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Criteria for Recording Obligations for Defense Stock Fund Purchases Should Be Changed

AFMD-83-54 Published: Aug 19, 1983. Publicly Released: Aug 19, 1983.
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Highlights

GAO evaluated Department of Defense (DOD) procedures for obligating operation and maintenance appropriations for stock fund purchases to determine whether the obligations are being made in accord with existing statutory requirements. Defense stock funds finance the purchase of materials and common-use items and hold these items in inventory until purchased by military service or DOD customers, and customer activities use appropriated funds to reimburse the stock fund for the cost of items delivered.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of the Air Force The Army and the Air Force should complete, as soon as practical, the change in procedures for recording obligations for stock fund purchases that the Assistant Secretary of Defense recently outlined to the military services.
Closed – Implemented
The Army and the Air Force have fully concurred with this recommendation and implemented a change in procedures for recording obligations for stock fund purchases.
Department of the Army The Army and the Air Force should complete, as soon as practical, the change in procedures for recording obligations for stock fund purchases that the Assistant Secretary of Defense recently outlined to the military services.
Closed – Implemented
The Army and the Air Force have fully concurred with this recommendation and implemented a change in procedures for recording obligations for stock fund purchases.
Department of Defense The Secretary of Defense should, in accord with the criteria detailed in this report, make sure that the new procedures are uniformly implemented and effectively operated by all three military services.
Closed – Implemented
DOD fully concurred with this recommendation and ensured that the procedures were implemented by the three military services.

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Topics

National Defense
Accounting proceduresAppropriated fundsDefense procurementFinancial managementInventory control systemsRecords managementMilitary forcesBudget requestsInventoryInternal controls