Recommendations for Executive Action

1. Status: Closed - Implemented

   Comments: On April 21, 1990, agreement was reached that DLA would respond to Army inquiries within 15 days. The Army and DLA established a working subcommittee to address the problems and ensure adequate coordination.

   Recommendation: The Secretary of Defense should direct the Secretary of the Army and the Director, Defense Logistics Agency (DLA), to establish policies and procedures to ensure that adequate coordination and cooperation exists between the subordinate commands and Defense Contract Administration Services Regions (DCASR) to resolve negative ULO already recorded in the subordinate commands' accounting records and collect any overpayments made to contractors.

   Agency Affected: Department of Defense

2. Status: Closed - Implemented

   Comments: A review committee of senior Army and DLA accounting managers was established in July 1990 to implement this recommendation. This is an ongoing process which is being addressed under the DOD Corporate Information Management (CIM) initiative. This action is considered responsive to the recommendation.

   Recommendation: The Secretary of Defense should direct the Secretary of the Army and the Director, DLA, to establish policies and procedures to ensure that adequate coordination and cooperation exists between the subordinate commands and DCASR to determine the control weaknesses that have caused negative ULO and institute controls to correct those problems with the intent of eliminating negative ULO.

   Agency Affected: Department of Defense

3. Status: Closed - Implemented

   Comments: On May 24, 1990, major Army commands were directed to comply with the recommendation. AMC will provide monthly reports, by subordinate commands, on the status of balances.

   Recommendation: The Secretary of the Army should direct the subordinate commands to: (1) comply with existing regulations on aging negative balances and taking immediate action to correct negative ULO; and (2) report summary level data on the total amount and age of negative ULO to AMC on a quarterly basis.

   Agency Affected: Department of Defense: Department of the Army

4. Status: Closed - Implemented

   Comments: Both the Army and DOD reported the Army's negative ULO as a material weakness in their December 1990 FMFIA reports.

   Recommendation: The Secretary of the Army should identify negative ULO as a material weakness in the Army's annual Federal Managers' Financial Integrity Act (FMFIA) report to the Secretary of Defense until this weakness is corrected.

   Agency Affected: Department of Defense: Department of the Army

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