Navy Housing:

Transient Lodging Operations Need Effective Management Control

NSIAD-92-27: Published: Oct 3, 1991. Publicly Released: Oct 3, 1991.

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Pursuant to a congressional request, GAO determined whether the Navy is efficiently operating its transient lodging facilities.

GAO found that: (1) although the Navy is required to lodge transient personnel on base whenever possible, it is not doing so; (2) travel costs are higher than necessary due to weaknesses in the Navy's reservation system that allow for the authorization of off-base per diem when on-base lodging is available; (3) the Navy is incurring increased costs in off-base lodging because billeting offices discourage reservists from using on-base facilities and have poor control over lodging facilities set aside for senior officials; (4) revenue balances suggest that the Navy is not properly adjusting fees or financing needed improvements in a timely fashion; and (5) the Navy lacks verifiable statistical information needed to determine the seriousness of the inefficiencies in its transient lodging operations and how best to remedy them.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: Naval Audit Service (NAS) review indicates that improvements to the reservation system could save $29.8 million annually in fiscal years 1993-97. Navy has not yet implemented corrective action and proposes no budget reduction until 1995. GAO brought this to the attention of Congress in its report on the Navy's fiscal year (FY) 1994 operations and maintenance (O&M) budget request.

    Recommendation: The Secretary of the Navy should direct the Chief of Naval Personnel to measure the extent to which travel costs have been affected by lodging Navy personnel off base when transient facilities were available on base.

    Agency Affected: Department of Defense: Department of the Navy

  2. Status: Closed - Implemented

    Comments: Some action is completed, but policy revision is not yet complete. The appropriations act was reduced in fiscal year 1992. There is no estimate of additional savings possible from: (1) better utilization of distinguished visitor quarters; and (2) lodging more reservists on-base. Navy is studying how these efficiencies might be exploited and an action plan could be in place by October 1993.

    Recommendation: The Secretary of the Navy should direct the Chief of Naval Personnel to develop cost-effective management actions that can be implemented to improve the efficiency of transient lodging operations on Navy bases.

    Agency Affected: Department of Defense: Department of the Navy

  3. Status: Closed - Implemented

    Comments: New controls were to be put in place by October 1992. GAO should assess their effectiveness when the NAS audit is completed in October 1992, and the plan for Department of Defense Inspector General (DOD/IG) followup in FY 1993 is in place. The Navy in 1993 reviewed its procedures and plans to take corrective action soon.

    Recommendation: The Secretary of the Navy should direct the Chief of Naval Personnel to implement management controls that will ensure transient lodging fee revenues are adjusted to minimum levels and used only when needed for economical improvements to the lodging facilities.

    Agency Affected: Department of Defense: Department of the Navy

  4. Status: Closed - Implemented

    Comments: Compliance with new directives was part of the of the DOD/IG effort in FY 1995.

    Recommendation: The Secretary of the Navy should establish controls to monitor the Navy's compliance with Department of Defense (DOD) transient lodging directives and related legislation.

    Agency Affected: Department of Defense: Department of the Navy

 

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