Part of the problem is the Army is not receiving goods or services in exchange for this money so if the money is being misdirected it is not immediately obvious

Part of the problem is the Army is not receiving goods or services in exchange for this money so if the money is being misdirected it is not immediately obvious. I'm guessing this grant system is able to work based on the reputation of the grantees not to scam the Army but because she was an insider she was able to exploit her position to receive grants without a strong reputation. If people are straight up lying to you its very difficult to detect the fraud unless you bring in an auditor that has the power to get statements directly from the bank and interview suppliers, employees and subcontracters to verify payments are going to where they are claimed.