Photo By Corinna Baltos | The members of U.S. Army Sustainment Command’s Internal Review and Audit Compliance...... read more read more
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ROCK ISLAND ARSENAL, Ill. – Did you know that the Army gets audited? Well, they do, and it’s for the same reason any large organization might - to ensure accountability and transparency, to improve operations and to account for the use of taxpayer money.
At the U.S. Army Sustainment Command, the Internal Review and Audit Compliance Office plays a critical role in ensuring financial and operational accountability. The IRACO serves as the principal advisory office to the commanding general and his staff, overseeing all audit-related matters.
“We handle all audit functions for ASC. Not just here at ASC headquarters, but for everyone under the ASC footprint,” said Greg Collins, chief of ASC’s IRACO. Collins heads a staff of four auditors.
While headquartered at Rock Island Arsenal, Illinois, ASC has a worldwide presence in more than 20 countries and 32 states, and employs thousands of Soldiers, Civilians and contractors. ASC is the primary provider of logistics support to the U.S. Army.
“The purpose of an audit is to look at internal control programs in order to improve the process,” said Kpakpo Hounzouke-Akue, an auditor with ASC’s IRACO.
Services provided by IRACO may include but are not limited to performance audits (including follow-up audits), certifying engagements, internal control testing, investigative services, validation of corrective action plans, independent evaluation of the commander’s Annual Statement of Assurance, non-audit services, and liaison for external government audit entities and Independent Public Accounts responsible for auditing the Army’s financial statements.
While internal audits are broad and strategic in nature, compliance audits are focused and narrow. It asks, “Are you following the rules?” It checks whether specific laws, regulations, contracts or internal policies are being followed. Compliance audits can be separate or part of an internal audit, depending on the context.
Internal reviews are conducted at the request of the commanding general and are designed to assess risk and provide reasonable assurance that internal controls or processes are functioning efficiently and effectively.
The purpose of these reviews is to detect issues early, provide recommendations for corrective actions and assurance for leaders.
Early detection of issues helps commanders enhance operational readiness and compliance by quickly identifying errors in accounting or financial records, process breakdowns, signs of fraud, waste or abuse, or policy violations.
They also provide leadership with real-time insight into whether their people, systems and processes are working as intended. This improves efficiency by identifying ways to save money, time, and effort by streamlining or eliminating redundant procedures.
Internal reviews are one of the most effective tools commanders can use to ensure they are providing the best stewardship of the resources entrusted to them because it determines whether incurred or proposed costs follow laws, regulations or contract or grant agreements. Or put more simply, “This is the outcome that is supposed to be achieved, did you do that?” said Collins.
One of the most common types of compliance audits at ASC are what is known as “book to floor, floor to book audit”.
“We look at your books,” said Collins. “Say you are supposed to have 100 of a particular item. We will go out and count it. If it says 100 on the books, we expect to count 100 items. If there are more or less, you must show us when the discrepancy occurred and why. If the discrepancy is an error, we expect causative research to rectify it. If your books aren’t right, that is a problem. You can’t change the books. We are here to keep everyone honest.”
While this type of audit is usually for compliance, it can also be a tool within an internal audit. For example, if ASC was conducting an internal audit on a unit supply room to verify that the unit’s management practices are secure and effective, one of the auditors might perform a book to floor audit to verify that the Soldiers are following accountability procedures by properly receiving, ordering, issuing and disposing of equipment.
Internal audits are a force multiplier for readiness, it verifies that equipment is accounted for, serviceable and in the right place. Without regular examinations a unit may look “ready” on paper, but in reality, be unable to fight, deploy and sustain the fight when it counts.
One of the most important aspects of an internal or compliance audit is it prepares the command for external audits.
The IRACO’s function during this is to coordinate, manage and support activities between external auditors and ASC subject matter experts and its subordinate commands and tenant organizations.
ASC gets audited by three external organizations: the Government Accountability Office, the Department of Defense Inspector General and the Army Audit Agency.
There are many reasons for this, ranging from management referrals, agencies’ performance issues, congressional requests, or results from a significant risk assessment.
As the liaison between the auditors and the auditee, the IRACO provides continuous support to the offices throughout all phases of the process, from the initial announcement through the closeout of implemented recommendations.
“We set up the meetings and make sure the auditor gets to the right SME,” said Collins, who also noted his office monitors the meetings between ASC and the auditing agency. Once the external agency finishes the audit the report is sent to Collins’ office, who reads the report and works with the audited section to answer the recommendation.
As part of its duties, the IRACO keeps the audit organized and efficient by ensuring the auditors speak to the right people, view the proper records and see the full picture which allows for more accurate results. They also protect ASC by ensuring there is no miscommunication between the auditors and the command, making sure all deadlines are met, and submissions are correct. When problems are identified by the auditing agency, IRACO ensures the findings are understood and corrective actions are put into place.
ASC routinely gets audited to ensure strong resource accountability, which ensures the command is more likely to have the right gear, on time and in good condition for the warfighters. Audits also ensure the command is spending its money legally and efficiently which means there is more money for training and readiness.
| Date Taken: | 04.24.2025 |
| Date Posted: | 04.24.2025 16:38 |
| Story ID: | 496132 |
| Location: | ROCK ISLAND ARSENAL, ILLINOIS, US |
| Web Views: | 36 |
| Downloads: | 0 |
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