DOD Budget: Controls Needed Over Inflation Dividends
NSIAD-93-62BR
Published: Dec 14, 1992. Publicly Released: Dec 14, 1992.
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Highlights
GAO reviewed the Department of Defense's (DOD) management controls over excess funds caused by overestimates of the inflation rate.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should monitor and report on inflation amounts, changes, and revisions promptly as Congress considers appropriation requests, rescission proposals, and reprogramming plans advanced by the Department. |
Closed – Not Implemented
DOD believes that further reporting requirements are not necessary. The DOD FY 1994 budget request used CBO inflation predictors, and no FY 1994 dividend is anticipated.
|
| Department of Defense | The Secretary of Defense should determine the amount of the fiscal year 1992 inflation dividend that should be proposed to Congress for rescission and the amount that can be used to offset funding requirements in subsequent years. |
Closed – Not Implemented
DOD states that no inflation dividend exists for 1992. No rescission was proposed. DOD did not have controls in place to identify programs or functions that might not have obligated all dividend funds appropriated for FY 1992.
|
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Topics
Budget authority rescissionCongressional oversightDefense appropriationsDefense budgetsFunds managementFuture budget projectionsInflationInternal controlsReporting requirementsUnobligated budget balances