DOD Financial Management:
Improper Use of Foreign Currency Fluctuations Account
NSIAD-86-173: Published: Jul 11, 1986. Publicly Released: Aug 5, 1986.
- Full Report:
In response to a congressional request, GAO: (1) reviewed the Department of Defense (DOD) Foreign Currency Fluctuations, Defense (FCFD) account; (2) analyzed the need and justifications for transactions involving FCFD; (3) determined the source and type of funds being transferred into FCFD; and (4) determined the impact of the Balanced Budget and Emergency Deficit Control Act of 1985 on FCFD.
GAO found that DOD: (1) used budgeting records rather than accounting records to report on its FCFD funds; (2) substituted funds from its operations and maintenance account for FCFD funds which had already been spent to cover currency fluctuations; (3) retained $659.7 million of funds that it should have returned to the Treasury; and (4) circumvented a congressionally imposed ceiling on FCFD. GAO also found that the act reduced FCFD by $64.7 million.