Financial Management: Defense Accounting Adjustments for Stock Fund Obligations Are Illegal
AFMD-87-1
Published: Mar 11, 1987. Publicly Released: Mar 11, 1987.
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Highlights
GAO reviewed the magnitude of a series of Department of Defense (DOD) obligation adjustments to determine whether: (1) the procedures the Army and Air Force used to calculate and record the adjustments were proper; and (2) the adjustments complied with existing legal requirements.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should direct the Secretaries of the Air Force and Army to ensure that future obligation adjustments made to surplus fund and "M" account balances comply with existing legal requirements, including the documentation requirements of 31 U.S.C. 1501. |
Closed – Not Implemented
In light of the fact that DOD agreed to comply with directions from the House Appropriations Committee (HAC), which are not identical to the GAO recommendations. GAO believes that this recommendation should be closed. GAO plans to continue monitoring the issue through its FIA efforts.
|
| Department of Defense | The Secretary of Defense should require the Office of the Assistant Secretary of Defense (Comptroller) to review and approve individual service adjustments to surplus fund and "M" account balances exceeding a certain threshold, such as $1 million. |
Closed – Not Implemented
In light of the fact that DOD agreed to comply with directions from HAC, which are not identical to the GAO recommendations. GAO believes that this recommendation should be closed. GAO plans to continue monitoring the issue through its FIA efforts.
|
| Department of Defense | The Secretary of Defense should promptly and fully disclose adjustments exceeding this threshold to the appropriate congressional committee chairmen. |
Closed – Not Implemented
In light of the fact that DOD agreed to comply with directions from HAC, which are not identical to the GAO recommendations. GAO believes that this recommendation should be closed. GAO plans to continue monitoring the issue through its FIA efforts.
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Topics
Accounting proceduresBudget amendmentsBudget authorityBudget obligationsFunds managementInternal controlsMilitary appropriationsMilitary budgetsSecuritiesMilitary forces