Auditability in public procurement: an analysis of internal controls and fraud vulnerability

Rendon, Rene G.; Rendon, Juanita M.

doi:10.1504/ijpm.2015.072388

Cited by 20 publications

(24 citation statements)

References 20 publications

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“…Hence, the DOD desires to improve the function of a competent procurement workforce, capable procurement processes, and effective internal controls to achieve its contract management goals and objectives (Rendon & Rendon, 2015). The three aspects of auditability are discussed in the following subsection.…”

Section: Auditability Theorymentioning

confidence: 99%

“…It encompasses the education, training, and experience requirements of team members for each function in the organization (Rendon & Rendon, 2015). The Defense Acquisition Workforce Improvement Act (DAWIA)…”

Section: Competent Peoplementioning

confidence: 99%

“…The internal controls aspect regarding auditability relates to implementing effective internal controls in organizations in order to ensure compliance with laws and regulations, ensure activities are monitored, and ensure material weaknesses are reported (Rendon & Rendon, 2015). Internal controls are typically discussed in regards to the five internal control components established by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).…”

Section: Effective Internal Controlsmentioning

confidence: 99%

“…The DOD still lacks auditability in contract management that ensures integrity, accountability, and transparency. Auditability is highly dependent on competent people, capable processes, and effective internal controls (Rendon & Rendon, 2015). According to the DODIG (2009), many of the deficiencies in the DOD acquisition and contract management processes are a result of material internal control weaknesses.…”

Section: This Page Intentionally Left Blank Introduction a Backgrmentioning

confidence: 99%

“…In order to reduce weaknesses and ensure auditability in contract management, the DOD needs to have effective internal controls (Rendon & Rendon, 2015).…”

Section: This Page Intentionally Left Blank Introduction a Backgrmentioning

confidence: 99%

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An Analysis of Internal Controls for DoD Contract Management

Hidaka¹,

Owen²

2015

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Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for reviewing instruction, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to ABSTRACT (maximum 200 words)According to a 2010 report, the Department of Defense (DOD) spends over $300 billion each year on contracts to sustain the organization as an operational military force. Since 1992, the Government Accountability Office (GAO) has identified contract management within the DOD as an area for high risk in fraud, waste, abuse, and mismanagement, and the DOD has not provided enough assurance that they are using sound practices in procurement. Failures to meet objectives in cost, schedule, and performance have led to cost overruns, reduced buying power, and a reduction in capabilities throughout contract administration processes.The purpose of this research was to assess internal controls within the DOD contract management processes. This assessment was conducted by analyzing reports from the DOD Inspector General, which noted deficiencies in the contract management processes and weaknesses in the internal control framework. The results of this analysis indicate that, overall, the highest numbers of deficiencies in the DOD were found in Procurement Planning, Solicitation Planning, and Contract Administration. In addition, overall, the highest numbers of weaknesses were found in Contract Environment, Contract Activities, and Risk Assessment. This research may help the DOD address identified problems within internal controls and contract management processes. SUBJECT TERMS AN ANALYSIS OF INTERNAL CONTROLS FOR DOD CONTRACT MANAGEMENT ABSTRACTAccording to a 2010 report, the Department of Defense (DOD) spends over $300 billion each year on contracts to sustain the organization as an operational military force.Since 1992, the Government Accountability Office (GAO) has identified contract management within the DOD as an area for high risk in fraud, waste, abuse, and mismanagement, and the DOD has not provided enough assurance that they are using sound practices in procurement. Failures to meet objectives in cost, schedule, and performance have led to cost overruns, reduced buying power, and a reduction in capabilities throughout contract administration processes.

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Section: Auditability Theorymentioning

confidence: 99%

Section: Competent Peoplementioning

confidence: 99%

Section: Effective Internal Controlsmentioning

confidence: 99%

Section: This Page Intentionally Left Blank Introduction a Backgrmentioning

confidence: 99%

“…In order to reduce weaknesses and ensure auditability in contract management, the DOD needs to have effective internal controls (Rendon & Rendon, 2015).…”

Section: This Page Intentionally Left Blank Introduction a Backgrmentioning

confidence: 99%

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