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DOD Infrastructure: DOD Is Opening Unneeded Finance and Accounting Offices

NSIAD-96-113 Published: Apr 24, 1996. Publicly Released: Apr 24, 1996.
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Highlights

GAO reviewed the Department of Defense's (DOD) plan to open new finance and accounting offices.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense The Secretary of Defense should direct the Under Secretary of Defense (Comptroller) to terminate plans to open the five facilities that DFAS determined are no longer needed to effectively carry out DOD finance and accounting operations.
Closed – Implemented
DOD did not agree with the recommendation. DOD concluded that the National Defense Authorization Act for Fiscal Year 1996 directed it to open two of the facilities that its study had concluded were not needed. However, there was still time to address the need for the remaining three facilities that were not needed. DOD delayed its decision to open three of the five unneeded operating locations and indicated it would provide Congress with the required information if it decided to open them. DOD later decided to open one additional location without conducting the required study. DOD's position for not studying the need for this facility was that the requirement only applied to sites opened during FY1996. Nevertheless, by not opening the remaining 2 sites, DOD avoided spending about $22 million in military construction funds.

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Topics

Defense cost controlDefense operationsFederal agency accounting systemsFederal agency reorganizationFinancial managementGovernment facility constructionMilitary downsizingMilitary facilitiesMilitary constructionNational security