Centralization: Best Long-Range Solution to Financial Management Problems of the Foreign Military Sales Program
FGMSD-79-33
Published: May 17, 1979. Publicly Released: May 24, 1979.
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Highlights
For many years, the Department of Defense (DOD) has experienced serious financial management problems with regard to accounting, billing, and collecting for its foreign military sales (FMS) program.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Congress should require the Secretary of Defense to produce a plan for centralizing accounting and financial management of the FMS program, which should include obligation and expenditure accounting and disbursing of funds, and should ensure that all costs properly chargeable to the program are fully recovered. The plan should: (1) specify the responsibilities of the central accounting organization and the external support required from all organizations involved with the program; (2) establish detailed policies and procedures for centralization and define systems requirements; (3) identify personnel needs, including a description of duties; (4) establish milestones for development, testing, and implementation to include the transfer of existing personnel positions to the centralized accounting organization; and (5) require that the new system be developed and designed in accordance with the Comptroller General's accounting principles and standards and submitted to him for formal approval. | DOD did not agree with the recommendation and, since several more recent reports have been issued and the House Appropriations Committee did not choose to direct centralization, the recommendation is no longer valid. |
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should strengthen the existing Defense steering committee charged with identifying and ranking according to priority FMS financial management problems. |
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
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Topics
Billing proceduresCollection proceduresFederal agency accounting systemsFinancial managementFinancial management systemsForeign military salesProgram managementMilitary forcesCentralizationForeign governments