Acquisitions: Although Weaknesses Still Exist, the Treasury Franchise Fund Improved Compliance with DOD Procurement Requirements

摘要

This report presents the results of our second audit of the Department of the Treasury's compliance with applicable laws and regulations for procurements made on behalf of the Department of Defense (DOD) through the Treasury franchise fund. Our second audit focused on fiscal year 2006 procurements. Both this audit and the prior one were conducted in coordination with the DOD Office of Inspector General (OIG). The audits were mandated by the National Defense Authorization Act (NDAA) for Fiscal Year 2006. For this audit, we were again charged with determining whether Treasury was compliant with applicable requirements for procurements made on behalf of DOD. A determination of noncompliance would have significant implications for the Treasury franchise fund as DOD would be required to significantly curtail its use of Treasury for procurements. That said, it should also be noted that effective April 2007, responsibility for program direction and oversight of FedSource, the component of the Treasury franchise fund that directly serviced DOD, was transferred from the Treasury Deputy Chief Financial Officer to the Bureau of the Public Debt (BPD). BPD is to complete a controlled and orderly transition out of the FedSource business no later than September 30, 2008. BPD is to implement this transition in a manner that minimizes disruption to FedSource customers, employees, and vendors.