Management Control of the Department of Defense Overseas Dependents Schools Needs To Be Strengthened

HRD-83-3: Published: Nov 4, 1982. Publicly Released: Nov 4, 1982.

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GAO reported on the need for strengthening management control of the Department of Defense Dependents Schools (DODDS) overseas.

GAO found that the DODDS financial management system does not give managers the timely and accurate information necessary to plan for and control use of the school system's resources. DODDS has no accounting system; at present, accounting services are provided by four organizations. In addition, the school system has no adequate system of internal management controls to ensure, among other things, that receipts are properly accounted for and that goods and services paid for are received. Finally, GAO found that DODDS does not have authority to disburse funds. These conditions deprive management of information needed to ensure that the allotment of funds from the Department of Defense (DOD) is not overexpended.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: Part one and two of the recommendation were completed as of December 15, 1986. Part three was completed, as of September 28, 1988, when the Comptroller, Office of the Secretary of Defense (OSD), established DODDS disbursement procedures.

    Recommendation: The Secretary of Defense should: (1) develop accounting and internal management control systems in DODDS, as required by the Budget and Accounting Procedures Act of 1950; (2) develop a uniform financial coding system applicable to DODDS activities worldwide; and (3) establish a streamlined procedure for recording disbursements of DODDS funds in the school system's accounting records.

    Agency Affected: Department of Defense

  2. Status: Closed - Implemented

    Comments: Part four was completed on September 10, 1987. Parts one, two, and three of this recommendation were completed on September 28, 1988, when procedures for cross-disbursements among services were established by the Comptroller, OSD.

    Recommendation: The Secretary of Defense should direct the Director, DODDS, to: (1) return to the reimbursable concept in obtaining logistics support services; (2) revise DOD Manual 1342.6-M-1 to require monthly billing with prompt follow-up for recurring logistics support services; (3) ensure that all support agreements are brought current and maintained in that status and that they contain specific details relating to the nature and cost of the support services to be provided; and (4) develop and implement a financial management training program for school principals so that they can fulfill their responsibilities in monitoring and controlling logistics support costs.

    Agency Affected: Department of Defense

 

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