Financial Management:

Army Records Contain Millions of Dollars in Negative Unliquidated Obligations

AFMD-90-41: Published: May 2, 1990. Publicly Released: May 2, 1990.

Contact:

Jeffrey C. Steinhoff
(202) 275-9454
contact@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Pursuant to a congressional request, GAO reviewed the Army Materiel Command's (AMC) procedures to monitor outstanding negative unliquidated obligations (ULO) related to supply and equipment inventory purchases.

GAO found that: (1) six major subordinate commands had negative ULO balances totalling about $328 million; (2) commands did not always resolve negative balances promptly; (3) coordination problems between the commands and other Department of Defense (DOD) organizations caused delays in resolving negative balances; (4) actions to correct negative ULO were slow because information on obligations, payments, or collection transactions was inaccurate or incomplete; and (5) contractor overpayments were the cause of $7.6 million in negative ULO and tied up Army funds that could have been used to meet other Army requirements. GAO also found that commands did not: (1) produce reports that showed how long their negative ULO balances had been outstanding; and (2) initiate adequate follow-up procedures to ensure that outstanding negative balances were resolved.

Mar 27, 2014

Mar 13, 2014

Mar 12, 2014

Feb 27, 2014

Dec 23, 2013

Dec 16, 2013

Dec 12, 2013

Dec 11, 2013

Looking for more? Browse all our products here