Runway Renovation at Shindand Air Base: Audit of Costs Incurred by PRI/DJI, A Construction JV Results in Nearly $5 Million in Questioned Costs
Abstract
On March 26, 2010, the Air Force Center for Engineering and the Environmentreorganized in 2012 as the Air Force Civil Engineer Centerawarded a 21-month, $34.2 million cost plus fixed fee task order to PRI/DJI, A Construction JV (PRI/DJI). The joint venture is comprised ofProject Resources, Inc. and Del-Jen, Inc. The purpose of the task order was to renovate the runway at Shindand Air Base in Herat province,Afghanistan. After nine modifications to the task order, the total award amount increased to $35.8 million, and the period of performance was extended to February 29, 2012. SIGARs financial audit, performed by Crowe Horwath LLP (Crowe), reviewed $35,869,185 in expenditures charged to the task order from March 26, 2010, through February 29, 2012. The objectives of the audit were to (1) identify and report on significant deficiencies or material weaknesses in PRI/DJIs internal controls related to the task order; (2) identify and report on instances of material noncompliance with the terms of the task order and applicable laws and regulations, including any potential fraud or abuse; (3)determine and report on whether PRI/DJI has taken corrective action on prior findings and recommendations; and (4) express an opinion on the fair presentation of PRI/DJIs Special Purpose Financial Statement (SPFS). See Crowes 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
- Aug 01, 2016
- Accession Number
- AD1139949
Entities
People
- John Sopko
Organizations
- Special Inspector General for Afghanistan Reconstruction