[Propriety of Funding Methods Used by the Department of Defense in Combined Exercises in Honduras]

Pursuant to a congressional request, GAO reviewed the propriety of methods used by the Department of Defense (DOD) to fund joint combined training exercises in Honduras. Regarding the use by DOD of exercise operation and maintenance (O&M) funds in Honduras, GAO found that: (1) DOD could use O&M appropriations to finance military construction contracts under $200,000; (2) the use of O&M funds by DOD for construction projects over $200,000 was improper; (3) the use of O&M funds for several construction projects in Honduras was improper; (4) it was uncertain whether DOD had violated the Antideficiency Act; and (5) DOD should properly adjust its funds in an appropriate manner.