Survey of the Billing and Collection System for Foreign Military Sales

Gao ID: 100113 February 28, 1977

The billing and collection system for foreign military sales (FMS) cases at the Army Tank-Automotive Material Readiness Command (TARCOM) was surveyed. In addition to nine FMS cases totaling $55.2 million from contractor plants, depot stock, and depot rebuild programs, two cases involving the sale of M60 tanks were examined.

TARCOM did not send billings to the International Logistics Command (ILC) in a timely manner. Delays ranged from 4 months to 1 year in billings for vehicles valued at about $17.6 million. TARCOM did not always follow up on billings sent to ILC to ensure timely collection. Collections representing an asset use charge were erroneously applied to a Procurement of Equipment and Missiles appropriation rather than to Miscellaneous Receipts, U.S. Treasury.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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