Department of Defense's Energy Support Services Program: Audit of Costs Incurred by Zantech IT Services, Inc.

Abstract

On December 14, 2010, the Department of the Interior, on behalf of the Department of Defense, awarded a 1-year, $4 million contract to Zantech IT Services, Inc. (Zantech) to support the Task Force for Business and Stability Operations (TFBSO) Energy Support Services program. The program was intended to support TFBSOs energy programs by creating efficient, low-cost, and economically viable energy development opportunities for Afghanistan. After 19 modifications, the total cost of the contract was increased to $17.8 million, and the period of performance was extended to September 27, 2012. SIGARs financial audit, performed by Williams, Adley and Company-DC, LLP (Williams Adley), reviewed $17,793,003 in expenditures charged to the contract from December 14, 2010, through September 27, 2012. The objectives of the audit were to (1) identify and report on significant deficiencies or material weaknesses in Zantechs internal controls related to the contract; (2) identify and report on instances of material noncompliance with the terms of the contract and applicable laws and regulations, including any potential fraud or abuse; (3) determine and report on whether Zantech has taken corrective action on prior findings and recommendations; and (4) express an opinion on the fair presentation of Zantechs Special Purpose Financial Statement. See Williams Adleys 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
Jan 01, 2016
Accession Number
AD1140111

Entities

People

  • John Sopko

Organizations

  • Special Inspector General for Afghanistan Reconstruction

Tags

Communities of Interest

  • Energy and Power Technologies

DTIC Thesaurus Topics

  • Accounting
  • Acquisition
  • Auditing
  • Business Administration
  • Commerce
  • Contractors
  • Contracts
  • Department Of Defense
  • Governments
  • Indirect Costs
  • Law
  • Money
  • Procurement
  • Stability Operations
  • Standards
  • Task Forces
  • United States

Readers

  • Facility/Structural Engineering.
  • Military and Counterinsurgency Studies.
  • Naval Engineering and Maritime Security