Foreign Currency Exchange Rate Fluctuation Funds

ID-81-54: Published: Aug 21, 1981. Publicly Released: Aug 21, 1981.

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GAO reviewed the contingency funds approved by Congress to cover shortages, caused by foreign currency exchange rate fluctuations, in the Department of Defense's (DOD) overseas programs. The objective of the review was to evaluate the effectiveness of procedures for using and accounting for those funds.

GAO found the procedures to be generally effective, but noted inconsistencies among the military services in handling exchange rate fluctuations for some programs and activities and a few relatively minor operating deficiencies.

Recommendations for Executive Action

  1. Status:

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Secretary of Defense should issue guidelines to ensure that the services uniformly account for gains and losses due to foreign currency exchange rate fluctuations in military construction and family housing programs.

    Agency Affected: Department of Defense

  2. Status:

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Secretary of Defense should determine whether gains and losses from foreign currency fluctuations for travel expenses are significant and then establish a uniform policy for handling these transactions.

    Agency Affected: Department of Defense

 

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