Review of Foreign Military Sales Customer Assistance Team Costs

Some costs incurred by the Anniston Army Depot for foreign military sales customer assistance teams and reported through the Army Depot System Command to the Tank-Automotive Materiel Readiness Command were not billed to the Security Assistance Accounting Center for reimbursement. Foreign customers are required to reimburse the Department of Defense (DOD) for all cost elements identified in the DOD offer and acceptance form for the sale of defense articles and services, including charges for salary and travel expenses of customer assistance teams which provide technical assistance to the customers.

A Morrocco case was not billed $5,619 for travel and personnel expenses incurred by a two-person quality assurances team that visited Morrocco to assure the proper delivery of 28 tanks. A Greece case was not billed $9,100 for travel and personnel expenses incurred by a four-person team that visited Greece to provide technical assistance on tank conversion. Apparently the Tank-Automotive Materiel Readiness Command Program and the Budget Division did not inform the Finance and Accounting Division that these were reimbursable costs. An additional 13 cases with customer assistance costs totaling $456,280 were also identified.

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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