Hill Awards Golden Fleece to DoD’s Defense Logistics Agency for Failure to Complete Audit
Washington,
November 1, 2018
WASHINGTON – Congressman French Hill (R-AR) named the U.S. Department of Defense’s (DoD) Defense Logistics Agency (DLA) as the latest winner of the Golden Fleece award for failing to complete a congressionally mandated audit for the second year in a row. “Not once, but twice the DLA failed to complete a congressionally mandated audit,” said Hill. “This is absolutely unacceptable. Audits are essential to ensure that agencies are being efficient and cost-effective with hardworking taxpayer dollars. I call on the DLA to take seriously congressional mandates that are vital to a healthy, functioning agency.” Lieutenant General Darrell K. Williams, USA Director Defense Logistics Agency 8725 John J. Kingman Rd Andrew T. McNamara Building Fort Belvoir, VA 22060-6217 Dear General Williams: I write today to inform you that your agency is this month’s recipient of my Golden Fleece Award. I am awarding this to the U.S. Department of Defense’s (DOD) Defense Logistics Agency (DLA) for failing to complete an independent audit for the second year in a row. As detailed in a 2017 report by independent public accountant (IPA) Ernst and Young (EY), EY could not “…obtain sufficient, competent evidential matter to support…” an IPA audit report and was unable to complete the Congressionally-mandated audit. Some of the more concerning aspects of the report include improper documentation for $100 million in internal use software assets, such as CRM tools and payroll systems, and nearly $850 million in construction projects that cannot be corroborated because of insufficient financial documentation and misstatements within those documents that were available. Furthermore, according to the September/October 2018 edition of DLA’s newsletter, DLA has not “…[completed] or …[implemented] its Corrective Action Plans (CAPs) for the material weaknesses identified during the fiscal year (FY) 2017 financial statement audits,” preventing EY from providing an audit opinion for FY 2018. DLA employs 27,000 people and managed over $35 billion in goods and services last year. The notice in the DLA newsletter marks the second “disclaimer of opinion”, in lieu of a full audit opinion, from the IPA for the DLA in two years. In 2017, auditors were unable to complete their review because of a lack of supporting documentation that hindered their ability to verify the information on DLA’s financial statements. It is baffling to see an incomplete review for near-identical reasons for a second year. Our federal agencies must be good stewards of our federal taxpayer dollars, and I am committed to ensuring effective practices at our Nation’s federal agencies. Should you require any additional authority from Congress to address these concerns, I urge you to notify us as soon as possible. I thank you for your consideration, and I look forward to working with you to address this important issue. Sincerely, French Hill Member of Congress |
