Golden Fleece Awared To Defense Logistics Agency for Failure to Complete Audit

The Golden Fleece Award

ARRA News Service: Congressman French Hill (R-AR) has 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 congressional mandated audit for the second year in a row.

“Not once, but twice the DLA failed to complete a congressional 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.”

In the letter to the Administrator of Centers for Medicare & Medicaid Services Seema Verma, Congressman Hill wrote:
November 1, 2010

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 CongressAbout the Golden Fleece Award
Every year, Congress appropriates trillions of dollars to fund the federal government, and every year the federal government wastes portions of these funds in unconscionable ways. As a Member of Congress, and as a taxpayer, this frustrates me to no end. In an attempt to increase accountability for every single government program, Congressman Hill decided to bring back the Golden Fleece Award.

Originally introduced by Democratic U.S. Senator from Wisconsin William Proxmire in March 1975, the Golden Fleece Award was a monthly bulletin on the most frivolous and wasteful uses of hardworking taxpayers’ dollars. The Golden Fleece Award became a staple in the U.S. Senate during this time, and Senator Robert Byrd once stated that the awards were “as much a part of the Senate as quorum calls and filibusters.”

In reviving this idea, the Golden Fleece Award will again have the opportunity to serve as an important reminder to taxpayers about the need for necessary, commonsense reforms to our federal spending.

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