Internal Controls: Defense's Use of Emergency and Extraordinary Funds
AFMD-86-44
Published: Jun 04, 1986. Publicly Released: Jul 21, 1986.
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Highlights
GAO reviewed whether adequate procedures are in place to control the Department of Defense's (DOD) use of funds allocated for emergency and extraordinary (E&E) expenses.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should issue a departmentwide regulation governing all uses of E&E funds, not just those for official representation. At a minimum, this regulation should establish criteria regarding the purposes for which confidential funds can or cannot be used. |
Closed – Not Implemented
DOD does not concur with this recommendation. It has chosen not to issue a departmentwide regulation because of the authority extended to the Secretaries of Defense to use E&E funds at their discretion. In addition, DOD contends that, since the GAO report does not indicate any significant misuse of authority regarding the use of funds, no specific direction is required.
|
| Department of Defense | The Secretary of Defense should direct the Secretary of the Army and the Secretary of the Air Force to require the Army Intelligence and Security Command and the Air Force Office of Special Investigations to revise their regulations to require an adequate separation of duties in controlling checking accounts used for E&E funds. |
Closed – Implemented
Regulations were revised to ensure proper internal control by separation of duties in controlling checking accounts.
|
| Department of Defense | The Secretary of Defense should direct all DOD components authorized to use E&E funds for official representation to examine their records for at least the past 2 fiscal years and obtain reimbursement for E&E expenditures that were made primarily for the benefit of DOD personnel. |
Closed – Implemented
DOD reviewed the expenditures GAO questioned, and reimbursement will be considered in cases where it is appropriate. DOD believes, however, that no useful purpose would be served in reviewing all expenditures for the last 2 years. DOD also reviewed existing procedures for approving the expenditure of funds for official representation.
|
| Department of Defense | The Secretary of Defense should require that all regulations governing representation funds prohibit using such funds in the future for recurring events. |
Closed – Not Implemented
DOD does not concur with this recommendation. It contends that expenditures for recurring entertainment events are well within the intent of their E&E authority, whether foreseeable or not.
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Administrative costsDefense appropriationsDefense cost controlFunds managementInternal controlsMilitary forcesExpenditure of fundsSpecial investigationsFinancial managementChecking accounts