Auditing and Financial Management:
Selected Significant Audit Findings In The Department of Defense
B-106190, Jan 31, 1969
GAO reported on its audit findings related to the activities of the Department of Defense (DOD).
GAO noted that: (1) Army procedures did not provide a systematic method for the communication and consideration of recommended changes in plans that affect equipment requirements; (2) had Army officials given timely consideration to recommendations that usage of the M-132 flamethrowers be more limited than had been originally planned, the flamethrowers might not have been purchased in excess quantities; (3) contracts for the excess quantities were subsequently terminated at an estimated loss to the government of about $2.7 million; (4) the Air Force acquired facilities for the Titan III booster program in accordance with its original plans, which had not been reevaluated and updated; (5) had the plans been reevaulated and updated, GAO believes a substantial portion of the estimated costs of about $26.3 million could have been saved; (6) GAO found a need for DOD to improve its system of controls over government-owned facilities, special tooling, and material in the possession of contractors; (7) the leasing by contractors of land and buildings to be used almost exclusively in the performance of government contracts resulted in greater costs to the government than would have been the case if the facilities had been purchased by the contractors; (8) substantial annual savings could be realized if the Navy would furnish to its contractors the petroleum products used by them in the testing of aircraft and aircraft engines instead of permitting the contractors to supply these products as a part of their contracts; and (9) the Navy wholesale inventories, and similar General Services Administration inventories held for Navy use, unnecessarily duplicated each other and resulted in duplicate management and warehousing functions in the government supply system as a whole.