Action Needed To Improve Timeliness of Army Billings for Sales to Foreign Countries

AFMD-81-61: Published: Apr 30, 1981. Publicly Released: Apr 30, 1981.

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GAO reviewed the Army accounting system used to bill and collect for foreign military sales from foreign countries' trust fund accounts.

GAO found that: (1) the Army has not promptly collected from trust fund accounts for goods and services delivered to foreign customers; (2) serious weaknesses exist in the Army billing system, and many deliveries were not billed at the time of shipment as required; and (3) when the Army's procedures provide for obtaining advance funds, the accounts requested do not always recover costs.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

    Recommendation: The Secretary of Defense should require the Commander of the U.S. Army Materiel Development and Readiness Command to place increased management emphasis on monitoring and followup efforts to ensure that foreign customers are billed for all shipments. This emphasis would include establishing and enforcing standard timeframes for completing billing actions.

    Agency Affected: Department of Defense

  2. Status: Closed - Implemented

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

    Recommendation: The Secretary of Defense should require the Commander of the U.S. Army Materiel Development and Readiness Command to establish procedures to compare amounts obtained from trust fund accounts with amounts disbursed. This procedure should ensure that adequate advances are collected by the Army when major items are procured for direct delivery to foreign military sales customers.

    Agency Affected: Department of Defense

  3. Status: Closed - Implemented

    Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

    Recommendation: The Secretary of Defense should ensure that the Army devises and implements a system which provides for directly charging the foreign governments' trust fund accounts when foreign military sales items are directly obtained from contractors.

    Agency Affected: Department of Defense

 

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