Download or read book Audit of Department of Defense Use of Security Assistance Funds and Asset Accountability written by United States. Department of Defense. Office of the Inspector General and published by . This book was released on 2020 with total page 63 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Arms Export Control Act and the Foreign Assistance Act authorize the U.S. Government to provide security assistance to foreign customers in the form of defense articles, military education and training, and other defense-related services to advance national policies and objectives. The Defense Security Cooperation Agency is the DoD agency responsible for directing, administering, and providing guidance for the management of the DoD-executed security assistance programs. The Military Departments and Defense agencies are responsible for daily operational management and decision making for the security assistance programs. The Arms Export Control Act and the DoD Financial Management Regulation require the DoD to recover its costs for providing support to foreign customers. The DoD charges administrative fees to the customer on the articles and services provided to cover the DoD’s overhead costs. The DoD collects the fees in the Foreign Military Sales Trust Fund administrative account and uses the account funds to reimburse the DoD Components for their overhead costs, such as salaries and maintenance costs. We determined that the DoD Components did not recover their costs for executing security assistance programs in accordance with the Arms Export Control Act and the DoD Financial Management Regulation. Specifically, the DoD Components did not recover their costs for: paying DoD civilians to work on the security assistance programs ; storing security assistance assets at DoD facilities ; or maintaining DoD facilities used to execute security assistance programs. These conditions occurred because the DoD Components did not design or implement a reliable cost accounting method to track their actual costs incurred for executing the security assistance programs. Additionally, DoD Components did not always request reimbursement for their expenses from the Defense Security Cooperation Agency.