Army Housing:

Overcharges for On-Base Lodging Have Not Been Repaid

NSIAD-93-188: Published: Aug 3, 1993. Publicly Released: Aug 3, 1993.

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Pursuant to a congressional request, GAO reviewed Army overcharges for on-base housing for personnel on temporary training assignments, focusing on whether the Army has: (1) repaid the accumulated overcharges to the proper accounts; and (2) reduced transient lodging service charges to eliminate overcharges.

GAO found that the: (1) Army has not repaid accumulated overcharges totalling $157 million as of September 30, 1991; (2) Army has not reimbursed its operations and maintenance accounts with nonappropriated morale, welfare, and recreation funds; (3) transfer of transient lodging charges to nonappropriated accounts is inconsistent with congressional guidance and Department of Defense (DOD) policy, but DOD has not required the Army to repay the overcharges; and (4) Army has stopped using transient lodging service charges to support other morale, welfare, and recreation activities, but it has continued to inflate service charges to reduce the impact of reductions in appropriated funds.

Matter for Congressional Consideration

  1. Status: Closed - Implemented

    Comments: Congress reduced the Army's operations and maintenance budget request for fiscal year 1994 by $50 million. Of this amount, $30 million is to be reimbursed from the Army's nonappropriated morale, welfare, and recreation account.

    Matter: Congress should direct the Army to reimburse the U.S. Treasury $123 million from its nonappropriated morale, welfare, and recreation funds.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: New DOD guidance requires service charges to be based on the minimum amount necessary to cover authorized expenses. The guidance was published in late 1994, and the Army required commanders to reduce service charges within 120 days of publication.

    Recommendation: The Secretary of the Army should direct base commanders to reduce transient lodging service charges to the minimum necessary to provide authorized services and amenities in accordance with DOD policy.

    Agency Affected: Department of Defense: Department of the Army

  2. Status: Closed - Implemented

    Comments: The Army Audit Agency verified compliance with directives to reduce service charges.

    Recommendation: The Secretary of the Army should require the Army Audit Agency to verify the Army's compliance with directives requiring it to reduce service charges and reimburse the U.S. Treasury from nonappropriated morale, welfare, and recreation funds.

    Agency Affected: Department of Defense: Department of the Army

 

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