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 <subject>Accountability</subject>
 <subject>Contract oversight</subject>
 <subject>Defense capabilities</subject>
 <subject>Department of Defense contractors</subject>
 <subject>Federal aid to foreign countries</subject>
 <subject>Federal funds</subject>
 <subject>Financial management</subject>
 <subject>Fraud</subject>
 <subject>Program management</subject>
 <subject>Security assessments</subject>
 <subject>Security policies</subject>
 <subject>Training utilization</subject>
 <subject>Iraq War and reconstruction</subject>
 <subject>Waste, fraud, and abuse</subject>
 <subject>Iraq</subject>
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 <title>Stabilizing and Rebuilding Iraq: Conditions in Iraq Are Conducive to Fraud, Waste, and Abuse</title>
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<abstract>This testimony discusses some of the systemic conditions in Iraq
that contribute to the fraud, waste, or abuse of U.S.-provided	 
funds. Since 2003, DOD has reported total costs of about $257.5  
billion for military operations in Iraq; these have increased	 
from about $38.8 billion in fiscal year 2003 to about $83.4	 
billion in fiscal year 2006. The largest increase has been in	 
operation and maintenance expenses, including items such as	 
support for housing, food, and services; the repair of equipment;
and transportation of people, supplies and equipment. Many of the
operation and maintenance expenses are for services. Other U.S.  
government agencies had reported obligations of $29 billion for  
Iraqi reconstruction and stabilization, as of October 2006. These
funds have been used for, among other things, infrastructure	 
repair of the electricity, oil, water, and health sectors;	 
training and equipping of the Iraqi security forces; and	 
administrative expenses. Specifically, the testimony focuses on  
(1) security, (2) management and reporting of the program to	 
train and equip Iraqi security forces, (3) contracting and	 
contract management activities, and (4) Iraqi capacity and	 
commitment to manage and fund reconstruction and security	 
efforts.</abstract>
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<identifier type="preferred citation">GAO-07-525T</identifier>
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<note>Testimony</note>
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 <topic>Contract oversight</topic>
 <topic>Defense capabilities</topic>
 <topic>Department of Defense contractors</topic>
 <topic>Federal aid to foreign countries</topic>
 <topic>Federal funds</topic>
 <topic>Financial management</topic>
 <topic>Fraud</topic>
 <topic>Program management</topic>
 <topic>Security assessments</topic>
 <topic>Security policies</topic>
 <topic>Training utilization</topic>
 <topic>Iraq War and reconstruction</topic>
 <topic>Waste, fraud, and abuse</topic>
 <topic>Iraq</topic>
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