Foreign Military Sales: Redirection of Accounting Improvement Efforts Is Appropriate
AFMD-88-75
Published: Sep 15, 1988. Publicly Released: Sep 15, 1988.
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Highlights
Pursuant to a congressional request, GAO reviewed Department of Defense (DOD) efforts to correct long-standing accounting problems in its Foreign Military Sales (FMS) Program.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | To ensure that reconciliations are an integral part of routine FMS accounting activities and to ensure that both routine and nonroutine reconciliation responsibilities are clearly defined, the Secretary of Defense should: (1) assign full FMS accounting responsibility, including reconciliation, to the Air Force; and (2) clarify the role of the Reconciliation and Case Closure Board in the reconciliation process. |
The Air Force has been assigned responsibility for developing and implementing a new accounting system. The reconciliation of the accounting records is an ongoing process involving the Army, Navy, and Air Force, the Security Assistance Advisory Council, and DSAA. Also, DOD clarified the role of the Reconciliation and Case Closures Board.
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Topics
Accounting proceduresBilling proceduresFederal agency accounting systemsFinancial management systemsForeign military salesFunds managementInternal controlsSystems designTrust fundsMilitary forces