Internal Controls:

Funding of International Defense Research and Development Projects

NSIAD-91-27: Published: Oct 30, 1990. Publicly Released: Oct 30, 1990.

Contact:

Richard Davis
(202) 512-3504
contact@gao.gov

 

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

GAO reviewed the practices and procedures the Navy and the Office of the Secretary of Defense (OSD) used to disburse fiscal year (FY) 1988 funds provided for North Atlantic Treaty Organization (NATO) cooperative research and development projects, focusing on whether the Navy disbursed funds in accordance with the Department of Defense Authorization Act of 1986 and subsequent authorizations and appropriations acts.

GAO found that the Navy: (1) did not disburse the funds as authorized and used some of them inappropriately for administrative support services; (2) did not report to OSD on how it used FY 1988 funds until April 1990; (3) made misleading statements-of-purpose on contracts and work orders to show that funds were used for authorized projects; (4) used multiple agents to disburse funds, which made it difficult to account for the funds; and (5) approved projects without first obtaining memorandums of understanding. GAO believes that the Department of Defense (DOD) initiated corrective actions to establish appropriate controls and framework for handling future NATO cooperative research and development funds.

Status Legend:

More Info
  • Review Pending-GAO has not yet assessed implementation status.
  • Open-Actions to satisfy the intent of the recommendation have not been taken or are being planned, or actions that partially satisfy the intent of the recommendation have been taken.
  • Closed-implemented-Actions that satisfy the intent of the recommendation have been taken.
  • Closed-not implemented-While the intent of the recommendation has not been satisfied, time or circumstances have rendered the recommendation invalid.
    • Review Pending
    • Open
    • Closed - implemented
    • Closed - not implemented

    Recommendations for Executive Action

    Recommendation: The Secretary of Defense should issue written instructions for the implementation of NATO cooperative research and development programs.

    Agency Affected: Department of Defense

    Status: Closed - Implemented

    Comments: Preparation of the handbook is in process, but delays have occurred. A DOD official estimates the handbook will be issued late in 1992. DOD issued instructions in December 1992 which satisfies the recommendation. The handbook is still underway.

    Recommendation: The Secretary of Defense should establish sufficient internal controls necessary for the Departments of Defense and the Navy to ensure that the funds made available for the program are used appropriately.

    Agency Affected: Department of Defense

    Status: Closed - Implemented

    Comments: DOD has initiated a reorganization and established a requirement for quarterly reports. The Navy is submitting quarterly reports.

    Jul 23, 2014

    Jun 9, 2014

    May 20, 2014

    • science icon, source: National Cancer Institute

      Nanomanufacturing and U.S. Competitiveness:

      Challenges and Opportunities
      GAO-14-618T: Published: May 20, 2014. Publicly Released: May 20, 2014.

    Feb 7, 2014

    Dec 20, 2013

    Nov 4, 2013

    • science icon, source: National Cancer Institute

      Small Business Innovation Research:

      Data Rights Protections
      GAO-14-116R: Published: Nov 4, 2013. Publicly Released: Nov 4, 2013.

    Jul 19, 2013

    Apr 10, 2013

    Feb 15, 2013

    Jun 20, 2012

    Looking for more? Browse all our products here