Report - United States Department of Defense

UNCLASSIFIED
2.13: BUDGET
Afghanistan Security Forces Fund
The Afghanistan Security Forces Fund (ASFF) provides the resources required to train, sustain,
and equip a 352,000-person ANSF and 30,000-person ALP. For FY 2012, Congress appropriated
$11.2B for ASFF. An additional $2B of FY 2012 funding was subsequently identified for
transfer to other DoD priorities through omnibus reprogramming actions, leaving $9.2B as the
FY 2012 budget authority. For FY 2013 Congress appropriated $5.1B. The FY 2013 request of
$5.75B reflected a shift as emphasis moves from building, equipping, and training to
professionalizing and sustaining the force. Exceptions included some equipping and
infrastructure requirements for the Afghan Air Forces and Special Operations Forces as they
continue to build their capabilities.
International Community Funding for the ANSF
The international community also provides funding for ANSF through the NATO ANA Trust
Fund and the Law and Order Trust Fund for Afghanistan (LOTFA). NTM-A, acting through
DoD comptroller, executes the NATO ANA Trust Fund, which is for support and sustainment of
the ANA. Twenty-three nations have contributed more than $700M over the life of the ANA
Trust Fund fund.
The United Nations Development Program (UNDP) administers LOTFA to fund police salaries
and build the capacity of the MoI. Between 2002 and 2012, the United States donated roughly
$1.0B to LOTFA, while the rest of the international community has committed more than
$1.75B.
A team from the UN Office of Audit and Investigation (OAI) conducted an investigation into the
allegations of misuse of funds and corruption at LOTFA. The allegations were contained within
the small administrative budget managed by LOTFA. On February 1, 2013, the OAI issued their
report and the allegations were substantiated. The investigation found procurement irregularities
and travel fraud estimated at more than $1M, limited to a few individuals that were placed on
administrative leave or dismissed. The UNDP management response identifies additional
control measures underway to mitigate the risk and reassure donors.
Given the recommendations in the management review and the need for additional discussions
with all stakeholders, and in particular the need to be coordinated with the strategic initiatives
being led by the IPCB, UNDP recommends that the current phase of LOTFA be extended for an
additional nine months beyond its current expiration date of March 31, 2013.
NTM-A will continue to engage LOTFA to provide reasonable assurance that direct
contributions are accounted for in a transparent and auditable manner.
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