Financial Management: Air Force Systems Command Is Unaware of Status of Negative Unliquidated Obligations
AFMD-91-42
Published: Aug 29, 1991. Publicly Released: Aug 29, 1991.
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Highlights
Pursuant to a congressional request, GAO examined the negative unliquidated obligations (ULO) associated with the purchase of weapon systems and equipment at the Air Force Systems Command (AFSC), focusing on: (1) the magnitude, age, and causes of negative ULO for contracts jointly administered by AFSC product divisions and the related Air Force payment activity handled by the Defense Finance and Accounting Service (DFAS); and (2) the adequacy of controls to ensure that any overpayments that could cause negative ULO are promptly recorded as receivables and collected.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should direct the Secretary of the Air Force and the Director, DFAS, to establish and implement policies and procedures for identifying and reporting, at least quarterly, to AFSC management the magnitude, age, and causes of negative ULO. |
Closed – Implemented
Reporting was implemented March 31, 1992; aging was implemented September 30, 1992; and system changes to improve processes are expected to be completed by late 1993. Based upon the result of field work, the Air Force is now aging negative unliquidated obligations. The Air Force has been doing the aging since at least June 1993. Monthly reports are provided to the Defense Senior Financial Management Oversight Council.
|
| Department of Defense | The Secretary of Defense should direct the Secretary of the Air Force and the Director, DFAS, to promptly resolve identified negative ULO. |
Closed – Implemented
On September 1991, DFAS directed prompt resolution and immediate collection action for overpayments.
|
| Department of Defense | The Secretary of Defense should direct the Secretary of the Air Force and the Director, DFAS, to comply with existing accounting requirements for recording and collecting overpayments to contractors. |
Closed – Implemented
On October 1991, DFAS requested DOD components to comply with existing accounting requirements for recording and collecting overpayments.
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Topics
Accounting errorsAir Force procurementAir Force suppliesBudget obligationsDebt collectionFederal agency accounting systemsInternal controlsOverpaymentsReporting requirementsUnobligated budget balances