, 2017
Accession Number
AD1139777

Entities

People

  • John Sopko

Organizations

  • Special Inspector General for Afghanistan Reconstruction

Tags

Communities of Interest

  • Human Systems

DTIC Thesaurus Topics

  • Accounting
  • Afghanistan
  • Auditing
  • Commerce
  • Contractors
  • Contracts
  • Department Of Defense
  • Governments
  • Law
  • Materials
  • Money
  • Procurement
  • Risk
  • Risk Analysis
  • Stability Operations
  • Task Forces
  • United States

Fields of Study

  • Business

Readers

  • Defense Financial Management and Audit.
  • Economics