Reorganization of the Military Departments' Financial Management Structures

GAO discussed the military services' reorganization of their financial management structures in response to the Department of Defense Reorganization Act of 1986, which requires the departments to designate a single office to conduct functions that are civilian in nature. GAO noted that the: (1) Navy made the fewest changes, since it already had its comptroller functions under the Assistant Secretary for Financial Management; (2) Army integrated the functions and staffs from the financial management and comptroller offices into a new office under the Assistant Secretary for Financial Management; and (3) Air Force abolished the Assistant Secretary for Financial Management position and gave most financial management responsibility to its Comptroller, a major general. GAO believes that: (1) the Air Force financial management reorganization complies with legislative requirements, but could diminish civilian control; and (2) legislation should mandate that each military department have an Assistant Secretary for Financial Management, a highly qualified civilian presidential appointee with extensive financial management experience.