Navy Anti-Deficiency Act Violations at Bay St. Louis, Mississippi

GAO was requested to monitor the Department of the Navy's investigation of Antideficiency Act violations at the National Space Technology Laboratories in Bay St. Louis, Mississippi.

The Naval Audit Service reported on budgeting, appropriations, fund accounting, personnel, and other support functions by the Director of Naval Oceanography and Meteorology for shore activities at Bay St. Louis. The Audit Service questioned the use of Navy Operation and Maintenance funds to construct a $275,000 facility, declaring that the project should have been financed by Navy Military Construction funds. The Navy Comptroller concurred with this judgment, and the Chief of Naval Operations directed the Naval Inspector General to investigate the situation. The Inspector General reported that the construction of two facilities, each costing about $275,000, was improper. The Oceanographer of the Navy and the Naval Oceanography and Meteorology Director, the officials under whose orders the facilities were built, were requested by the Chief of Naval Operations to submit violation reports because construction had been paid for with funds not legally available for the purpose and represented violations of the Antideficiency Act. The violation reports were to be reviewed by the Navy Comptroller prior to submission to the Secretary of Defense. The investigation by the Naval Inspector General seemed thorough.