Fees and Surcharges Assessed on Afghanistan Security Forces Fund Orders Need Improved Cost Accounting

The U.S. Army Corps of Engineers and the
Air Force Center for Engineering and the
Environment generally had appropriate cost
accounting procedures; however, the Defense
Security Cooperation Agency (DSCA) did not
maintain adequate costaccounting records that
showed whether three surcharge rates represented
reasonable estimates of actual costs on Foreign
Military Sales cases funded by ASFF
appropriations (ASFF cases). Specifically,
DSCA collected the following surcharges:
 Administrative: over $848 million from
cases funded by FY 2005 through FY 2011
ASFF appropriations, but its cost records did
not support the surcharge rate.
 Contract administration services (CAS): an
unknown amount and it could not compare
actual expenses to surcharges collected.
 Transportation expense: an unknown amount
and it could not identify the expenses for each
ASFF case