DOD Inflation: Budgeting and Monitoring Inflation Funding in the Department of Defense
NSIAD-88-79
Published: Apr 26, 1988. Publicly Released: May 26, 1988.
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Highlights
Pursuant to a congressional request, GAO reviewed the Department of Defense (DOD) budgeting procedures to determine the feasibility of: (1) budgeting separately for inflation; (2) restricting the use of inflation funds specifically for inflation costs; (3) requiring that funds appropriated for inflation, but not spent, lapse at the end of the fiscal year; and (4) providing inflation estimates for individual systems in the Selected Acquisition Reports (SAR).
Recommendations
Recommendations for Executive Action
Agency Affected | Recommendation | Status Sort descending |
---|---|---|
Department of Defense | 1. The Secretary of Defense should ensure that inflation amounts included in SAR are computed and adjusted consistently by using the GNP deflator. |
DOD states that Instruction 7000.3 requires that the GNP deflator be used unless alternate rates are approved by ASD(C), and that DOD will ensure that these policy requirements are followed.
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Topics
Accounting proceduresAppropriated fundsBudget administrationDefense appropriationsDefense budgetsDefense procurementFunds managementFuture budget projectionsInflationMonitoring