U.S. Department of the Air Forces Support for the Afghan Air Forces C-130H Airlift Capability: Audit of Costs Incurred by AAR Government Services Inc.
[Technical Report, Inspector General Audit]
SPECIAL INSPECTOR GENERAL FOR AFGHANISTAN RECONSTRUCTION ARLINGTON VA
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On June 5, 2017, the U.S. Department of the Air Forces Life Cycle Management Center awarded AAR Supply Chain Inc. AAR a task order in support of the Afghan Air Forces C-130H airlift operational capabilities. The objectives of the task order were to support and sustain up to four C-130H aircraft in Kabul, Afghanistan, and provide on-call support at other locations in Afghanistan. The task order included 12,425,998 in cost-reimbursable items and 10,847,508 in firm-fixed-price line items for a total of 23,273,506. The task order was modified three times, with no change to total funding or the period of performance, which began on July 30, 2017, and ended on July 29, 2018. On January 8, 2019, the task order recognized a change in AARs name from AAR Supply Chain Inc. to AAR Government Services Inc. SIGARs financial audit, performed by Crowe LLP Crowe, reviewed 5,689,922 in reimbursable costs within the period from July 30, 2017, through July 29, 2018. The objectives of the audit were to 1 identify and report on material weaknesses or significant deficiencies in AARs internal controls related to the task order 2 identify and report on instances of material noncompliance with the terms of the task order and applicable laws and regulations, including any potential fraud or abuse 3 determine and report on whether AAR has taken corrective action on prior findings and recommendations and 4 express an opinion on the fair presentation of AARs Special Purpose Financial Statement SPFS. See Crowes report for the precise audit objectives. In contracting with an independent audit firm and drawing from the results of the audit, auditing standards require SIGAR to review the audit work performed. Accordingly, SIGAR oversaw the audit and reviewed its results. Our review disclosed no instances wherein Crowe did not comply, in all material respects, with U.S. generally accepted government auditing standards.
- Logistics, Military Facilities and Supplies
- Economics and Cost Analysis
- Administration and Management