{"id":67763,"date":"2018-03-07T21:03:38","date_gmt":"2018-03-07T21:03:38","guid":{"rendered":"https:\/\/one.sightlinemg.com\/militarytimes\/uncategorized\/2018\/03\/07\/ig-pentagon-failed-to-address-financial-problems-of-armed-forces-retirement-home-2\/"},"modified":"2026-08-08T07:20:02","modified_gmt":"2026-08-08T07:20:02","slug":"ig-pentagon-failed-to-address-financial-problems-of-armed-forces-retirement-home-2","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/militarytimes\/management\/pay-benefits\/2018\/03\/07\/ig-pentagon-failed-to-address-financial-problems-of-armed-forces-retirement-home-2\/","title":{"rendered":"IG: Pentagon failed to address financial problems of Armed Forces Retirement Home"},"content":{"rendered":"\n

The Defense Department and former Armed Forces Retirement Home<\/a> officials failed to conduct financial oversight of the home, contributing to the sharp decline in its finances, a DoD Inspector General report has confirmed.<\/p>\n\n\n\n

The report, issued in February, echoes concerns of defense officials,<\/a> who have taken steps over the last year to shore up the oversight <\/a>and viability of the agency\u2019s two homes \u2015 including firing the previous boss. With campuses in Washington and Gulfport, Mississippi, the homes care for about 1,000 former enlisted members.<\/p>\n\n\n\n

Auditors found that DoD and AFRH officials allowed the AFRH trust fund to decline from $186.5 million in fiscal 2010 to $55 million in fiscal 2016. It would have declined even more in 2016 if $20 million in taxpayer dollars hadn\u2019t been transferred into the fund. For at least the near future, the agency will need an annual infusion of at least $20 million in taxpayer dollars to meet its operating expenses.<\/p>\n\n\n\n

Part of the revenue comes from the residents\u2019 fees and from a 50-cents-a-month mandatory deduction from the paycheck of active-duty enlisted, warrant officers and limited duty officers. Among the IG\u2019s recommendations was to increase that monthly active-duty paycheck deduction to $1.<\/p>\n\n\n\n

That move, apparently, would come as a last resort: In response to the IG\u2019s recommendation, DoD\u2019s deputy chief management officer stated that the deduction will stay the same unless a long-term fix using other revenue methods can\u2019t be found.<\/p>\n\n\n\n

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Students from Creative Minds International Public Charter School visit their new home on the campus of the Armed Forces Retirement Home in Washington, D.C., in 2015. The U.S. Army Corps of Engineers signed a 10-year grant with CMI. (Photo Credit: David Gray)<\/figcaption><\/figure>\n\n\n\n

The AFRH is working on a new strategic plan, expected to be completed by July 1, according to the report.<\/p>\n\n\n\n

The IG report disputed the DoD statement from Stephanie Barna, acting secretary of defense for manpower and reserve affairs, that the AFRH didn\u2019t bring the funding crisis to the attention of DoD officials until late 2014. Defense Department personnel and readiness officials \u201cshould have monitored the AFRH Trust Fund balance\u201d in accordance with DoD requirements and should have identified concerns before fiscal 2014, auditors stated. Auditors also noted that the concerns were raised by AFRH officials in a fiscal 2013 performance accountability report.<\/p>\n\n\n\t