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Recommendations Database

GAO’s recommendations database contains report recommendations that still need to be addressed. GAO’s priority recommendations are those that we believe warrant priority attention. We sent letters to the heads of key departments and agencies, urging them to continue focusing on these issues. Below you can search only priority recommendations, or search all recommendations.

Our recommendations help congressional and agency leaders prepare for appropriations and oversight activities, as well as help improve government operations. Moreover, when implemented, some of our priority recommendations can save large amounts of money, help Congress make decisions on major issues, and substantially improve or transform major government programs or agencies, among other benefits.

As of October 25, 2020, there are 4812 open recommendations, of which 473 are priority recommendations. Recommendations remain open until they are designated as Closed-implemented or Closed-not implemented.

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Federal Agency: "Department of Defense: Defense Security Cooperation Agency"

2 publications with a total of 10 open recommendations

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Foreign Military Sales: Financial Oversight of the Use of Overhead Funds Needs Strengthening
GAO-18-553, Jul 30, 2018

Director: Thomas Melito
Phone: (202) 512-9601

7 open recommendations

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Recommendation: The Director of DSCA should follow its requirement to conduct at least two annual reviews of military department business processes for administrative funds. (Recommendation 3)

Agency: Department of Defense: Defense Security Cooperation Agency
Status: Open

Comments: In October 2019, DSCA informed us that it had conducted two business process reviews for military departments in 2019. As of August 2020, we continue to monitor DSCA's ongoing actions to implement this recommendation.

Recommendation: The Director of DSCA should conduct periodic (e.g., annual or biennial) reviews of other DOD components' (e.g., other than military departments) business processes for administrative funds, based on a risk-based approach. Such an approach could include consideration of whether an entity has received a prior review or representative sampling over time, as well as consideration of factors such as the results of prior audits or other identified risks. (Recommendation 4)

Agency: Department of Defense: Defense Security Cooperation Agency
Status: Open

Comments: In October 2019, DSCA informed us that it planned to conduct one review for another DOD component (e.g., other than a military department) in fall 2019. In January 2019, it collaborated with other DOD components that receive FMS administrative funds to develop risk-based criteria for selecting components for periodic business process reviews . DSCA also provided updated policies and procedures for these reviews, which state that DSCA will conduct at least one review for another DOD component annually. As of August 2020, we continue to monitor DSCA's ongoing actions to implement this recommendation.

Recommendation: The Director of DSCA should create and maintain a complete list of military department organizations or offices that receive administrative funds and are subject to DSCA's business process reviews. (Recommendation 5)

Agency: Department of Defense: Defense Security Cooperation Agency
Status: Open

Comments: In May 2019, DSCA provided supporting documentation to show that, as part of its annual budget review cycle, it had required DOD components to provide a list of sub-components/organizations that receive FMS administrative funds. In October 2019, DSCA provided a list of sub-components/organizations that DSCA obtained as part of the 2019 annual budget cycle. As of August 2020, we continue to monitor DSCA's actions to implement this recommendation.

Recommendation: The Director of DSCA should update DSCA's policy for selecting military department organizations for reviews of their business processes for administrative funds, to better ensure that it reflects a risk-based approach. (Recommendation 6)

Agency: Department of Defense: Defense Security Cooperation Agency
Status: Open

Comments: In May 2019, DSCA provided updated standard operating procedures for selecting military department organizations for reviews of their business processes for administrative funds. As of August 2020, we are reviewing the documentation provided and following up with DSCA to determine the extent to which the new procedures reflect a risk-based approach.

Recommendation: The Director of DSCA should clarify guidance to ensure that the DSCA officials conducting reviews of business processes for administrative funds periodically track action items until they are completed. (Recommendation 7)

Agency: Department of Defense: Defense Security Cooperation Agency
Status: Open

Comments: In February 2019, DSCA noted that it had updated its policies and procedures to reflect that it will track action items from business process reviews every 30 days, until the action items area completed. DSCA needs to providing supporting documentation for its efforts to track action items. As of August 2020, we continue to monitor DSCA's ongoing actions to implement this recommendation .

