Military Base Closures: U.S. Financial Obligations in the Philippines
NSIAD-92-51
Published: Jan 22, 1992. Publicly Released: Jan 22, 1992.
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Highlights
Pursuant to a congressional request, GAO determined the potential U.S. financial obligations to the Philippines when the United States closes two military facilities there, focusing on: (1) the costs of separation allowances and contract termination; (2) whether the United States can recover any equipment for reuse elsewhere; and (3) whether the United States has any obligation for environmental cleanup or restoration.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | To ensure that the correct amount of funds needed to pay actual severance liabilities are maintained in the proposed new foreign national employees' separation account, the Secretary of Defense should direct the Navy and the Air Force to reconcile severance pay liabilities with the remaining obligations held in the M account so that only obligated funds for which current liabilities exist are transferred from the M account to the new foreign national employees' separation account. |
On February 18, 1992, the DOD Comptroller directed the Navy and Air Force, under the leadership of the Defense Finance and Accounting Service, to review remaining unliquidated balances in all merged accounts scheduled for cancellation by the end of fiscal year 1993. The Navy and the Air Force are currently reviewing the balances in the merge account.
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| Department of the Navy | The Secretary of the Navy should direct the Navy Comptroller to ensure that funds will be available to cover severance pay liabilities related to the Navy industrial fund. |
On July 31, 1992, the Assistant Secretary of Defense for International Security Affairs reported that the Navy will ensure funds are available to support Navy industrial fund severance pay liabilities.
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| Department of Defense | To ensure that the correct amount of funds needed to pay actual severance liabilities are maintained in the proposed new foreign national employee's separation account, the Secretary of Defense should direct the Navy and the Air Force to annually reconcile actual severance pay liabilities with obligations recorded in the new foreign national employees' separation account and either deobligate or obligate funds, as necessary to match current liabilities. |
On January 8, 1992, the DOD Comptroller Office issued guidance to military commands concerning obligating and reconciling funds to the foreign national employee separation pay account.
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Topics
Base closuresBase realignmentsContract termination costsGovernment liability (legal)International agreementsInternational economic relationsLeaveMilitary basesMilitary materielSeverance payEnvironmental cleanups