Appropriated Fund Support for Nonappropriated Fund and Related Activities in the Department of Defense

Gao ID: FPCD-77-58 August 31, 1977

The government spends over $600 million each year to subsidize Department of Defense (DOD) activities such as exchanges, clubs, recreation facilities, and gas stations.

Morale, welfare, and recreation programs, excluding commissaries, do over $5 billion in business each year and receive over $600 million in appropriated fund support. Commissaries, considered as appropriated fund activities by the military, do an additional $3 billion in business and receive about $300 million in appropriated fund support. All programs receive appropriated fund support in the form of personnel, supplies, utilities, and/or transportation. In addition to direct appropriations, there are other large subsidies, such as exemption from taxes and free use of real estate. One of the most costly forms of appropriated fund support is the large number of military personnel assigned to or used in morale, welfare, and recreation activities.

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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