International 1

International affairs: DOD Oversight of Foreign Reimbursements (2020-27)

By implementing a process to monitor orders and resolve outstanding reimbursements, the Department of Defense could recover millions of dollars in overdue repayments for sales made to foreign partners.

Year Identified: 2020
Area Number: 27
Area Type: Cost Savings & Revenue Enhancement

1 Total Action(s)

Action 1
Partially Addressed

The Secretary of Defense should implement a process to monitor Acquisition and Cross-Servicing Agreement (ACSA) orders recorded as overdue in the Department of Defense's (DOD) system of record, and take steps to resolve outstanding reimbursements, as appropriate.

Executive Branch
Last Updated
August 31, 2021

DOD agreed with GAO’s March 2020 recommendation and has taken steps to implement it.

First, DOD began seeking outstanding reimbursements in July 2019. In response to GAO’s inquiries during the course of the review from July through October 2019, DOD examined a sample of ACSA orders and ultimately requested and received reimbursement for five unpaid ACSA orders, securing a total of $1,027,858 of outstanding reimbursement for support provided to U.S. partners. Beyond these initial reimbursements DOD collected, DOD’s March 2021 Report to Congress identified an additional $58 million in unpaid reimbursements associated with 28 overdue ACSA orders from fiscal years 2014-2020. The report noted that DOD is making efforts to collect these reimbursements.

Second, DOD has initiated efforts to implement a process to better monitor ACSA orders. For example, in January 2021, DOD issued revisions to its Financial Management Regulation that clarified some roles and responsibilities for managing overdue ACSA-related debt. Further, DOD updated its system of record used to track ACSA orders that officials indicated should provide improved information to use in monitoring overdue orders. As of April 2021, DOD was in the process of developing standard procedures for collecting overdue ACSA reimbursements.

GAO continues to work with DOD to better understand how it is implementing the new guidance and system improvements to better monitor ACSA orders and resolve thousands of remaining outstanding reimbursements DOD estimates to be worth tens of millions of dollars.

Implementing Entity:
Department of Defense
GAO Contacts