THE MISSISSIPPI LEGISLATURE

The Joint Committee on
Performance Evaluation and Expenditure Review

Report # 371

A Review of the Mississippi Military Department's Operations at Camp Shelby

December 9, 1997

Introduction

Camp Shelby is a military training facility in south Mississippi which is operated by the Mississippi Military Department. PEER reviewed internal controls, use of base housing, personnel management, and other aspects of the Military Department's operations at Camp Shelby.

Overview

The Mississippi Military Department has adequate internal controls in place to safeguard appropriated public funds at Camp Shelby. However, department management has not periodically reviewed implementation of these controls to prevent or detect violations and as a result some expenditures may have violated federal, state, and National Guard regulations.

Also, some non-appropriated public funds fall outside the normal internal control system, which has led to misuse by Camp Shelby management of two "checkbook" funds (the Activity Fund and the Officer's Club Board Fund). The Activity Fund had internal controls in place but managers overrode these controls and made several questionable expenditures. The Officer's Club Board Fund lacked the necessary internal controls to prevent questionable expenditures.

Another case of Camp Shelby management's failure to execute internal controls occurred in 1996 and 1997 during the construction of wetlands crossings to create armored vehicle training areas. On this federally funded construction project, Military Department personnel exceeded federal cost ceilings, violated state purchasing regulations, poorly managed public funds, and may have violated other federal, state, and National Guard regulations.

Concerning control over inventory and physical assets, Camp Shelby has and implements good controls over state and federal property on base. Outside audits by state and federal auditors contribute to this system of controls.

Camp Shelby management has also occasionally used housing facilities on post for private, rather than public, purposes. While most housing at Camp Shelby is used for a legitimate public purpose, some senior members of the Military Department have used these facilities for private purposes without adequately reimbursing the state.

Finally, PEER reviewed the personnel policies and procedures of the Military Department as they are implemented at Camp Shelby. Camp Shelby management adheres to Military Department regulations concerning the assignment, promotion, and appraisal of employees and the use of the dual employment system.

Recommendations

  1. The State Auditor and the Attorney General should review the Military Department's expenditure of $3,992.42 ($1,384.41 from the Activity Fund and $2,608.01 from Officer's Club Fund) to determine whether these moneys were inappropriately expended and whether these funds should be recovered from Military Department personnel. Also, the State Auditor should perform a complete audit of the Camp Shelby Activity Fund and the Camp Shelby Officer's Club Board Fund to determine if any other expenditures were unauthorized or inappropriate and to review the implementation of internal controls.
  2. The State Department of Rehabilitation Services should review Camp Shelby's contracts with local soft drink distributors and determine whether they violated the Randolph-Sheppard Act, which requires that vending revenues on public property be remitted to Vocational Rehabilitation for the Blind.
  3. The Military Department should bring the Activity Fund and Officer's Club Board Fund under the stricter internal controls to which other public moneys at Camp Shelby are subjected. The Military Department should report to the Legislature on how it intends to change internal controls for these funds to insure that they are protected from further misuse.
  4. The State Auditor and the Attorney General should review the wetlands project expenditures to determine if Military Department personnel violated state, federal, or National Guard regulations in the course of this project. Also, the United States Property and Fiscal Office Auditor should perform a complete audit of the Camp Shelby wetlands project to determine the true costs of the project and to review adequacy of internal controls.
  5. The Military Department should review its use of open contracts for equipment rental. The department should perform a needs analysis before entering into any further hourly service contracts. The department should develop policies requiring that these contracts are only used when absolutely necessary and not as a convenience or as a way to circumvent proper construction project procedures. Also, the Military Department should develop a policy to require Camp Shelby managers (and similar managers at other Military Department locations) responsible for supervising construction and maintenance contracts to monitor the time and performance of such contractors.
  6. Camp Shelby managers should obtain competitive bids for major or minor construction projects and the department's Facilities Management Office in Jackson should manage these projects.
  7. The State Auditor should audit the Billeting Fund and determine whether any additional fees should be collected from individuals using public property for private purposes. Also, the Military Department should develop a written policy for the use of the White House and Quonset huts which covers acceptable use of these facilities.
  8. If the Camp Shelby Logistics Officer is allowed to remain in the Quonset hut, the Military Department should determine whether it should increase the rental rate to insure that the state does not lose money on utilities and other costs.
  9. The Adjutant General should mandate that all Military Department personnel required to do so accurately complete their federal Confidential Financial Disclosure Agreement forms.

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