|US Department of the Navy
Navy Sea Systems Command (NAVSEA) and Navy Air Systems Command (NAVAIR)
Review of Unliquidated
|Period of Performance:
September 2005 – June
|Contract Number &
Time & Material
||The largest of the Navy's five systems commands, Naval
Sea Systems Command (NAVSEA) engineers, builds
and supports America's fleet of ships and combat
systems. Accounting for nearly one-fifth of the Navy's
budget (approximately $20 billion), NAVSEA manages
more than 130 acquisition programs, which are assigned
to six affiliated Program Executive Officers (PEOs) and
various Headquarters elements.
Navy Air Systems Command (NAVAIR) provides
cost-wise readiness and dominant maritime combat
power to make a great Navy/Marine Corps team better.
|Daniel Eke and Associates, as sub-contractor to Urbach, Kahn, and Werlin, was engaged
by the Naval Audit Service to evaluate the funds management process that NAVAIR and
NAVSEA use to validate unliquidated obligations (ULO) which exceeded requirements.
Major tasks included interviewing Budget Analysts and Financial Analysts from various
programs and from the NAVSEA & NAVAIR Comptroller Directorates, gathering
background information related to NAVSEA & NAVAIR and the funds management process
within NAVSEA & NAVAIR, obtaining and reviewing applicable guidance per the Statement
of Work and preparing summary memorandums. We documented our understanding,
obtained a download from Navy STARS program of open obligations and reconciled
obligated amounts to the DFAS trial balance. We designed a sample for validating ULO
balances, and obtained funding documents, document history reports, and the STARS
document status inquiries for each sampled item. Prepared a memorandum to document
the amount of available funding and its validity.
This engagement resulted in the de-obligation and re-programming of millions of dollars
worth of NAVSEA and NAVAIR unsupported obligations.