Loss of Accounting Integrity in Air Force Procurement Appropriations
FGMSD-77-81: Published: Nov 1, 1977. Publicly Released: Nov 1, 1977.
- Full Report:
The Air Force's use of improper accounting procedures has resulted in a loss of integrity in its procurement appropriations. Although the Air Force has directed that several corrective actions be taken, there is still a need to change its accounting procedures so that advances received from foreign countries under cooperative logistics arrangements are properly recorded and that such advances now in the wrong accounts are transferred to the proper accounts.
Recommendation for Executive Action
Comments: Please call 202/512-6100 for additional information.
Recommendation: The Secretary of Defense should have the Secretary of the Air Force direct the Air Force Audit Agency to review the revised accounting procedures the Air Force has implemented to: (1) determine if they are adequate so that customer orders and related obligations are recorded in the proper fiscal year (FY); (2) determine whether it is feasible to correct prior year fund resource balances resulting from the improper customer order accounting procedures; (3) verify that the improper entries in the FY 1973 missile account have been corrected and determine the validity of adjustments made in FY 1977 which increased fund resources in that account; and (4) determine whether unobligated customer order balances in the expiring FY 1975 accounts were properly transferred at the end of FY 1977 and whether amounts improperly transferred at the end of FY 1975 and 1976 have been recorded in the correct accounts. The Secretary of Defense should also have the Secretary of the Air Force revise Air Force accounting procedures so that the correct appropriation or stock fund is credited for advances received under cooperative logistics arrangements and adjust any advances not currently recorded in the proper account.