Financial Management: Reliability of Weapon System Cost Reports Is Highly Questionable
AIMD-94-10
Published: Oct 28, 1993. Publicly Released: Oct 28, 1993.
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Highlights
GAO reviewed the information systems the Army uses to identify, record, and report weapon system costs.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of the Army | To ensure that weapon system overhauls, modifications, and operating and support costs are readily identified and reported by weapon system, the Secretary of the Army should direct Army financial managers to assign appropriate weapon system Management Decision Package codes in conjunction with available codes in the Army's Standard Financial Information System to record overhaul, modification, operating, and support costs by weapon system. |
DOD did not concur with this recommendation because the Army manages by missions and programs, not by weapon systems. DOD also indicated that funding limitations would preclude implementation of this recommendation.
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| Department of the Army | To ensure that Congress receives useful, accurate information on weapon system costs, the Secretary of the Army should direct Army financial managers to supplement the Army's Selected Acquisition Reports (SAR) with information on all costs of weapon systems, including operating, support, and modification costs, which the Army uses in its own internal analyses. |
The Army did not concur in this recommendation, stating that the SAR was a Department of Defense report and that the information to be included in SAR was specified by law (title 10, U.S.C., sec. 2432).
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| Department of the Army | To ensure that Congress receives useful, accurate information on weapon system costs, the Secretary of the Army should direct Army financial managers to maintain documentation detailing the rationale for, and calculation of, any changes made in information reported in previously issued SAR. |
DOD indicated that it issued guidance on January 11, 1994 that reemphasized the importance of maintaining documentation of the rationale for, and calculations of, any changes made to information reported in previous SARs.
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Topics
Accounting proceduresWeapons systemsCost accountingCost analysisData integrityFederal agency accounting systemsFederal property managementFinancial management systemsManagement information systemsProperty and supply management