Financial Systems:

Weaknesses Impede Initiatives to Reduce Air Force Operations and Support Costs

NSIAD-93-70: Published: Dec 1, 1992. Publicly Released: Dec 1, 1992.

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GAO assessed whether Air Force financial systems provide F-15 aircraft managers with the tools they need to better account for and more efficiently manage the costs of reparable parts, aviation fuel, and depot operations.

GAO found that: (1) the Air Force Visibility and Management of Operations and Support Costs system's data were not sufficiently accurate, timely, or detailed; (2) the Air Force's financial management systems do not provide cost information on aircraft reparable parts or timely, complete, and accurate information on aviation fuel usage; (3) financial management systems at the Warner Robins Air Logistics Center did not provide accurate cost data about repairing and modifying individual F-15 aircraft, primarily because of weak internal controls; (4) Warner Robins used excessive standard labor hours to bill and budget for modification work, resulting in overcharges to aircraft procurement funds during fiscal year (FY) 1991 and overstated budgets for the installation of modifications; (5) the F-15 repair program lost about $8.7 million in FY 1991; and (6) Warner Robins incorrectly made materiel charges for individual aircraft to overhead instead of specific jobs.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: The agency has not yet responded to the recommendations in this report; the Air Force, however: (1) has implemented a stock funding approach to aircraft repair so that repair costs can be analyzed; and (2) is developing an accounting module that will collect data on fuel usage by aircraft tail number. The module became operational in October 1993.

    Recommendation: The Secretary of the Air Force should direct the Air Force Comptroller to develop guidance to assist wing commanders in collecting and analyzing: (1) data on wings' costs to repair parts; and (2) fuel usage data by specific aircraft.

    Agency Affected: Department of Defense: Department of the Air Force

  2. Status: Closed - Implemented

    Comments: The agency has not yet responded to the recommendations in this report; the Air Force, however: (1) has implemented a stock funding approach to aircraft repair so that repair costs can be analyzed; and (2) is developing an accounting module that will collect data on fuel usage by aircraft tail number. The module became operational in October 1993.

    Recommendation: The Secretary of the Air Force should direct the Commander, Air Force Logistics Command (AFLC), to implement controls to help ensure the fuel accounting system provides accurate, timely, and sufficiently detailed data to analyze fuel consumption patterns.

    Agency Affected: Department of Defense: Department of the Air Force

  3. Status: Closed - Implemented

    Comments: The agency has not yet responded to the recommendations in this report; however, the Air Force has instituted a directive to monitor the costs of repairs down to the job level. The FY 1994 budget will be based on standard labor hours.

    Recommendation: To better ensure that the F-15 directorate controls its costs, accurately prices its work for the unit cost initiative, and accurately bills and budgets for future work, the Commander, AFLC, should direct the F-15 Weapon System Director to ensure that the standard labor hours used to bill for installing modifications do not include processing tasks common to modifications and periodic maintenance and do not exceed standard labor hours in approved technical orders.

    Agency Affected: Department of Defense: Department of the Air Force: Air Force Logistics Command

  4. Status: Closed - Implemented

    Comments: The agency has not yet responded to the recommendations in this report; however, the Air Force has instituted a directive to monitor the costs of repairs down to the job level. The FY 1994 budget will be based on standard labor hours.

    Recommendation: To better ensure that the F-15 directorate controls its costs, accurately prices its work for the unit cost initiative, and accurately bills and budgets for future work, the Commander, AFLC, should direct the F-15 Weapon System Director to ensure that materials charged to aircraft do not exceed requirements and questionable material charges in suspense listings are investigated and corrected in a timely manner to prevent their placement in the overhead account.

    Agency Affected: Department of Defense: Department of the Air Force: Air Force Logistics Command

  5. Status: Closed - Implemented

    Comments: The Air Force has instituted a directive to ensure that the budget for the F-15 Multistage Improvement Program will be based on validated standard labor hours. This will also be the basis for future budget submissions.

    Recommendation: To better ensure that the F-15 directorate controls its costs, accurately prices its work for the unit cost initiative, and accurately bills and budgets for future work, the Commander, AFLC, should direct the F-15 Weapon System Director to ensure that future year budgets for the Multi-Stage Improvement Program are based on standard labor hours that have been validated and adjusted for common processing tasks.

    Agency Affected: Department of Defense: Department of the Air Force: Air Force Logistics Command

 

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