Financial Systems: Weaknesses Impede Initiatives to Reduce Air Force Operations and Support Costs
NSIAD-93-70
Published: Dec 01, 1992. Publicly Released: Dec 01, 1992.
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Highlights
GAO assessed whether Air Force financial systems provide F-15 aircraft managers with the tools they need to better account for and more efficiently manage the costs of reparable parts, aviation fuel, and depot operations.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of the Air Force | The Secretary of the Air Force should direct the Air Force Comptroller to develop guidance to assist wing commanders in collecting and analyzing: (1) data on wings' costs to repair parts; and (2) fuel usage data by specific aircraft. |
Closed – Implemented
The agency has not yet responded to the recommendations in this report; the Air Force, however: (1) has implemented a stock funding approach to aircraft repair so that repair costs can be analyzed; and (2) is developing an accounting module that will collect data on fuel usage by aircraft tail number. The module became operational in October 1993.
|
| Department of the Air Force | The Secretary of the Air Force should direct the Commander, Air Force Logistics Command (AFLC), to implement controls to help ensure the fuel accounting system provides accurate, timely, and sufficiently detailed data to analyze fuel consumption patterns. |
Closed – Implemented
The agency has not yet responded to the recommendations in this report; the Air Force, however: (1) has implemented a stock funding approach to aircraft repair so that repair costs can be analyzed; and (2) is developing an accounting module that will collect data on fuel usage by aircraft tail number. The module became operational in October 1993.
|
| Air Force Logistics Command | To better ensure that the F-15 directorate controls its costs, accurately prices its work for the unit cost initiative, and accurately bills and budgets for future work, the Commander, AFLC, should direct the F-15 Weapon System Director to ensure that the standard labor hours used to bill for installing modifications do not include processing tasks common to modifications and periodic maintenance and do not exceed standard labor hours in approved technical orders. |
Closed – Implemented
The agency has not yet responded to the recommendations in this report; however, the Air Force has instituted a directive to monitor the costs of repairs down to the job level. The FY 1994 budget will be based on standard labor hours.
|
| Air Force Logistics Command | To better ensure that the F-15 directorate controls its costs, accurately prices its work for the unit cost initiative, and accurately bills and budgets for future work, the Commander, AFLC, should direct the F-15 Weapon System Director to ensure that materials charged to aircraft do not exceed requirements and questionable material charges in suspense listings are investigated and corrected in a timely manner to prevent their placement in the overhead account. |
Closed – Implemented
The agency has not yet responded to the recommendations in this report; however, the Air Force has instituted a directive to monitor the costs of repairs down to the job level. The FY 1994 budget will be based on standard labor hours.
|
| Air Force Logistics Command | To better ensure that the F-15 directorate controls its costs, accurately prices its work for the unit cost initiative, and accurately bills and budgets for future work, the Commander, AFLC, should direct the F-15 Weapon System Director to ensure that future year budgets for the Multi-Stage Improvement Program are based on standard labor hours that have been validated and adjusted for common processing tasks. |
Closed – Implemented
The Air Force has instituted a directive to ensure that the budget for the F-15 Multistage Improvement Program will be based on validated standard labor hours. This will also be the basis for future budget submissions.
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Topics
Air Force procurementAir Force suppliesAircraft maintenanceFederal agency accounting systemsFinancial management systemsIndustrial fundsInternal controlsInventory control systemsMilitary cost controlRevolving funds