OIG found that DS did not effectively administer the armored vehicle program in accordance with Department policies and guidelines, because DS had not developed appropriate procedures, guidance, or processes. As a result, the armored vehicle program continues to be at significant risk for fraud, waste, and abuse.
OIG also found that DS did not allocate armored vehicles to meet posts’ needs because of a lack of oversight of the process. As a result, overseas posts requiring armored vehicles have not been provided the appropriate number. Additionally, OIG determined that DS had incurred an impairment loss of $24.9 million for 259 armored vehicles that were unused for over one year. OIG also found that, to reduce inventory, DS transferred 200 unused armored vehicles, valued at $26.4 million, to other U.S. Government agencies without cost reimbursement. OIG questions the $51.3 million associated with these issues.
In addition, DS did not maintain sufficient accountability over armored vehicles stored domestically because of a lack of policies and procedures. As a result, OIG could not locate five vehicles, valued at $536,159.