Initiatives to Improve Free Asset Management
LCD-77-416: Published: Feb 28, 1977. Publicly Released: Feb 28, 1977.
- Full Report:
The Department of Defense (DOD) generates funds by selling equipment which is not required to be replaced in DOD inventory. Receipts from these sales are called free assets. DOD has taken corrective actions to improve its management of free assets.
A past GAO report identified weaknesses in reporting and managing free assets. Since that time, DOD established a definition of free assets to be used by all the services; notified service branches of the new definition and required conformance with it; and established the Security Assistance Accounting Center to promote efficient financial management of the Foreign Military Sales Program. The objective of standardizing procedures could be better achieved if DOD and the service headquarters closely coordinated their work. The Army is doing a great deal to correct free asset management deficiencies noted in the last GAO report.