Expired Appropriations:
New Limitations on Availability Make Improved Management by DOD Essential
NSIAD-91-226: Published: Jul 18, 1991. Publicly Released: Jul 18, 1991.
Additional Materials:
- Full Report:
Contact:
(202) 512-4268
contact@gao.gov
Office of Public Affairs
(202) 512-4800
youngc1@gao.gov
Pursuant to a congressional request, GAO examined the Department of Defense's (DOD) use of expired appropriations, focusing on the: (1) growth and size of the M accounts and the merged surplus authority through September 30, 1990; (2) use of such accounts by the Army, Navy and Air Force to fund upward adjustments of contract costs; and (3) extent to which that use satisfied all legal requirements.
GAO found that: (1) between 1980 and 1990, the services' combined M accounts grew from $2.7 billion to $18.8 billion, and the merged surplus authority grew from $5.2 billion to $27 billion; (2) contract cost overruns, the settlement of contractors' claims, and the funding of contingent liability from expired budget authority accounted for over half of the expired budget authority requested; (3) between fiscal years 1985 and 1989, certain programs made multiple requests for large amounts of expired and lapsed budget authority to fund upward adjustments of previously obligated budget authority; (4) legislation limited the requirement that DOD notify Congress before using expired budget authority to make large upward adjustments to contract costs; (5) of the 18 upward adjustments GAO studied, nine were proper, three were improper, and the remaining six were necessitated by poor management practices; (6) new legislation will phase out existing M accounts, eliminate merged surplus authority, and make expired appropriations available to agencies for a finite period; and (7) such actions will increase the need for agencies to improve their management and control over the use of expired appropriations.
Recommendation for Executive Action
Status: Closed - Implemented
Comments: DOD issued guidance, dated June 13, 1991, that fully implemented the recommendation.
Recommendation: The Secretary of Defense should direct the service secretaries to revise their procedures for the use of expired budget authority to require, in addition to the information already provided in the request and approval process, a comprehensive statement concerning the reason for the upward adjustment. This information should explain the circumstances, contingencies, or management practices that caused the need for the upward adjustment.
Agency Affected: Department of Defense
Explore the full database of GAO's Open Recommendations
»
Dec 15, 2020
-
The Nation's Fiscal Health:
Information on the Spending and Revenue Implications of Potential Debt TargetsGAO-21-211: Published: Dec 15, 2020. Publicly Released: Dec 15, 2020.
Oct 7, 2020
-
The Nation's Fiscal Health:
A Long-Term Plan Is Needed for Fiscal SustainabilityGAO-21-161T: Published: Oct 7, 2020. Publicly Released: Oct 7, 2020.
Sep 23, 2020
-
The Nation's Fiscal Health:
Effective Use of Fiscal Rules and TargetsGAO-20-561: Published: Sep 23, 2020. Publicly Released: Sep 23, 2020.
Jan 23, 2020
-
Federal Trust Funds and Other Dedicated Funds:
Fiscal Sustainability Is a Growing Concern for Some Key FundsGAO-20-156: Published: Jan 16, 2020. Publicly Released: Jan 23, 2020.
Dec 19, 2019
-
State and Local Governments' Fiscal Outlook:
2019 UpdateGAO-20-269SP: Published: Dec 19, 2019. Publicly Released: Dec 19, 2019.
Nov 14, 2019
-
Certificated Expenditures:
Executive Office of the President FY 2018 Certificated Expenditures Were Spent for Authorized PurposesGAO-20-139R: Published: Nov 14, 2019. Publicly Released: Nov 14, 2019.
Oct 16, 2019
-
Civilian Personnel:
Additional Guidance and Consistent Data Reporting Could Help Improve the Marine Corps' Budget ManagementGAO-20-148: Published: Oct 16, 2019. Publicly Released: Oct 16, 2019.
Jun 26, 2019
-
The Nation's Fiscal Health:
Actions Needed to Achieve Long-Term Fiscal SustainabilityGAO-19-611T: Published: Jun 26, 2019. Publicly Released: Jun 26, 2019.
Apr 10, 2019
-
The Nation's Fiscal Health:
Action Is Needed to Address the Federal Government's Fiscal FutureGAO-19-314SP: Published: Apr 10, 2019. Publicly Released: Apr 10, 2019.
Mar 27, 2019
-
Fiscal Exposures:
Federal Insurance and Other Activities That Transfer Risk or Losses to the GovernmentGAO-19-353: Published: Mar 27, 2019. Publicly Released: Mar 27, 2019.
Looking for more? Browse all our products here