Improper Obligations Using the Iraq Relief and Reconstruction Fund (IRRF 2)

Abstract

Congress appropriated $18.4 billion for the rebuilding of Iraq in Public Law 108-106, the Emergency Supplemental Appropriations Act for Defense and for the Reconstruction of Iraq and Afghanistan. This money is known as the Iraq Relief and Reconstruction Fund 2 (IRRF 2).1 On September 22, 2006, we issued an interim audit report on improper obligations using IRRF 2.2 As a result of our interim findings, and as agreed to with senior U.S. Army Corps of Engineers officials, we further report on the circumstances related to these questionable funds and subsequent actions taken or planned by GRD regarding the use of these funds. This is our final report. In our September 2006 interim report, we concluded that $362 million in obligations did not constitute proper obligations. These funds were recorded as obligations by the U.S. Army Corps of Engineers (USACE) Gulf Region Division (GRD)3 in USACE's financial records under a general contingency account used to enter data into a data field for vendors when no specific vendor entity existed. Because we concluded that the obligation of funds from IRRF 2 must be made for bona fide purposes prior to their expiration on September 30, 2006, we issued an interim audit report so timely action could be taken by USACE on the use of these funds. In providing official oral comments on our interim findings, the USACE Chief Financial Officer (CFO) agreed with our conclusion that the $362 million in IRRF 2 funds that were obligated to non-existent vendors were not proper obligations. He advised us that USACE was seeking a solution to meet its needs to fund future contingency and close-out costs in a manner that constitutes proper obligations. In further discussions with USACE s GRD staff in Iraq we were told that GRD had been previously advised that it could obligate IRRF 2 funds for contingencies to this general account.

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Document Details

Document Type
Technical Report
Publication Date
Jan 30, 2007
Accession Number
ADA461563

Entities

Organizations

  • Special Inspector General for Iraq Reconstruction

Tags

Communities of Interest

  • Biomedical
  • Human Systems

DTIC Thesaurus Topics

  • Army Budgets
  • Army Corps Of Engineers
  • Business Administration
  • Congress
  • Contracts
  • Department Of Defense
  • Department Of State
  • Financial Management
  • Governments
  • Law
  • Management Personnel
  • Money
  • National Security
  • Procurement
  • Resource Management
  • United States
  • United States Government

Readers

  • Defense Financial Management and Audit.
  • Military and Counterinsurgency Studies.
  • Public Financial Management and Budgeting