Comments on Obligations Incurred by TRICARE Management Activity
B-287619: Published: Jul 5, 2001. Publicly Released: Jul 5, 2001.
This report provides information on the legal requirements for recognizing and recording obligations under the Defense Health Program (DHP), specifically focusing on (1) the legal basis for obligations incurred by TRICARE Management Activity for, among other services, medical services provided directly by the Department of Defense (DOD) to beneficiaries as well as medical services provided by civilian contractors who subsequently bill DHP for those services, (2) the legal basis for obligations for costs of change orders or other negotiated settlements, and (3) whether the Antideficiency Act applies to DHP obligations and expenditures. GAO held that (1) DOD 's practices in obligating funds are consistent with federal regulations, (2) DOD should record obligations for change orders against the appropriation current at the time the services are rendered, and (3) DOD may enter into obligations in excess of available resources, but it must obtain appropriations sufficient to liquidate those obligations.