Pentagon Can't Account... 

The U.S. Defense Department is unable to account for usd $8.7 billion of the $9.1 billion in Development Fund for Iraq (DFI) monies it received for reconstruction work in that Arab country, Federal News Radio reported on Tuesday.

This according to a study published today by the Special Inspector General for Iraq Reconstruction, the FNR highlighted.

This situation occurs because most Pentagon organizations receiving DFI mondis did not establish the required Department of the Treasury accounts.

Also because no Department of Defense organization was designated as the executive agent for managing the use of the DFI funds, the report states.

The Special Inspector General for Iraq Reconstruction (SIGIR) found that only one Defense organization actually set up the accounts required by the Treasury.

SIGIR stressed that the breakdown in controls left the funds vulnerable to inappropriate uses and undetected loss.

The study recommends that the Secretary of Defense create new accounting and reporting procedures to avoid such mistakes in the future.

It also recommends designating an executive agent to oversee progress, establishing measurable milestones, and determining whether any Pentagon organizations are still holding DFI funds.

Source: PL