Correct Balance of Defense's Foreign Military Sales Trust Fund Unknown
FGMSD-80-47
Published: Jun 03, 1980. Publicly Released: Jun 10, 1980.
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Highlights
A report was undertaken on the accounting differences between cash balances reported to foreign customers by the Department of Defense (DOD) and cash balances carried in those customer's trust fund accounts for all services, and on financial management problems DOD experienced in the administration of the Foreign Military Sales Program.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should direct the military departments and the Security Assistance Accounting Center to establish adequate control over customer trust funds by identifying and correcting existing differences in trust fund and supporting detailed sales case records. |
Closed – Not Implemented
The Defense Audit Service made an attempt to perform a reconciliation of the Trust Fund account and failed because the system lacked sufficient valid data. Therefore, the recommendation is no longer valid.
|
| Department of Defense | The Secretary of Defense should direct the military departments and the Security Assistance Accounting Center to establish adequate control over customer trust funds by enforcing Defense policies requiring reconciliation of key accounting records so that unexplained differences will not arise in the future. |
Closed – Not Implemented
The Defense Audit Service performed a review and found that reconciliation was not feasible. Accordingly, the recommendation is being dropped.
|
| Department of Defense | The Secretary of Defense should centralize foreign military sales accounting and disbursing as the most viable alternative to finally resolve Defense's foreign military sales accounting and financial management problems. |
Closed – Not Implemented
The House Appropriations Committee, Subcommittee on Defense, has directed DOD to pursue separate, as opposed to centralized, systems for foreign military sales. Accordingly, the recommendation is being dropped.
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Topics
Accounting systemsFinancial recordsForeign military salesRecords managementSystems evaluationTrust fundsMilitary forcesAccounting recordsInternational organizationsFinancial management