A damning outside review finds that the Defense Logistics Agency has lost track of where it spent the money Politico report published February 05, 2018.
Ernst & Young found that the Defense Logistics Agency failed to properly document more than $800 million in construction projects, just one of a series of examples where it lacks a paper trail for millions of dollars in property and equipment.
Below, OMS Consulting Group summarized three major takeaways from this publication:
One: For construction projects designated as still “in progress,” meanwhile, it didn't have sufficient documentation — or any documentation at all — for another $384 million worth of spending.
Two: The agency also couldn't produce supporting evidence for many items that are documented in some form — including records for $100 million worth of assets in the computer systems that conduct the agency’s day-to-day business.
Three: Norquist said it will cost an estimated $367 million to carry out the audits — including the cost of hiring independent accounting firms like Ernst & Young — and an additional $551 million to go back and fix broken accounting systems that are crucial to better financial management.