DOD Is Examining Opportunities to Further Use Recovery Auditing
NSIAD-99-78: Published: Mar 17, 1999. Publicly Released: Mar 17, 1999.
- Full Report:
Pursuant to a legislative requirement, GAO reviewed the Department of Defense's (DOD) expanded programs concerning recovery auditing.
GAO noted that: (1) DOD did not select at least two commercial functions within its working capital funds accounts and issue a competitive request for proposals by December 31, 1998; (2) however, in response to an August 1998 DOD memorandum encouraging the use of recovery auditing, three working capital funds activities--the Defense Commissary Agency, the Defense Logistics Agency (DLA), and the U.S. Transportation Command--told GAO they are developing plans to use recovery auditing; (3) the Defense Commissary Agency said it plans to have a contract for recovery auditing services by March 31, 1999; (4) DLA plans to expand the use of recovery auditing from the demonstration program in place at the Defense Supply Center in Philadelphia to its other four supply centers; (5) however, as of February 5, 1999, DLA had not published a schedule to show when it plans to have contracts for these supply centers; (6) the U.S. Transportation Command began planning to contract for audit recovery services, although it has not established an implementation schedule; (7) each of the services also expressed an interest in recovery auditing and is evaluating whether to use it; (8) of the other recipients of the August 1998 DOD memorandum, the Defense Finance and Accounting Service plans to use recovery auditing at some future time; (9) the Defense Information Services Agency does not plan to use recovery auditing because it claims to have a successful track record with vendors offsetting overpayments; and (10) the Joint Logistics Systems Center does not plan to use recovery auditing because it is scheduled to deactivate this March.