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GAO reviewed the Army accounting system used to bill and collect for foreign military sales from foreign countries' trust fund accounts.
Recommendations for Executive Action
|Department of Defense||1. The Secretary of Defense should require the Commander of the U.S. Army Materiel Development and Readiness Command to place increased management emphasis on monitoring and followup efforts to ensure that foreign customers are billed for all shipments. This emphasis would include establishing and enforcing standard timeframes for completing billing actions.|
|Department of Defense||2. The Secretary of Defense should require the Commander of the U.S. Army Materiel Development and Readiness Command to establish procedures to compare amounts obtained from trust fund accounts with amounts disbursed. This procedure should ensure that adequate advances are collected by the Army when major items are procured for direct delivery to foreign military sales customers.|
|Department of Defense||3. The Secretary of Defense should ensure that the Army devises and implements a system which provides for directly charging the foreign governments' trust fund accounts when foreign military sales items are directly obtained from contractors.|