Department of the Army's Legacy East Project: Jorge Scientific Corporation's Lack of Supporting Documentation Results in about $135 Million in Questionable Project Costs
Abstract
On October 21, 2011, the Army Contracting command awarded a $50 million contract to Jorge Scientific corporation (Jorge Scientific}-nowreorganized and rebranded under lmperatis Corporation-to implement the Legacy East project The purpose of the project was to provide highly specialized counterinsurgency intelligence experts to mentor and train Afghan National Security Forces. The project also provided for hiring bilingual cultural advisors and developing Afghanistan-specific instruction in counterinsurgency operations to strengthen Afghanistan's capacity to combat terrorist and insurgent networks. After subsequent modifications, the total estimated cost of the contract was increased to $191,135,945, though the actual contract expenditures were approximately $15 million less than that estimated cost. SIGAR's financial audit, performed by Crowe Horwath LLP (Crowe Horwath) reviewed $175,873,361 in expenditures charged to the contract from October 21, 2011. through March 15, 2014. The objectives of the audit were to (1) identify and report on significant deficiencies or material weaknesses in JorgeScientific's 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 Jorge Scientific has taken corrective action on prior findings and recommendations; and (4) express an opinion on the fair presentation of Jorge Scientific's Special Purpose Financial Statement See Crowe Horwath's report for the precise audit objectives. In contracting with an independent audit firm anddrawing from the results of the audit. SIGAR is required by auditing standards to review the audit work performed. Accordingly, we oversaw the audit and reviewed its results.
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 01, 2015
- Accession Number
- AD1140138
Entities
People
- John Sopko
Organizations
- Special Inspector General for Afghanistan Reconstruction