The Defense Department's Systems of Accounting for the Value of Foreign Military Sales Need Improvement

Gao ID: FGMSD-79-21 March 16, 1979

The procedures by which the Department of Defense (DOD) computes the value of foreign military sales agreements and the yearly foreign military sales ceiling were reviewed.

Approximately $1.1 billion of inconsistencies and errors in accounting for fiscal year (FY) 1977 arms sales were identified. Had the correct sales figures been known, the President's FY 1978 arms sales ceiling, based on FY 1977 sales, might have been set $420 million lower.

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.

Director: No director on record Team: No team on record Phone: No phone on record


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