Millions of Dollars of Costs Incurred in Training Foreign Military Students Have Not Been Recovered

FGMSD-76-91: Published: Dec 14, 1976. Publicly Released: Dec 14, 1976.

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The extent to which the Department of Defense (DOD) incurred millions of dollars of nonrecovered costs in training foreign students was examined.

In the Army, estimated undercharges were $18.7 million in 1975. In the same year, Air Force training costs totaled $11.7 million at only one of eight pilot training installations. Both the Army and the Air Force pricing systems excluded appreciable costs. Although the Navy's pricing procedures for training foreign students were designed to recover the full cost, the Navy did not recover about $2.7 million in costs to foreign governments during 1975. The Marine Corps did not charge foreign governments for training. DOD failed to provide adequate guidance on the pricing of foreign training so that each of the military services developed its own guidelines. The procedures used by the military services for accounting, billing, collecting, and depositing of receipts need substantial improvement.

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