Recommendation: The Director of DSCA should develop a process for conducting periodic (e.g., quarterly or annual), targeted reviews of DOD components' use of administrative funds, including transactions testing, to verify that actual costs incurred are allowable and approved. (Recommendation 8)

Agency: Department of Defense: Defense Security Cooperation Agency
Status: Open

Comments: In February 2019, DSCA noted that it was in the process of conducting "mock" audits of DOD components' use of FMS administrative funds, and that it was undergoing efforts to ensure that a process is in place for the financial review of components' actual spending of these funds. DSCA noted that these efforts were ongoing in October 2019. As of August 2020, we continue to monitor DSCA's ongoing efforts to implement this recommendation.

Recommendation: The Director of DSCA should develop a process for conducting periodic (e.g., quarterly or annual), targeted reviews of DOD components' use of CAS funds, including transactions testing, to verify that actual costs incurred are allowable and approved. (Recommendation 11)

Agency: Department of Defense: Defense Security Cooperation Agency
Status: Open

Comments: In February 2019, DSCA noted that it was in the process of conducting "mock" audits of DOD components' use of FMS CAS funds, and that it was undergoing efforts to ensure that a process is in place for the financial review of components' actual spending of these funds. As of October 2019, DSCA noted that these efforts were ongoing. As of August 2020, we continue to monitor DSCA's ongoing efforts to implement this recommendation.

Foreign Military Sales: Controls Should Be Strengthened to Address Substantial Growth in Overhead Account Balances
GAO-18-401, May 10, 2018

Director: Thomas Melito
Phone: (202) 512-9601

3 open recommendations

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Recommendation: The Director of DSCA should take steps to ensure that comprehensive reviews of the administrative fee rate are completed at least every 5 years. (Recommendation 1)

Agency: Department of Defense: Defense Security Cooperation Agency
Status: Open

Comments: In its agency response to this report, DSCA concurred with this recommendation. As of December 2018, DSCA had planned to update its policy to clarify its process for completing comprehensive reviews of the administrative fee rate to ensure that adequate planning for the next rate review allows it to be completed on time. However, in updating its policy in April 2019, DSCA did not include any clarifications to ensure comprehensive reviews would be completed at least every 5 years or be adequately planned. As of August 2020, DSCA officials indicated they planned to take further action to address this recommendation by December 2020. We will continue to monitor DSCA's implementation of this recommendation.

Recommendation: The Director of DSCA should direct the Defense Contract Management Agency (DCMA) and the Defense Finance and Accounting Service to work together to ensure timely correction of the fiscal years 2016 and 2017 DCMA contract administration services (CAS) reimbursement issues. (Recommendation 3)

Agency: Department of Defense: Defense Security Cooperation Agency
Status: Open

Comments: In its agency response to this report, DSCA concurred with this recommendation. In October 2018, DSCA sent a memo to DCMA and DFAS directing them to resolve the reimbursement issues and to develop a corrective action plan. As of August 2020, DSCA officials estimated this corrective action plan would be implemented by December 2020. . We will continue to monitor implementation of this recommendation.

Recommendation: The Director of DSCA should take steps to ensure that comprehensive reviews of the CAS fee rate are completed at least every 5 years. (Recommendation 4)

Agency: Department of Defense: Defense Security Cooperation Agency
Status: Open

Comments: In its agency response to this report, DSCA partially concurred with this recommendation, noting that although performing a comprehensive review of the CAS fee rate every 5 years is a preferred practice, the agency did not plan to do so for its upcoming fee review due to various factors. In January 2020, DSCA lowered the CAS fee rate based on a rate review completed in 2019, six years after the prior rate review. In addition, in April 2019, DSCA updated related policy but included no clarifications to ensure future comprehensive reviews would be completed at least every 5 years or be adequately planned. As of August 2020, DSCA officials indicated they planned to take further action to address this recommendation by December 2020. We will continue to monitor DSCA's implementation of this recommendation.