Centralization
Best Long-Range Solution to Financial Management Problems of the Foreign Military Sales Program Gao ID: FGMSD-79-33 May 17, 1979For many years, the Department of Defense (DOD) has experienced serious financial management problems with regard to accounting, billing, and collecting for its foreign military sales (FMS) program.
DOD has not had an adequate program-wide financial management plan since the program's inception. Each military department and the Security Assistance Accounting Center designed their own systems, which have not provided accurate or timely data. As a result, DOD is unable to provide foreign governments with a proper accounting of how their money was spent. Policy implementation has been inconsistent and attempts at standardization have failed. Although some improvements have been made, progress has been slow and many longstanding problems remain uncorrected.
RecommendationsOur 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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