Contingency Operations: DOD's Reported Costs Contain Significant Inaccuracies
NSIAD-96-115
Published: May 17, 1996. Publicly Released: May 17, 1996.
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Highlights
Pursuant to a congressional request, GAO reviewed the reliability of the Department of Defense's (DOD) reported costs for contingency operations, focusing on the: (1) accuracy of reported incremental costs; and (2) adequacy of DOD guidance and accounting systems to ensure accurate cost reporting.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | To improve the accuracy of cost reporting, the Secretary of Defense should direct the DOD Comptroller to clarify existing guidance to specify what costs to include in contingency operations cost reporting. At a minimum the guidance should specify the methodology to: (1) calculate these costs; and (2) adjust costs to reflect offsets. |
Closed – Implemented
On July 21, 1998, the Department directed implementation of a standard contingency cost operations cost breakdown structure to improve contingency operations cost estimating and reporting. This structure, to be implemented on October 1, 1998, contained guidance on what to include in contingency costs and what to exclude. In March 1999, the Department modified volume 12, chapter 23 of its financial management regulations regarding cost reporting, including guidelines for determining baseline and incremental costs for contingency operations.
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| Department of Defense | To improve the accuracy of cost reporting, the Secretary of Defense should direct the service secretaries to develop comprehensive implementing instructions from the DOD Comptroller's guidance. This guidance should specify how the services would like reporting units to apply internal controls standards so that incremental costs are adequately supported, recorded, and reviewed. |
Closed – Implemented
On July 21, 1998, the Department directed implementation of a standard contingency cost operations cost breakdown structure to improve contingency operations cost estimating and reporting. This structure, to be implemented on October 1, 1998, contained guidance on what to include in contingency costs and what to exclude. In March 1999 the Department modified volume 12, chapter 23 of its financial management regulations regarding cost reporting, including guidelines for determining baseline and incremental costs for contingency operations.
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Topics
Accounting errorsAccounting proceduresCivic actionPeacekeepingContingency operationsCost accountingCost of warDefense contingency planningFederal agency accounting systemsFinancial managementInternal controlsMilitary operations