Financial Management:

Theater Missile Defense Cooperation Account

NSIAD-95-93: Published: Apr 3, 1995. Publicly Released: Apr 3, 1995.

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Pursuant to a legislative requirement, GAO audited the funds accepted by the Secretary of Defense from foreign allies and international organizations for deposit in the Theater Missile Defense Cooperation Account, focusing on: (1) the amounts contributed; (2) the Secretary's efforts to obtain contributions in support of theater missile defense programs; (3) whether the Department of Defense (DOD) established adequate regulations to carry out legal requirements; and (4) whether the financial transactions complied with the law.

GAO found that: (1) although DOD established the account in the U.S. Treasury and notified allies about the account, no contributions had been received as of the end of February 1995; (2) the account has a zero balance and there are no transactions to assess; (3) DOD has made no effort beyond its initial notification to obtain contributions; (4) instead of seeking cash contributions, DOD has pursued cooperative development of several theater missile development systems with U.S. allies; and (5) DOD has not issued any regulations governing the account, since it does expect to receive any cash contributions.

Matter for Congressional Consideration

  1. Status: Closed - Implemented

    Comments: Section 253 of the National Defense Authorization Act for Fiscal Year 1996 repeals Section 242 of the National Defense Authorization Act for Fiscal Year 1994 which established the Theater Missile Defense Cooperation Account and the associated GAO audit requirement.

    Matter: Since there are no funds for GAO to audit, Congress may wish to amend the law and eliminate the requirement that GAO perform an annual audit of the Theater Missile Defense Cooperation Account.


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