Financial Management: Agencies' Actions to Eliminate 'M' Accounts and Merged Surplus Authority
AFMD-93-7
Published: Apr 02, 1993. Publicly Released: Apr 07, 1993.
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Highlights
Pursuant to congressional requests, GAO reviewed federal agencies' implementation of Public Law 101-510, focusing on: (1) accountability for expired appropriation accounts; and (2) elimination of M accounts and merged surplus authority.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should direct the DOD Comptroller to implement policies and procedures that require the military services and other Defense agencies to deobligate the unsupported restorations of merged surplus authority. |
Closed – Not Implemented
DOD is continuing to review its balances. However, effective October 1, 1993, all "M" account balances will be cancelled. Therefore, this recommendation will not be applicable after September 30, 1993.
|
| Department of Defense | The Secretary of Defense should direct the DOD Comptroller to implement policies and procedures that require the Air Force and Navy to investigate the charges related to the within scope contract changes that were made to current year appropriations to: (1) determine whether they would have violated the Antideficiency Act if they had properly charged the expired accounts; and (2) immediately report to Congress and the President any Antideficiency Act violations confirmed by the investigations. |
Closed – Implemented
The Navy has completed its review and determined that no violations occurred. The Air Force has begun its investigation and acknowledges that it probably has incurred Antideficiency Act violations. Any violations identified will be reported as required.
|
| Office of Management and Budget | The Director, OMB, should require federal agencies to disclose, in their financial reports, obligated amounts that have been canceled as a result of Public Law 101-510 until such time that it is determined that no claims requiring payment remain outstanding. |
Closed – Implemented
OMB issued interim guidance for FY 1992 financial statement reporting. Final guidance will be issued by October 1993 in OMB Bulletin 93-02. The guidance will require footnotes to the financial reports to disclose the amount of cancelled balances.
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Topics
Balances of budget authorityBudget authority rescissionBudget obligationsDefense appropriationsExpired appropriationsFederal agenciesFinancial managementM accountsReporting requirementsMilitary forces