Reorganization of the Military Departments' Financial Management Structures

T-NSIAD-88-12: Published: Feb 17, 1988. Publicly Released: Feb 17, 1988.

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GAO discussed the military services' reorganization of their financial management structures in response to the Department of Defense Reorganization Act of 1986, which requires the departments to designate a single office to conduct functions that are civilian in nature. GAO noted that the: (1) Navy made the fewest changes, since it already had its comptroller functions under the Assistant Secretary for Financial Management; (2) Army integrated the functions and staffs from the financial management and comptroller offices into a new office under the Assistant Secretary for Financial Management; and (3) Air Force abolished the Assistant Secretary for Financial Management position and gave most financial management responsibility to its Comptroller, a major general. GAO believes that: (1) the Air Force financial management reorganization complies with legislative requirements, but could diminish civilian control; and (2) legislation should mandate that each military department have an Assistant Secretary for Financial Management, a highly qualified civilian presidential appointee with extensive financial management experience.

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